Zinc Media swings to adjusted earnings as revenue falls

Television and multimedia content producer Zinc Media Group announced its unaudited interim results for the six months to 31 December on Wednesday, with group revenues of £9.19m, down from £10.18m in the first half of the 2016 financial year.

The AIM-traded company’s gross margin increased to 30.8% from 28.5%, with the board reportedly placing a renewed focus on quality of revenue and cost control.

Adjusted EBITDA was £0.07m, swinging from a first half EBITDA loss of £0.14m in the prior period, with the firm’s loss before tax from continuing operations being £0.43m, widening from £0.14m.

Its diluted loss per share from continuing activities was 0.09p, growing from the 0.03p loss per share reported at the same time last year.

Total assets stood at £12.99m at period end, compared to £18.94m year-on-year, while cash was £1.63m, shrinking from £2.05m.

During the period, the board did complete a £1.27m fundraising and debt restructuring.

“We are delivering on our plan to return the group to profitability, after the losses of recent years,” said chairman Peter Bertram.

“The team has been strongly focussed on a difficult and painful restructuring, the majority of which is now behind us.

“The strategy now is to accelerate profitability and deliver growth in the TV production businesses.”