Zoo Digital swings to interim loss despite jump in revenues

Zoo Digital said on Monday that it swung to a loss in the first half despite a rise in revenues, as it invested in new staff and incurred higher costs of initial dubbing projects.

In the six months to the end of September, the group made a pre-tax loss of $137,000 versus a profit of $421,000 in the same period a year ago, even as revenue jumped 63% $12.7m. Zoo said top line growth was largely driven by the increasing proportion of revenue derived from its proprietary localisation services, predominantly subtitling delivered using ZOOsubs, but also from the first projects processed using ZOOdubs, its new dubbing platform.

Despite the loss, the company said it had made “significant progress” in all facets of the business.

Chief executive Stuart Green said: “The first half of the year has seen further operational improvements, highlighted by strong demand and very positive critical recognition, a strengthening of the group's balance sheet and adding expertise to the board of directors. This is reflected in a much-improved financial performance, with the foundations laid for enhanced performance in future periods, and the confidence of management to invest for growth.

"Trading in the second half of the year has begun well, with revenue expectations ahead of market guidance, balanced against our increasing investment to satisfy increasing demand and support future growth. The board remains confident of meeting its full year management expectations for adjusted EBITDA and is excited for the group's future."

At 1135 GMT, the shares were down 0.3% to 60.85p.