Technology firm Zoo Digital has upped forecasts after seeing significant growth in its key entertainment market.
The Sheffield firm, which provides localisation and media services to the global entertainment industry, has provided a trading update for the financial year ending March 31 which says revenues for the year, previously forecast at around $65m (£51m), are now likely be around $70m (£55m).
The company said that its Ebitda, adjusted for share-based payments, is also expected to be ahead of the previous expectations at around £8m (£6.3m), an increase of approximately 78% on the prior year. Zoo’s net cash on March 31 was $5.4m (£4.2m), which it said reflected its strong cash generation despite significant investment to expand capability and underpin future revenue growth.
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Zoo said it would provide a further update on its outlook for the FY23 financial year with its full year results on July 6.
Chief executive officer Stuart Green said: “It has been an outstanding year for Zoo with growth materially above expectations, with our last quarter being a record period. We continue to benefit from streaming launches in new territories around the world, while also increasing market share through new service offerings and seeing strong demand from customers across all of Zoo’s operating segments.
“The board has invested heavily in capacity to support further growth and the group has expanded its international footprint in regions that are strategically aligned with our major customers. With a strong pipeline of projects in place, we are confident of delivering further sustainable growth in the year ahead.”
Earlier this year, Zoo launched a subsidiary in Denmark to spearhead its push into Scandinavia. The move followed other launches in Turkey, South Korea and India, with further announcements expected this year as part of Zoo’s global growth strategy.
