ZOO Digital Roars Like a Lion in Latest Reporting Figures

ZOO Digital Group (LSE:ZOO) released a trading update today in advance of its reporting of final figures for the year ending March 31st. Share prices on the LSE were up over 20% by early afternoon.

Report Highlights

• Total sales for the year are expected to be $11.2 million.
• Operating profits of $0.2 million (£125,000) in the second half compared to a loss of $0.4 million (£247,000) in the first half. The company cites the increase in the amount of production using the Blu-ray and eBook software as the chief reason for the boost in sales volume.
• Underlying earnings for the second half were $1.0 million (£618,000)
• The second half upswing will not be quite enough to offset the first half slowdown, as the company is expecting a year end operating loss of $800,000 (£495,000).
• Year end earnings before interest, taxes, depreciation & amortization (EBITDA) are expected to be $600,000 (£372,000)

Corporate Comments

CEO Stuart Green said, “We are pleased to report a stronger second half of the financial year. 2011 was a very difficult year for the home entertainment industry due to the significant changes that have taken place in consumer markets. The innovation and diversification within our business has helped ZOO to broaden its offering into complementary markets and we believe that the business is in a strong position to take advantage of growth in a number of areas.”

Company Spotlight

ZOO Digital Group provides patented, cloud-based software, as well as support services, to various international companies in order to assist them in creating, editing, and distributing creative media. The company’s software allows for quicker and more cost effective adaptation of audio-visual and printed materials to be adapted to different languages and formats than previous methods. Larger companies, such as Hollywood studios, may take advantage of ZOO’s software suite on a pay-per-use basis. Other clients may prefer to use ZOO’s production facility to complete the needing reformatting.

References
↑ Official Company History
↑ Proactive Investors
↑ Company Overview

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