AIM-listed ZOO Digital Group, the specialist localisation and digital media services provider to Hollywood studios and household name streamers, has reported improved full-year results after a period of significant restructuring, with the company aiming to return to sustained profitability and cash generation in the next year.
According to the firm’s FY24/25 results, published today, for the year to 31 March 2025, revenues rose 22 per cent to $49.6m, up from $40.6m in the prior year, driven by improved customer retention and new service uptake. Adjusted EBITDA swung to a profit of $1.1m from a loss of $13.6m in FY24. Operating losses narrowed to $6.5m from $19.1m, while pre-tax losses were reduced to $8.3m from $20.5m.
Gross cash at year-end stood at $2.7m, down from $5.3m a year earlier, with no draw on invoice financing facilities. The board said cost discipline remained a priority, with $8.4m of annual fixed cost cash savings delivered during the period, alongside a further $2.5m of annual savings targeted for FY26.
Stuart Green, chief executive, said the group had “shown resilience through a period of market transition” and had restructured operations to create a sustainable platform “while retaining the flexibility to scale as we deliver increased order volumes”.
The group launched its “Fast Track” localisation service for live and near-live content during the year, which Green said had been “well received” by global streaming clients, albeit contributing only modest revenue so far. He added that the company saw significant growth potential in expanding its share of spending with major streaming platforms over the long term.
ZOO reported a strong recovery in customer retention, with retained sales of 98.4 per cent compared with 92.3 per cent in the prior year. Relationships with non-traditional studios were strengthened as part of a diversification drive, and the company secured status as a preferred fulfilment vendor for Amazon Prime Video.
The near-term trading picture remains mixed, however. Reduced demand for dubbing services resulted in first-quarter FY26 revenue being 18 per cent lower than the same period last year. Excluding dubbing, other service lines have now recorded three consecutive quarters of revenue growth.
Green added that operational efficiencies implemented in FY25, together with further cost reductions and the deployment of artificial intelligence and automation technologies, had created a “leaner operating model” that would support margin improvement as revenues recover. The company delivered an EBITDA profit in the first quarter of FY26, after restructuring costs, in line with management expectations.
The CEO said the company was entering the new financial year in a stronger position to capitalise on an evolving streaming market in which “most media companies are operating profitable platforms, supported by new content formats and monetisation models”.
ZOO, headquartered in Sheffield, provides technology-enabled localisation, dubbing, subtitling and media services to film studios, streaming platforms and broadcasters.
