ZOO Digital Group plc (AIM: ZOO), a leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry, will hold its Annual General Meeting (AGM) at 5.00pm BST today. At the meeting, Gillian Wilmot, Chairman, will make the following statement:

“The streaming industry continues its transition following strategic realignments and the strikes of 2023. Recent months have witnessed the early stages of recovery as major US media organisations have enacted their plans to adjust for a future in which traditional linear television plays a diminishing role. While many productions that resumed following the strikes have since been completed and distributed to global audiences, changes made in the mix of content types acquired and capital allocation policies, which are more strategic in nature, will take a longer period to yield results and restore levels of industry output to those seen in 2022, particularly in Hollywood.

“Against this backdrop ZOO has seen a strong recovery in its pipeline over the first half of FY25 and expects to deliver sales in the period of at least $27 million, equating to a 28% increase over the equivalent prior year period and 42% up on the previous half. As previously stated, the Board expects EBITDA profit in the first half.

“Market participants anticipate the industry’s recovery continuing until late 2025 which is consistent with the indications ZOO has been provided by its customers.

“The Board continues to be confident that the changes arising from the realignment of ZOO’s major customers will, in due course, be favourable for the Group. These include accelerated transition to an end-to-end approach with fewer, more capable suppliers; an increasingly diverse mix of original international content with a shift to episodic over feature titles; and greater dependence on ZOO’s software platforms, all of which will be advantageous to the Group.

“The Company continues to manage its cash position carefully whilst protecting production capability and capacity to satisfy the demand of its customers. As a result, the unaudited cash balance as at 30 September 2024 is expected to exceed $2 million.

“Visibility extends only to January 2025, as is normally the case for the ZOO business, however, the Board expects further profitable progress that will put us on track to meet market guidance for the full year ending 31 March 2025.”

Presentation slides that will accompany an investor update following the AGM will be available on the Company’s website later today. Shareholders may register to join a live stream of the AGM, investor briefing and Q&A here: https://www.zoodigital.com/agm-2024.

The Company intends to announce its unaudited interim financial results for the six months to 30 September 2024 in November 2024.