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LONDON - ZOO Digital Group PLC (AIM:ZOO), a provider of localization and digital media services to the entertainment industry, announced a trading update for the financial year ending March 31, 2025. The company expects to report a 22% increase in revenue to $49.4 million, with adjusted EBITDA of at least $0.1 million, marking a significant improvement from the previous year’s $13.6 million loss.
The company’s net cash position as of March 31, 2025, was $2.6 million, surpassing expectations due to stringent cash management and working capital controls. ZOO has also not utilized its invoice discounting facilities, which remain available for future needs.
In response to challenging market conditions, ZOO has undertaken a proactive restructuring of its costs, achieving $6.8 million in annualized fixed cost savings during the fiscal year 2025. These savings have been attributed to reductions in personnel, property, and legal and professional expenses. The company plans to implement an additional $1.7 million in cost savings in the fiscal year 2026, with a focus on personnel and IT expenditure.
ZOO’s cost-saving measures include leveraging offshore investments to reduce fixed costs and adopting AI technologies to streamline operations. The company aims to become profitable and cash-generative on a lower revenue base while maintaining the ability to scale efficiently with potential market recovery.
The entertainment industry has faced significant disruptions, including strikes by Hollywood writers and actors. ZOO anticipates that its customers will continue to license more content, leading to larger, but less predictable, project revenues in the fiscal year 2026. The company is also monitoring the potential impact of the US government’s proposed 100% tariffs on films made outside the United States, which may affect both ZOO and its clients.
CEO Stuart Green emphasized ZOO’s commitment to reshaping the business for sustainability and profitability in the current market and its readiness to adapt to evolving industry dynamics.
The company has also announced the appointment of a new CFO, further strengthening its leadership team.
This trading update is based on a press release statement from ZOO Digital Group PLC.
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