29th Aug 2014 10:04
LONDON (Alliance News) - ZOO Digital Group PLC Friday expressed cautious optimism for its future as a trend of increasing monthly billings continued into its new financial year, though it posted a widened pretax loss in the year that ended March 31.
ZOO Digital provides cloud-based media production services and software. Its shares were trading down 11% at 8.21 pence following the announcement.
The company posted a pretax loss of USD2.7 million, widened from a loss of USD1.2 million, as revenue declined to USD9.6 million from USD10.4 million, and cost of sales more than doubled to USD1.7 million from USD745,000. Costs were higher primarily due to the expansion of the company's sales and marketing team.
ZOO said that it had transitioned its business from traditional software licensing, and a heavy dependence on one major customer, to a business model with a range of different customers. Its major focus has been its subtitling and captioning service ZOOsubs.
Progress on ZOOsubs continues in line with its expectations, it said, and five Hollywood studios, as well as a number of other film and television makers, took up the product during the year.
The ZOO Digital said that revenue and billings had improved in the second half compared to the first, and billings had continued to improve in the new year.
"The company has succeeded in diversifying both its client base and revenue mix as well as reducing its exposure to the production of physical media," said Chief Executive Stuart Green in a statement. "With the ability to deliver across all formats of digital content and increasing customer diversification, the board believes that we have the right platform for sustainable growth and, as we look forward, are cautiously optimistic about our prospects."
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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