Revenue down but profit up at Sheffield's Zoo Digital
Sheffield’s Zoo Digital has announced a 4% drop in revenue to $14.2m for the six months to 30th September 2019, although gross profit up at $5.8m from $4.9m.
The fall in revenue was down to a 75% drop in legacy DVD and Blu-ray services. Excluding these services - which account for 3% of overall group revenue - revenues were up 7% to $13.8m thanks to strong demand for digital packaging and subtitling.
Adjusted EBITDA at the subtitling software firm was $1.8m.
A Zoo Digital spokesperson said: "The value of the order book at the period end is stronger than the same period last year and positions ZOO well to meet market expectations for the full year."
Stuart Green (above), CEO of ZOO Digital, added: "We are pleased with the progress we have made during the period, having met all operational targets in respect of our strategic priorities.
"We are now a primary vendor of localisation and digital packaging services for a major new OTT platform and have achieved the first customer deployment of ZOOstudio, our localisation management platform.
"The OTT consumer video market is about to undergo a step change due to the forthcoming launches of several Direct-to-Consumer services from major media companies.
“These provide an exciting growth opportunity in media localisation and digital packaging given the increased demand for these services to enable international distribution. We believe that ZOO is well placed to capitalise on this opportunity given the benefits and competitive advantages of our cloud-powered services."