TIDMZOO
RNS Number : 8935N
Zoo Digital Group PLC
28 September 2023
28 September 2023
ZOO DIGITAL GROUP PLC
("ZOO", the "Group" or the "Company")
AGM Statement and Trading Update
ZOO Digital Group plc (AIM: ZOO), a leading provider of
end-to-end cloud-based localisation and media services to the
global entertainment industry, will hold its Annual General Meeting
(AGM) at 5.00pm BST today. At the meeting, Gillian Wilmot,
Chairman, will make the following statement:
"The market disruption and temporarily subdued demand for
localisation and media services outlined in the full year results
on 10 August 2023 are continuing. Major media organisations are in
the process of realigning for profitability, and industrial action
by writers and actors is ongoing. Consequently, visibility remains
limited, and resolution of the strikes is essential for normal
order flow to resume. There has been encouraging progress over the
last week in negotiations between the Writers' Guild of America and
the Association of Motion Pictures and Television Producers
resulting in a provisional deal that it is expected will pave the
way for writers to resume work.
"Despite this progress, the ongoing disruption continues to have
a significant short-term impact and market expectations for ZOO's
FY24 outcome assumed former order levels would resume from October
2023. This now looks unlikely, and therefore a range of revenue
outcomes for the second half of the financial year is possible
ranging from a similar level to the first half to an increase in
revenue in Q4.
"Whilst orders are being processed monthly, they have been and
continue to be at historically low levels such that H1 revenues are
expected to be approximately $21 million, leading to a significant
EBITDA loss for the first half of the current financial year.
However, the Company is in a strong financial position with net
cash at 30 September 2023 expected to be no less than $16
million.
"The Board has taken steps to mitigate ZOO's position through
the implementation of cost reductions with the objective of
achieving break-even in respect of fiscal Q4. The terms of the
planned acquisition of the Company's partner in Japan have been
renegotiated and the parties have agreed to defer completion until
order flow has normalised.
"The Board is confident that the changes arising from strategic
reviews by ZOO's major customers will be favourable for the Group.
These include accelerated transition to an End-to-End approach,
studios engaging with fewer, more capable suppliers, and greater
dependence on ZOOstudio, all of which will strengthen ZOO's market
position. ZOO continues to make good progress in cementing its
relationships with existing and potential new customers even during
this period of temporary disruption.
"ZOO's strategy is in alignment with the needs of its current
and potential customers and the Board expects the Group to be well
positioned for enhanced growth once former order levels resume, in
line with our medium and long-term aspirations. The structural
drivers for international, multilingual content remain firmly in
ZOO's favour.
"The Board will manage ZOO's cash position carefully whilst
protecting production capability and capacity to enable a rapid
rebound of revenues when orders return. To support this the Board
will continue to pursue small investments in strategic locations at
attractive valuations that strengthen ZOO's proposition for
international dubbing."
Presentation slides that will accompany an investor update
following the AGM will be available on the Company's website later
today. Shareholders may register to join a live stream of the AGM
and investor briefing here: https://www.zoodigital.com/agm-2023
The Company intends to announce its interim financial results
for the six months to 30 September 2023 in November 2023.
This announcement contains inside information as defined in
Article 7 of the Market Abuse Regulation No. 596/2014 ("MAR"). Upon
the publication of this announcement, this inside information is
now considered to be in the public domain. The person responsible
for making this announcement is CEO Stuart Green and CFO Phillip
Blundell.
For further enquiries, please contact:
ZOO Digital Group plc +44 (0) 114 241 3700
Stuart Green - Chief Executive Officer
Phillip Blundell - Chief Finance Officer
Kam Bansil - Investor Relations
Stifel Nicolaus Europe Limited (Nominated
Adviser and Joint Broker) +44 (0) 20 7710 7600
Fred Walsh / Erik Anderson / Tom Marsh
/ Richard Short
Singer Capital Markets (Joint Broker) +44 (0) 20 7496 3000
Shaun Dobson / Asha Chotai
Instinctif Partners (Financial PR) +44 (0) 207 457 2020
Matthew Smallwood / Joe Quinlan zoo@instinctif.com
About ZOO Digital Group plc:
ZOO Digital supports major Hollywood studios and streaming
services to globalise their content and reach audiences everywhere,
by providing leading, technology-enabled localisation and media
services.
Founded in 2001, ZOO Digital operates from hubs in Los Angeles,
London, Dubai, Turkey, South Korea, India, Denmark and Spain with a
development and production centre in Sheffield, UK.
The Group provides media services through its platforms that
include: ZOOsubs, ZOOdubs and ZOOstudio. Its full-service
proposition delivers the end-to-end services required to prepare
both original and catalogue content for digital distribution; these
services include dubbing, subtitling & captioning, metadata
creation & localisation, mastering, artwork localisation and
media processing. Alongside this offering, ZOO also provides its
customers with management platforms and strategic solutions to
support their own internal globalisation operations.
ZOO is a go-to service partner for media businesses looking to
globalise their content across different territories, languages and
distribution platforms. Using its innovative technology-enabled
approach, ZOO helps its customers to reduce time to market, lower
costs and deliver high quality products to their global audiences.
The business has frameworks in place with all major Hollywood
studios and streaming services. Its customers include Disney,
NBCUniversal, HBO and Paramount Global.
ZOO's competitive advantage arises from three interlinking
factors - the leading role it has played in the digital
transformation of its sector; the world class proprietary platforms
that it develops to enable this transformation; and the global
supply chain of thousands of freelancers, working collaboratively
in ZOO's platforms, which delivers services that scale easily to
meet demand. These factors combine to make ZOO uniquely placed to
capitalise on new market opportunities in a fast-paced and
constantly evolving industry.
www.zoodigital.com
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END
AGMEAKNXAENDEFA
(END) Dow Jones Newswires
September 28, 2023 02:00 ET (06:00 GMT)
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