LONDON (ShareCast) - (Sharecast News) - Entertainment localisation and digital media specialist Zoo Digital reported a 91% improvement in revenue in its first half on Tuesday, to $51.4m, driven by strong growth in localisation and the expansion of media services.
The AIM-traded firm said adjusted EBITDA for the six months ended 30 September more-than-doubled to $7.3m, from $2.4m a year earlier, reflecting its "strong" operational gearing.

It reported a maiden first-half profit before tax of $3.5m, swinging from a loss of $1.5m year-on-year, while earnings per share came in at 3.8 cents, compared to losses of 2.02 cents per share year-on-year.

Cash generated in the period totalled $4.9m, with the company reporting an operating cash conversion of 106%.

It also described a "strong" balance sheet, with cash at period end standing at $10.8m, up from $8.2m a year prior.

Looking ahead, Zoo Digital said it had a "strong" order book across all service lines, with "good visibility" for the second half, and a pipeline of work from established, satisfied customers.

The board said it would look to further expand its international operations, to deliver revenue growth and improved visibility across multiple service lines.

There was a "clear opportunity" as streaming service providers focussed on content as a key differentiator, it added, with increased sourcing from international markets.

Zoo Digital said it would continue to invest in expanding its capacity to support an increase in its share of the growing market in the second half and into the 2024 financial year, which was expected to generate increased profitability in future periods.

The directors said they expected the company's full-year outcome to be in-line with market expectations, adding they were "confident" in delivering continued revenue growth and margin improvements.

"In the first half, Zoo has continued its rapid progress following a strong year in the 2022 financial year," said chief executive officer Stuart Green.

"A near doubling of revenue, record profits and good cash conversion in the first half have combined to deliver a very successful period, and the board has continued to invest in capacity which should support future profitable growth.

"The fundamental drivers behind our growth remain as strong as ever as streaming continues to globalise and multi language content is required for both new productions, which are now back in full swing, and the migration of back catalogues."

Green said the company had developed its offer to capture demand, by investing in expanding markets such as India, South Korea, Turkey, the United Arab Emirates and Denmark, with others to come.

"We see continuing evolution of the marketplace with demand across each of our service lines remaining buoyant.

"We are well positioned for long-term sustainable growth and as a result are confident of continued progress for the remainder of the 2023 financial year and beyond."

At 1257 GMT, shares in Zoo Digital Group were up 6.82% at 180p.

Reporting by Josh White for Sharecast.com.

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