30th Sep 2019 10:36
(Alliance News) - Shares in Zinc Media Group PLC fell on Monday after its annual loss widened on exceptional costs despite revenue growth.
Shares in the television and multimedia content producer were 19% lower at 0.27 pence on Monday in London.
For the year to the end of June, Zinc Media's pretax loss was GBP2.9 million, widened from GBP1.8 million the year before, due to a rise in operating expenses at GBP6.8 million from GBP6.1 million.
There were also higher exceptional costs at GBP1.7 million from GBP1.3 million, on impairments of the carrying value of goodwill on Zinc Communicate and higher restructuring costs.
However, revenue increased by 14% to GBP24.6 million from GBP21.7 million the prior year, driven by growth in Zinc Media's Television business by 21% to GBP21.2 million.
In particular, the Television unit was buoyed by a strong performance from Tern Television with 20 different titles in production and a strong pipeline.
Looking ahead, Zinc Media said its London and Manchester TV business started its current financial year in line with prior periods, while Tern TV has continued its strong performance.
However Zinc Communicate and Ten Alps Communications continue to face financial challenges, and the group said it will work to reposition these businesses into larger and more profitable markets.
"I am confident that we now have good visibility of the issues within the group and know where improvements need to be made. We will focus on diversifying and growing our revenue within TV and non-TV, improving margins and building cultural and operational excellence. The medium-term prospects for sustained profitability look good," said Chief Executive Officer Mark Browning.
By Dayo Laniyan; [email protected]
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