REG - Zoo Digital Group - AGM Statement <Origin Href="QuoteRef">ZOO.L</Origin>

Zoo DigitalAnnouncement

25/09/2017 07:07

RNS Number : 6400R
Zoo Digital Group PLC
25 September 2017
25 September 2017
ZOO DIGITAL GROUP PLC
("ZOO" or "the Group")
AGM Statement
At ZOO's Annual General Meeting to be held later today, Roger Jeynes, Chairman, will make the following statement:
"At last year's meeting of shareholders I highlighted that 2016 marked the beginning of a new era in screen entertainment and that ZOO was well placed to benefit by being at the forefront of innovation in the market. A year on and as we approach the end of the first half of our financial year, I am pleased to say that there is strong evidence to support this.
"Sales of subtitling services delivered using ZOOsubs, the Company's proprietary cloud based subtitling solution, have more than doubled year-on-year during the financial year to date. This is the principal reason why the Board expects to report revenues for the first half in excess of $12 million. As the pipeline remains strong, the Board expects revenue for the full financial year to be well ahead of the Board's previous expectations. The increasing proportion of subtitling work has reduced seasonality, reduced client concentration and improved visibility, albeit at lower gross margins than our traditional work, and this when taken together principally with the investment being made back into the Group, as set out below, means that the Board's expectations with respect to EBITDA and profitability are unchanged.
"The success of the subtitling work is particularly pleasing in view of the ongoing investments committed by ZOO in developing the technology. We continue to invest across the business with a current emphasis on dubbing. The reaction to our latest cloud computing platform, ZOOdubs, which provides a highly innovative dubbing solution, has been extremely encouraging. Critically acclaimed, having been awarded the TV Technology 'Best in Show' award at NAB and an IABM award for Design and Innovation at IBC, ZOOdubs has already been instrumental for processing significant volumes of dubbing work that will deliver in September.
"The Company was also pleased to receive security accreditation from the Content Delivery and Security Association for our new Sheffield facility, a key endorsement for some of our existing and target customers.
"The proceeds from the Company's successful placing have started to be put to use and the benefits are already being seen."
The Company will hold a Capital Markets Day for analysts and investment managers on 25th October 2017.
This announcement contains inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon the publication of this announcement, this inside information is now considered to be in the public domain.
For further enquiries please contact:
ZOO Digital Group plc
0114 241 3700
Stuart Green - Chief Executive Officer
Helen Gilder - Chief Finance Officer
finnCap Ltd
Henrik Persson / Emily Watts / Alex Price (corporate finance)
Camille Gochez (corporate broking)
020 7220 0500
Alma PR
Josh Royston / Hilary Buchanan
0778 090 1979
About ZOO Digital Group plc:
ZOO Digital is a provider of services allowing quality TV and movie content to be subtitled in any language and prepared for sale with all major online retailers. ZOO's clients are some of the best-known brands in the world including major Hollywood studios, global broadcasters and independent distributors.
ZOO's point of difference in the marketplace is its development and use of innovative cloud technology. This ensures that content is subtitled in any language and delivered to all the major online platforms such as Amazon, iTunes, Google and Hulu with reduced time to market, higher quality and lower costs. ZOO's agile, cloud-based business model enables clients to respond to market trends, scale easily with business growth and capitalise on new routes to market in the fast moving and evolving digital industry.
ZOO operates from the entertainment hubs of Los Angeles and London with a development and production centre in Sheffield. Its full-service proposition includes digital distribution, subtitling & captioning, metadata creation & localisation, dubbing, artwork localisation, workflow and asset management.
www.zoodigital.com

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