LONDON (ShareCast) - (Sharecast News) - Cloud-based localisation and distribution service Zoo Digital expects group revenues to be in line with expectations at $29m, up from the $28.5m recorded last year, on the back of 5% growth in total localisation revenues to $22.6m despite strong comparatives.
Subtitling revenues recovered strongly and cloud dubbing service revenues were up 17%.

The AIM-listed group continued to invest in accordance with its plans and told investors on Wednesday that it was "well positioned to respond to a rapidly changing entertainment industry and the boom in demand for TV and movie content via streaming services".

However, as previously expected, Zoo's investment, together with a faster than expected acceleration in the decline of its legacy packaged media revenues, has impacted its profitability and the group now expects adjusted EBITDA in the second half to be around break-even.

Zoo was cash generative in the back half of the year by focussing on strict working capital management, despite lower than anticipated profitability.

Chief executive Stuart Green said: "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."

As of 1200 BST, Zoo shares had sunk 9.64% to 49.70p.

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