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Zoo Digital sales soar on higher demand for localisation services
(WebFG News) - Subtitling and dubbing specialist service Zoo Digital saw momentum from its strong first-half performance carry on into the second as revenues and profits both surged.
Updating the market ahead of its full-year results, Zoo told investors on Monday that it expected earnings before interest, tax, debt and amortisation to come in roughly 27.8% ahead of its previous trading year at $2.3m thanks to a 69% increase in revenues.
Demand for Zoo's 'localisation' services continued to grow throughout the year, accounting for 74% of the group's overall revenues, leading the firm to steadily increase the number of quality voice actors and dubbing professionals on its roster in order to satisfy demand as its reputation in the market continued to grow across a number of languages.
Given the heightened level of demand for its localisation services, Zoo advised that it intended to re-classify the costs of its internal staff responsible for fulfilling client projects as a cost of sale as opposed to a central overhead, as it had done previously, for the purpose of reporting its final results.
Zoo's board believed that this would be "more representative of the group's trading" and would have no effect on the reporting of its overall profitability.
Gross cash as of 31 March was $2.4m, more than triple the $700,000 balance it held a year earlier, with no other material borrowings other than its long-term convertible loan notes.
Stuart Green, chief executive of Zoo, said, "We are pleased to confirm guidance for the full year results. We continue to see momentum in the business, driven by our localisation services, and remain optimistic for the future."
Zoo expects to publish its full-year results by 7 July.
As of 0900 BST, shares had lost 5.80% to 96.56p.