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Provider of cloud-based localisation and digital media services, ZOO Digital Group has reported reduced profit for the first half of its financial year, but with strong Q3 trading it is confident about its full-year performance.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell to $1.3 million from $1.8 million in the first half in the previous year, after the company had to increase its direct staff to deliver growth in H2.
Its cash balance was $2.1 million at the end of the second half compared to $0.6 million in the same period in the previous financial year.
Trading in the first few weeks of the third quarter has been strong, with revenue growth expected to be over 20% half-on-half. The company said the Covid-19 pandemic has hastened the pace of adoption of its technology-based, media service offering, which is becoming increasingly embedded into the operations of major studios and streaming services.
Stuart Green, CEO of ZOO Digital said: 'There remain significant volumes of back catalogue work, giving us confidence in our full year performance and we are very well placed to benefit greatly when content creation resumes. As a result, we have invested through this half year in order to take full advantage once conditions normalise. With a strong pipeline and continued momentum, the Board remains confident in its ability to achieve the increased market consensus for the full year.'
At 8:30am: (LON:ZOO) Zoo Digital Group PLC share price was +1p at 56.5p