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title: ZOO Digital | The Big Picture Newsletter
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Our quarterly investor newsletter featuring trade announcements, ZOO news and relevant industry developments.

| View in browser WELCOME TO THE BIG PICTURE   Our quarterly investor newsletter featuring the latest news from ZOO and updates from across the global entertainment industry. FY25 revenues to be up 24% to at least $50.5 million with return to EBITDA profit of at least $1.0 million   TRADING UPDATE – FEBRUARY 2025 FY25 revenues to be up 24% to at least $50.5 million with return to EBITDA profit of at least $1.0 million Reduced fixed costs by 20% and expect blended gross margins to improve to 36% Cash at end of FY25 to exceed c.$1 million, with invoice discounting facilities of $3m and £2m expected to be largely unutilised While we are disappointed that the results are expected to be below market expectations, we have managed our cash position closely and implemented targeted cost saving measures. This provides a strong platform to return to cash breakeven.   Read the full trading update ANALYST NOTE: PROGRESSIVE EQUITY RESEARCH Strong platform to return to cash breakeven   “Although the order book has improved, several high-value projects secured in January and February will not impact FY25 results, coupled with some anticipated FY25 projects relating to titles that have been delayed or cancelled. ZOO’s clients continue to realign business models to generate profit and cash, resulting in unpredictable workflow patterns and revenue mix in the short term.   “We therefore trim our estimates for FY25 and FY26. ZOO has gained orders from additional significant clients, which diversifies its revenue base. Even at current run-rates, the group is adjusted EBITDA positive. Given the lower cost base and higher-margin revenue mix, we forecast that the overall profitability of the business will improve significantly in FY26. We await further news at the FY25 pre-close update in April.”   Read the full research note:  Progressive Equity Research LICENSED CONTENT MAKES A COMEBACK Broadcasters have been syndicating third party content for decades to expand and vary the appeal of their programming. Since the launch of their own Direct to Consumer offerings, major media companies have become global “broadcasters” through their streaming platforms. For these companies, licensing took a back seat in recent years as they prioritised original content to attract subscribers and differentiate their services, however the approach is once again becoming more commonplace across the industry. Global streaming services have resumed licensing of their content to others to generate incremental revenues, and are sourcing more third party content for their platforms to expand their offerings at a lower cost and risk compared with the creation of originals.   “After four years of major studios employing a walled-garden approach to the distribution of their TV content on streaming, licensing is steadily making a comeback.” Ampere Analysis, 2024   This trend is reflected in ZOO’s order book. As announced in our February trading update, an enlarged proportion of customer assignments currently relate to them both licensing in third party content and licensing out catalogues, rather than the processing of new original programming. The Board envisages that this will be an ongoing trend, with the additional volumes of original content starting to recover later in FY26. For streaming companies, this approach can be more cost-effective than producing purely original content, adding more diverse content to their platforms while managing production costs more efficiently. For ZOO, there is little impact whether it is new or licensed content – these titles have the same requirements to be adapted and prepared for global distribution in any language. ZOO SELECTED AS PREFERRED FULFILMENT VENDOR FOR AMAZON PRIME VIDEO   ZOO is proud to have been selected as a Preferred Fulfilment Vendor (PFV) for Amazon Prime Video’s Preferred Vendor Services Program. This certification positions ZOO among a select group of vendors that production companies may use to digitally package and distribute content on Amazon Prime Video. It is intended to optimise the delivery process, while rigorously ensuring that the quality of media content aligns with Amazon Prime Video's standards.   This latest partnership reinforces ZOO’s reputation as a trusted partner to the global entertainment industry, extending the reach of compelling stories to audiences worldwide.   Read the full announcement   ZOO IN THE NEWS   Broadcast Now: Prime Video names ZOO Digital as a preferred supplier   Advanced Television: ZOO Digital named Preferred Fulfilment Vendor for Prime Video   Prolific North: Sheffield digital media and localisation specialist lands Amazon Prime preferred vendor status   Multilingual: ZOO Digital Selected as Preferred Fulfilment Vendor for Amazon Prime Video   BusinessCloud: ZOO Digital returns to profit on back of turnover jump   The Yorkshire Post: ZOO Digital: Yorkshire subtitling firm expects return to EBITDA profit   INDUSTRY NEWS   Streaming-market deep dive from equity research company MoffettNathanson   Content spend in 2025   Global content production and consumption   Trajectory of the global film industry   Netflix achieves record growth   Another profitable quarter for Disney+ and Hulu   Paramount-Skydance Merger Clears SEC And EU     ZOO Digital Group plc, 2201 Park Place, Suite 100, El Segundo, California 90245, United States Unsubscribe Manage preferences |
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