ZOO Digital, the localization and digital media services partner to the global entertainment industry, announces its audited financial results for the year ended 31 March 2025.

Stuart Green, CEO of ZOO, commented:

“ZOO has shown resilience through a period of market transition and made significant progress to restructure its operations to position the Group to deliver operating profit and cash generation in FY26. I believe we have struck a balance between creating a sustainable platform for the future while retaining the flexibility to scale as we deliver increased order volumes.

 “As a trusted partner, with a technology-enabled, end-to-end model, we can build solutions for customers’ specific needs. Our new Fast Track service, tailored for localising live and near-live content, has been well received and although revenue is modest at this stage, the Board is encouraged by the potential growth opportunity this presents the Group as we seek to increase our share of spend by several global streamers over the longer term.

“Today we believe most media companies are operating profitable streaming platforms, supported by new content formats and monetisation models. We enter FY26 better positioned to navigate this environment and capture profitable revenue opportunities as the market continues to evolve.”

HIGHLIGHTS

Key Financials

• Revenue increased by 22% to $49.6 million (FY24: $40.6 million).
• Adjusted EBITDA¹ returned to a profit of $1.1 million (FY24: loss of $13.6 million).
• Operating loss of $6.5 million (FY24: loss of $19.1 million).
• Reported loss before tax of $8.3 million (FY24: loss of $20.5 million).
• Gross cash at year-end of $2.7 million (FY24: $5.3 million) with no amount drawn on the invoice financing facilities; strong focus on cash management.

Operational Highlights

• During the period, $8.4 million of annual fixed cost cash savings were delivered (including $1.6 million of capitalised R&D costs), and further actions implemented in FY26 that the Board expects will deliver at least a further $2.5 million of annual fixed cost savings, highlighting the Company’s focus to be profitable and cash generative.
• Retained sales² of 98.4% (FY24: 92.3%), demonstrating recovery in demand and customer satisfaction.
• Strengthened relationships with non-traditional studios to support customer diversification.
• ZOO named a Preferred Fulfilment Vendor for Amazon Prime Video.

Current Trading and Outlook

• Current reduced demand for dubbing led to FY26Q1 revenue 18% lower than the same period in FY25.
• Service lines excluding dubbing have generated three consecutive quarters of revenue growth to FY26Q1.
• Continuing cost reductions resulted in an EBITDA profit for FY26Q1 after restructuring costs in line with management expectations.
• The combination of the implementation of AI and other forms of automation, together with the operational efficiencies delivered in FY25 and continuing in FY26, provide a leaner operating model to enable enhanced margins as revenues recover.

¹ Adjusted EBITDA means earnings before interest, tax, depreciation, amortisation and share-based payments.

² Retained sales represents the proportion of client revenues retained from one year to the next and provides a quality indication that helps to assess customer satisfaction.