LONDON (ShareCast) - (Sharecast News) - Software firm Zoo Digital said on Tuesday that full-year underlying earnings were expected to have more than doubled, driven by an acceleration in revenues and cost control measures implemented amid the Covid-19 pandemic.
Zoo Digital said revenues for the year ended 31 March were now expected to be $39.5m, up 33% year-on-year and ahead of previous management guidance of at least $38.0m, while EBITDA was pegged to more than double from $2.1m to roughly $4.5m.

Net cash on 31 March, prior to the receipt of proceeds of the group's recent share placing, was $2.9m, a marked improvement on the $700,000 the group had on hand at the same time last year, reflecting strong cash generation and tight management of costs.

The AIM-listed group stated the past year had seen an "accelerated evolution of the entertainment sector" as the Covid-19 pandemic temporarily stalled production of new titles and led to consumer take-up of on-demand streaming services growing "considerably".

It also highlighted that some film and TV productions had started to resume, with the second half of the 2021 calendar year expected to see the completion of "significant numbers" of new titles.

Chief executive Stuart Green said: "We have delivered a strong second-half performance as streaming services seek to grow their customer bases internationally and on a global scale.

"Looking ahead, we expect new title production to resume and back catalogue migration to continue. Q1 of our new financial year has begun well."

As of 0850 BST, Zoo Digital shares were up 5.83% at 118.0p.

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