Profits up at Sheffield-based Zoo Digital despite revenue slump

Zoo Digital
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Sheffield-based Zoo Digital saw its revenues fall by 4 per cent to $14.2 million driven by a 75% drop in legacy DVD and Blu-ray services,

DVD and Blue-ray now make up 3% of overall Group revenue but, excluding DVD/Blu-ray services, revenues were up 7% to $13.8 million driven by strong demand for digital packaging and subtitling

Gross profit was up at $5.8 million from $4.9 million with and an adjusted EBITDA of $1.8 million.

In recent months Zoo was selected as a primary vendor of localisation and digital packaging services for a major Over-The-Top (OTT) platform and it adopted by a major media company to manage its localisation operations for OTT production.

A 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, CEO of ZOO Digital, commented: "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."