(Correcting that the lower-than-expected revenue was for the company’s first quarter, not the full year.)
Zoo Digital Group PLC on Friday said trading in the first three months of the financial year has been affected by cost-savings measures and the ongoing strike at the Writers Guild of America.
Shares in Zoo Digital fell by 29% at 73.91 pence in London on Friday morning.
The AIM-listed provider of cloud-based localisation and digital distribution services said its revenue for the first three months to June 30 will now be lower than expected as a result.
Zoo Digital said this was due to cost-saving measures by its major streaming company clients. It added the Writers Guild of America strike, which is in its third month, has impacted levels of localisation and media services work on new titles.
Net cash at June 30 was $23 million, up from $11.8 million on March 31.
Looking ahead, Zoo Digital said it expects to be in an ‘even stronger position’ despite recent challenges as several of its customers have rationalised their supplier bases, selecting Zoo Digital as a vendor.
Zoo Digital added it expects to take on a further share of the media localisation market once business levels go back to normal, and anticipates revenue growth to return in the second half of financial 2024.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
