4th Nov 2019 09:54
(Alliance News) - Zoo Digital Group PLC on Monday swung to first half profit on lower sales costs, but reported a slight revenue decline.
In the six months to September 30, the digital distribution service provider swung to pretax profit of USD374,000 from a USD159,000 loss in the first half of last year. Revenue dipped by 4.4% year-on-year to USD14.2 million from USD14.9 million.
Zoo reported sales costs of USD8.5 million, 15% lower than USD9.9 million from last year.
The company said its performance was in line with expectations, as it anticipated a decline in sales from legacy services like DVD and Blu-ray. Excluding these services, revenue grew by 7% year-on-year, Zoo added.
The company added that a drive to digital streaming services from major content producers has led to favourable market dynamics.
Zoo explained: "Walt Disney Co, NBC Universal Media LLC and Warner Media LLC confirming the launches of their own direct-to-consumer over-the-top services in the next six months. This, coupled with Netflix Inc, Apple Inc and Amazon.com Inc announcing significant increases in their budgets for original content, demonstrates a growing market for exactly the type of services offered by Zoo."
Shares in Zoo were 6.6% lower at 78.96 pence each in London on Monday morning.
By Eric Cunha; [email protected]
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