Zinc Media earnings hit by delays to major projects

Television and multimedia content producer Zinc Media recorded a slight year-on-year jump in interim revenues as its order book improved amidst a strategic shift in programming but earnings tumbled as delays to major projects hit home.

Revenues grew 1.02% to £9.86m in the six months ended 31 December, but EBITDA was all but erased at £10,000, a 95% drop versus the £240,000 recorded at the halfway point of last year.

Zinc's order book expanded 42.3% to £20.5m and margins remained steady at 32.8%.

Diluted losses per share came to 0.05p, a notable difference compared to the 0.01p earnings per share turned in a year earlier.

Zinc, which has been moving towards bigger budget series over the last few years, noted that it was in production on "several big-budget international commissions" and noted that, while the start date for some of these projects had been "somewhat delayed", impacting its first-half results, it believes the contract wins demonstrated its "credentials and ability to play in the international arena".

The AIM-listed group now expects adjusted EBITDA to be higher in the "traditionally busier" second half of the year.

Chief executive David Galan said: "Despite a disappointing performance in one of our TV units, the other TV units, including our latest acquisition, Tern Television, continue to trade well and we continue to see results in our strategy to secure a higher mix of longer running series and international revenues."

As of 0900 GMT, Zinc Media shares had slumped 13.33% to 0.31p.