17th Apr 2019 10:20
LONDON (Alliance News) - ZOO Digital Group PLC said on Wednesday it expects earnings for the second half of its recently ended financial year to be at a breakeven level, despite steady growth in annual revenue.
The cloud-based media production software provider said continued investment into the business as well as a faster decline in ZOO's legacy packaged media revenue has impacted profitability.
As a result, adjusted earnings before interest, taxes, deprecation and amortisation for the six months to the end of March will be around breakeven, compared to a profit of USD491,000 in the first half.
For the year to the end of March, revenue is expected to edge up to USD29.0 million from USD28.5 million the prior year, with growth in localisation revenue through subtitling and dubbing services.
In addition, ZOO Digital said it is progressing with the search for a new chair and expects to announce a new appointment on or before it publishes its annual results, which are due within the week starting June 24.
"The financial outturn for 2019 is frustrating, having been impacted by market shifts and client disruption, but we are pleased that the business has grown and been cash generative. We have been able to meet our investment and operational objectives which leave us well placed in markets globally where the requirement for premium media localisation clearly continues to increase," said Chief Executive Stuart Green.
Shares in ZOO Digital were 9.7% lower at 49.65 pence on Wednesday.
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