15th Mar 2019 09:22
LONDON (Alliance News) - Zinc Media Group PLC on Friday said it swung to a loss in its first half, with its Popular Factual unit proving a significant drag on profit.
Shares in the TV and multimedia content maker were down 16% at 0.30 pence on Friday morning.
For the six months to September 30, the company posted a pretax loss of GBP711,000, swinging from a profit of GBP2,000 the year before.
Zinc Media said its Popular Factual unit had "not yet experienced the volume required to achieve profitability" in the period, but added that its has implemented a restructuring exercise in order to cut down on overheads and "plan a path back to profitability".
"Whilst the performance of our Popular Factual unit has been a drag on profitability, we are pleased with the performance of our recent acquisition of Tern Television and the other parts of the TV business," said Zinc Media Chair Peter Bertram.
Operating expenses increased to GBP3.2 million from GBP3.0 million; depreciation and amortization increased to GBP408,000 from GBP275,000; and the company swung to a GBP172,000 loss on exceptional items from a GBP182,000 gain.
Revenue was slightly higher, hitting GBP9.9 million versus GBP9.8 million.
Zinc Media 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. We expect this year to be second half weighted and have a contracted order book underpinning this expectation."
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