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title: ZOO Digital | The Big Picture Newsletter | Q2 2022
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 Welcome to our quarterly investor newsletter featuring trade announcements, ZOO news and relevant industry developments.

| Not rendering correctly? View this email as a web page here. The Big Picture Investor Newsletter   Welcome to The Big Picture   Our quarterly investor newsletter featuring the latest news from ZOO and updates from across the global entertainment industry.       Click below to watch this quarter's review     An outstanding year of growth   It has been an outstanding year for ZOO with growth materially above expectations. In April, we released a pre-close trading update for the year ending 31 March 2022 which included our eighth upgrade to consensus FY22 forecasts. FY22 revenue is expected to be approximately $70m, a significant acceleration of organic growth over the prior year of 78% EBITDA (adjusted for share-based payments) is expected to be materially ahead of the previously upgraded expectations at approximately $8 million, an increase of approximately 78% on the prior year Net cash at year end on 31 March 2022 was $5.4 million, which compares with $2.9 million at the same time last year – this reflects strong cash generation despite significant investment to expand capability and underpin future revenue growth     Stuart Green, ZOO Digital’s CEO, commented:   "We continue to benefit from our customers launching streaming platforms in new territories around the world, while also increasing market share through new service offerings. As we enter our new financial year, we are seeing strong demand from customers across all our operating segments and are confident of delivering further sustainable growth in the year ahead.” Dates for your Diary 26 May ZOO Digital presenting at MELLO 2022 6 July ZOO Digital Full Year Results ZOO News   ZOO is a beneficiary of increased competition among streaming services     The latest subscriber numbers disclosed by Netflix in a recent earnings call has highlighted the increased competition from new streaming launches and the increasing saturation of the North American market. This is leading to two key themes that underpin increased demand for ZOO’s services:   Investment in content  Streaming platforms must deliver more high-quality content to attract and retain customers. Ampere Analysis, a data and analytics firm specialising in the media sector, reported recently that spend on new original content across the industry grew to $220 billion in 2021 and forecasts further growth in 2022. The competition between streaming companies is more likely to fuel this growth than to curtail it.   Investment in new regions To justify their substantial content spending, streaming companies must amortize this cost across subscribers around the world and focus on growing their subscriber bases in new territories. This requires the localisation of content into many languages and the creation of new content appropriate for the new geographic audiences.   The fact that ZOO works with all the major services and media companies makes us a beneficiary of this competition in the consumer market – we are one of the few providers capable of providing the scale and end-to-end offering that is required.       ZOO News Global expansion sees three new hubs in fast-growing regions     We continue to scale and build capacity in key growth regions to support the requirements of our clients. In addition to Turkey, we’ve now also launched regional hubs in India, South Korea and Denmark.   India – acquisition of Vista India India has a vibrant film and TV industry, and the rapid adoption of streaming makes it a high growth and strategic market for ZOO's clients. The country’s OTT (Over-The-Top) revenue is predicted to grow from $1.9bn in 2021 to around $4.5bn by 2026 and its SVOD (Subscription Video on Demand) subscribers are expected to more than double by 2026 to 224 million. South Korea – strategic investment in WhatSub Pro Global hits like Squid Game - the most-watched Netflix show in more than 90 countries - have highlighted the international appeal of Korean content and the value of local content to streaming companies building their presence in new markets. Having launched in the region last November, Disney+ has announced plans to create more than 50 Asia Pacific original productions by 2023, while Netflix has reported having spent more than $1 billion on original Korean programming since 2015, including $500 million in 2021 alone. Denmark – new Nordic hub for localisation services Scandinavia has built a reputation for high-quality content with global appeal, making it an important region for ZOO’s clients. The new Copenhagen facility will be utilised by a growing network of dubbing talent, helping to meet the capacity needs of the industry and support a significant and widespread audience demand for localised content into the region.   Read more about our latest global hubs     Stay in the loop Making life easier for the people who entertain the world ZOO Digital is the partner that makes globalization easier for the world’s best content creators – building a world where talent and technology combine to solve challenges today and in the future. A world where people look at things differently to anticipate what’s next. A world where globalizing content is smarter, easier and better. Read article   The Craft Behind Dubbing For Animation (The EGA Reteller Magazine) Animated content can bring magic to millions. A world full of characters and stories that capture the hearts and imaginations of audiences across the globe. This article will explore the craft behind dubbing for animation, delving into the pursuit of artistic and cultural integrity, consistency in vocal performances and age-authentic casting practices. Read article   ZOO in the news MESA – ZOO Digital appoints Ambrish Acharya as Head of Education Yorkshire Business Insider – ZOO a roaring success Slator – ZOO beats full year guidance, seen as a winner in streamer ‘land grab’ UK Investor Magazine – ZOO Digital raises expectations for 2022 BusinessLive – ZOO Digital increases earnings forecast after significant growth Broadcast – ZOO Digital opens India office with acquisition Prolific North – Sheffield’s ZOO Digital opens Korean operation in wake of Squid Game success Multilingual – ZOO Digital launches Denmark hub ShareProphets – Cash piles in for niche TV and film outfit with an animal instinct to grow     Industry updates Disney exceeds subscriber expectations for March quarter Disney+ adding ad-supported tier HBO Max and Discovery+ to be combined HBO Max and HBO hit 76.8m subscribers Peacock adds 4m subscribers Licensed content pulled from competing platforms  What’s behind the Netflix share price fall Fandom’s “State of Streaming” report Disney+ to launch in MENA Paramount+ sets international launch dates BritBox begins international rollout Amazon Prime doubles down on Indian market Step into a Brave ZOO World We are the partner that makes globalization easier for the world’s best content creators. ZOO Digital Group plc‌ ‌2201 Park Place‌ ‌Suite 100‌ ‌El Segundo‌ ‌California‌ ‌90245‌ ‌United States Unsubscribe Manage preferences |
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