Strong H1 FY22 results
We published a strong set of H1 FY22 results on 10 November 2021, with increased revenues and profitability powered by demand for subtitling and media services. ZOO is benefitting from structural tailwinds as our end-to-end service offering supports streaming platforms to launch in new territories and roll out global content.
Key highlights from the year:
- Revenues increased by 64% to $26.9 million (H1 FY21: $16.4 million)
- Adjusted EBITDA up 82% to $2.4 million (H1 FY21: $1.3 million), reflecting strong revenue growth and operational gearing
- Operating profit of $0.4 million (H1 FY21: loss of $0.1 million)
- Cash balance of $8.2 million at period end (H1 FY21: $2.1 million), benefitting from the $10.3 million placing in April 2021 to fund accelerated growth
- Conversion of 7.5% unsecured convertible loan stock – removed the main borrowings of the Group and associated interest payments
- Extended ZOOstudio platform further and secured a new customer deployment
- Media services grew by 142% due to a high volume of work in preparing catalogue titles for release on streaming platforms
- Localisation grew 30% as new productions resumed in Q2
- Freelancer network grew to 9,752 (H1 FY21: 8,272, +18%)
- Established mastering team, launched new service and secured first customer
- Launched global growth initiative with investment to establish ZOO Turkey
Stuart Green, ZOO Digital’s CEO, commented:
"Structural tailwinds and our end-to-end services powered by our proprietary systems have fuelled very strong revenue growth while back catalogue work surged as streaming globalises. More recently new production work returned and reached pre-pandemic levels in August.
"We are building on our international capability through partnering and investing in regions of the world where the strongest growth is anticipated. The launch of ZOO Turkey has already strengthened our MENA operations and discussions are underway in further territories to ensure that we are best placed to enhance our offer and grow market share.
"This is our time. We are but one of a handful of players that can meet client needs through our market leading approach. We are confident of strong growth for the foreseeable future. We are currently building increased capacity to accelerate sales and making great strides toward our medium term target of $100 million.”
Looking ahead, we have a strong order book across all service lines with good visibility for H2 and a pipeline of work from established, satisfied customers. The new mastering service and international expansion provide additional revenue streams and scale. The Board will continue to invest in expanding capacity to support and increase in market share in H2 and FY23, which is expected to generate increased profitability in future periods.
