Hollywood demand boosts Zoo Digital

Stuart Green, chief executive of Zoo Digital
Stuart Green, chief executive of Zoo Digital
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​Z​oo​ Digital, which provides subtitles for Hollywood film studios,​​ ​said growth has continued in its second half and it now expects to report full year revenue of at least ​£20m, up from £12m in 2017.

The Sheffield-based group said​ it has steadily increased the number of quality voice actors and dubbing professionals ​to meet demand.

The firm said ​its growing reputation in the market is helping ​it engage with these professionals, enabling services to be fulfilled across a growing number of languages.

Zoo expects to report adjusted earnings of at least £1.7m in the year to March 31, up from £1.3m the year before.

The ​g​roup ​said it ​was also encouraged by the level of industry feedback and acclaim that ZOOdubs and the associated dubbing service achieved at the NAB show in Las Vegas, held ​earlier this month. ​It said t​he level of interaction with senior individuals from major players within the industry and the resulting enquiries underlines the confidence that the ​b​oard has in the ​g​roup’s long-term opportunity, particularly in respect of its localisation services.

​Stuart Green, chief executive of Zoo, said: “We are pleased to confirm guidance for the full year results. We continue to see momentum in the business, driven by our localisation services, and remain optimistic for the future.” ​

​Analyst Andrew Darley at FinnCap said: "The localisation services, delivering ZOOsubs and ZOOdubs, deliver significant degrees of efficiency which continued to stimulate Z​oo​’s reputation, evidenced by the industry award winning presence and associated buzz at NAB in Las Vegas.

​"​In turn this has driven customer demand – with consequent capacity for engagement with increasing numbers of voice actors and dubbing professionals, hence a virtuous circle in languages, territorial reach, and attractiveness to major customers for whom Z​oo​ is a one stop service provider.

"With such increasing evidence of successful execution and highly enviable growth, we review our 12-month target price to 116p in anticipation of continuing extraordinary growth driven by the demand from the biggest names in the target client base, including the best known household names, both studios and online content platforms.​"​

​Given the importance of localisation services, the ​g​roup intends to re-classify the costs of the internal staff responsible for fulfilling client projects as a cost of sale rather than as a central overhead as previously​.

The ​b​oard believes that this will be more representative of the ​g​roup’s trading and will have no effect on the reporting of its overall profitability.

The ​c​ompany ​said that the process for appointing a new ​c​hief ​f​inance ​o​fficer is ongoing. ​

Z​oo​ expects to publish its full year results in the week commencing July 2.