ZOO Digital Delivers Improved Profitability Despite Revenue Drop in Interim Results

ZOO Digital Group PLC (LSE:ZOO) released interim results for the six months to 30 September 2025, reporting a 19% decline in revenue to $22.4 million. Despite the top-line pressure, the company delivered an 18% uplift in adjusted EBITDA to $2.0 million and reduced its operating loss to $1.2 million, supported by a comprehensive cost-rationalisation programme and continued growth in media services. Cost-saving measures are now fully embedded, contributing to stronger gross margins and a positive cash EBITDA position. The business has also expanded its use of AI across workflows to improve efficiency and quality, and introduced a premium Fast Track service to speed up dubbing and subtitling turnaround times. Management remains optimistic about building market share and returning to revenue growth in FY27 as it strengthens customer relationships and broadens its international footprint.

ZOO Digital’s outlook remains constrained by ongoing financial challenges, including negative profitability and cash-flow pressures. Technical indicators lean neutral to slightly bearish, while valuation concerns persist due to negative earnings and the absence of a dividend. Limited insights from recent earnings calls or corporate events further temper visibility.

More about ZOO Digital

ZOO Digital Group PLC provides cloud-based localisation and digital media services for the global entertainment sector. Founded in 2001, the company operates from hubs including Los Angeles, London, and Dubai, serving major Hollywood studios and leading streaming platforms such as Disney, NBCUniversal, HBO, and Paramount. Its offering spans dubbing, subtitling, captioning, and media processing, supported by proprietary technology and a worldwide freelance network.

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