---
title: ZOO Digital | The Big Picture Newsletter | Q4 2021
---

 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 interim results.     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.   “There’s always someone working on some kind of tool or product that will fix that situation or make things easier for our teams or the client. The team here actively looks for the roadblocks, so they can remove them.” Melissa McAllister – Director of TV Mastering and Servicing, ZOO Digital ZOO News Launch of mastering services division strengthens end-to-end service offering and provides additional revenue source During the quarter, we announced the launch of our new mastering services division to support leading content creators to deliver for next day air on major streaming services and platforms. Mastering is the process of finishing or finalising a programme after post-production to synchronise the video and audio tracks, conform to technical requirements of the target platforms, and perform compression and encoding of the audio-visual materials. Led out of ZOO’s Los Angeles facility, we will provide mastering for both UHD and HD content, including next day air servicing for content on major streaming platforms. CEO Stuart Green said: “The launch of a dedicated mastering service is the natural progression in our end-to-end client offering and positions ZOO to benefit from a potentially significant future revenue stream. The biggest names in entertainment are dealing with more languages, more platforms, and more audiences, so having a vendor that can offer both multi-language localisation and media services means greater efficiency, fewer delays, and simplifies the challenge of taking a project from post-production to platform." The new division will be led by ex-Fox Filmed Entertainment, Melissa McAllister, who has joined the Company as Director of TV Mastering and Servicing. Read more about Melissa’s background and why she believes now is the right time for ZOO to offer mastering services in this Q&A.   Read more   ZOO News Global growth initiative gets underway with the launch of ZOO Turkey Accelerated growth in international distribution of regional content, alongside the launch of new global direct-to-consumer platforms, continues to generate strong demand and opportunity for ZOO's globalisation and media services. In order to align with our clients' current and future objectives in fast-growing territories, we are finalising investments to expand our geographic footprint in key content sourcing and distribution locations. Having set out the rationale behind our global growth initiative, in November we announced the first phase with a strategic investment in Istanbul-based media localisation company ARES Media (an operational partner since 2017). ZOO Turkey will provide major content creators and global streaming services with an enhanced offering in the MENA region and enable us to secure new talent across our key markets. Ender Albayrak, President, ZOO Turkey, ARES Media, commented: "We are proud to officially become part of the global ZOO family. Our two companies have worked successfully together for a number of years and now ZOO Turkey can bring even more technology-backed services to clients, both in MENA and globally." We are now finalising investments to expand our geographic footprint in other key content sourcing and distribution locations, namely Korea, Thailand, India, Japan and Malaysia.   Read more   Stay in the loop Interims Presentation Read our presentation for interim results FY22. Learn more Global Growth ZOO announces global growth initiative to support entertainment industry. Learn more Mastering Services Melissa McAllister joins as director of TV mastering and servicing to lead the division. Learn more Mixing with the Best Get up to speed with some of the biggest names in mixing. Learn more ZOO news Annual report published AGM statement Resolutions passed Loan note conversion #1 Loan note conversion #2 Singer Capital Markets initiates coverage Global growth initiative ZOO Turkey launch   ZOO in the news Dubbing partnerships 101 reasons to invest Global growth strategy Mastering services Accelerating demand (includes video interview) ZOO grows 64% Mixing with the best     Industry updates Disney+ subscriber growth Comcast and ViacomCBS announce “SkyShowtime” Netflix offers free tiers HBO Max in Asia and in Europe Lost in translation Subscription Video on Demand growth Streaming content spend to hit $250bn Disney spend on content 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 |
| --- |