Zoo Digital has warned the market that its profits are likely to be below market expectations.
The Sheffield group, which provides localisation and digital media services to the global entertainment industry – such as subtitling and dubbing – made the announcement to the Stock Exchange this morning.
Despite the warning, it stated that its full year FY25 revenues will be at least $50.5m. That marks a 24% increase year-on-year. It’s also projecting a return to profit of “at least $1m”, after posting a loss of $13.6m last year.
It said that it had achieved this through “targeted cost saving measures” including reducing its fixed costs by 20% during the year.
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Not included in today’s expectations are the additional of “several high value projects.” That’s because it’s uncertain when they’ll start generating revenue, as this will depend on when the filmmakers can provide the assets for them to work with.
During the period, Zoo has signed a deal with Amazon Prime Video to become a Preferred Fulfilment Vendor, so that it can digitally package and distribute content on Amazon Prime Video.
After what’s been a difficult time for the market post-Covid19 and the Hollywood strikes, Zoo stated that it was seeing a “marked increase” in discussions about new projects. These were at “a level greater than at any time over the past two years.”
That said, it was predicting that dubbing revenues for FY26 will be lower than in FY25.
“However, with a lower cost base and higher margin revenue mix the overall profitability of the business is expected to improve significantly year on year.”
