22nd Apr 2022 14:39
(Alliance News) - Zinc Media Group PLC on Friday reported a narrowed loss for 2021 but said that revenue fell in the year, due to a Covid-19 impacted first half.
The Edinburgh-based content creation company recorded a pretax loss of GBP2.6 million in 2021, narrowed from GBP4.1 million in the 18 months to December 31, 2020. This can be attributed to operating expenses that fell 29% to GBP9.1 million from GBP12.9 million.
This was on revenue of GBP17.5 million, down 49% from GBP30.6 million in prior 18-month period.
The company blamed this on a weak, Covid-19 hit first half, with lockdowns between January and April.
"Covid was our biggest risk, it flattened TV," Chief Executive Mark Browning confirmed in an interview with Alliance News.
"TV is a people business and if you can't access people, meet with people, and film in their communities, it is very, very difficult."
In 2021, its television businesses represented roughly 83% of its revenue, Zinc added.
However, the company said that the content market is improving from the Covid-19 inflicted decline.
Looking ahead, it believes its opportunity is "significant."
It expects future growth to come from pursuing organic and acquisitive opportunities and is optimistic that growth will accelerate in 2022 and beyond.
"Revenue is growing again, our margin performance is outstanding, we are diversifying into new content markets, the business was cash generative in the second half and our pipeline shows the largest amount of advanced business in the last three years. Our balance sheet is strong, which will allow us to make further investments for long term growth," CEO Mark Browning added.
Shares were down 3.3% at 118.00 pence each on Friday in London.
By Abby Amoakuh; [email protected]
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