Zoo Digital Share Discussion Threads

[saltaire111] 20/4/2021 07:33

Revenue ahead of expectations! Nice.

Salty

[uknighted] 20/4/2021 07:14

RNS

ZOO DIGITAL GROUP PLC

("ZOO", the "Group" or the "Company")

Trading Update

Accelerated Growth

ZOO Digital Group plc (AIM: ZOO), the leading provider of end-to-end cloud-based localisation and media services to the global entertainment industry, today provides a further update regarding its trading for the financial year ended March 2021.

Revenues for the full year are now expected to be $39.5 million (FY20: $29.8 million), an acceleration of growth over the prior year of 33% and ahead of previous management guidance of at least $38 million. EBITDA (adjusted for share-based payments) is expected to more than double from the prior year to approximately $4.5 million (FY20: $2.1 million). Net cash on 31 March 2021, prior to the receipt of proceeds of the recent share placing, was $2.9 million (FY20: $0.7 million) reflecting strong cash generation and tight management of costs.

The past year has seen an accelerated evolution of the entertainment sector as the pandemic temporarily stalled the production of new titles and consumer take-up of on-demand streaming services has grown considerably. Some film and TV productions have started to resume and the second half of calendar year 2021 is expected to see the completion of significant numbers of new titles.

Several direct-to-consumer streaming video services are now available from leading US media organisations, all of which are expected to be offered internationally in local languages in due course. A number of these platforms are investing heavily in international series that will also require localisation into multiple languages. These factors, together with ongoing initiatives to repurpose large back catalogues of content for distribution through streaming platforms, are creating positive industry dynamics and structural drivers for ZOO.

Recognising the significant opportunities that lie ahead, ZOO has accelerated its investment in its technology, infrastructure and service capacity, and has already taken steps to grow its international footprint. To support this, the Company completed a successful, oversubscribed fundraising of GBP7.4 million ($10.3 million) on 31 March 2021 with existing and new institutional and other investors.

Trading in the first weeks of the 2022 financial year has been strong with a significant pipeline of customer projects committed for Q1. With a robust pipeline and continued momentum, the Board remains confident in its ability to deliver profitable progress in FY22.

[robow] 09/4/2021 12:44

very quiet here considering the rise

[uknighted] 09/4/2021 08:16

2 Holdings RNS. 1 increase, 1 decrease.

[verulamium] 08/4/2021 21:04

The RNS about Herald's holding means they've still got the same number of shares. They didn't pick up any more in the placing, so reduced percentage.

[amt] 01/4/2021 07:51

I watched the video. So 3% is current market share. If they become the dominant player in say ten years then revenues of hundreds of millions and a market cap of billions possible. So its back on my ten bagger list from here but on a 5 to 10 year timescale as a possibility if all goes to plan.

[verulamium] 31/3/2021 13:14

If you're not in an English speaking country (as a first language) presumably the locals are choosing the local language subtitles not English ones. If they went the dubbing route, the series would either have to be available separately in the different languages (clogging up their listings and servers) or would only be available dubbed into the local language (so English speakers would still need to use subtitles). Or am I getting the wrong end of the stick?

[verulamium] 31/3/2021 11:13

I think if ZOO went to Netflix and said "just a thought, why don't we dub instead of subtitling for country X", they'd be laughed out of the room with a "we'll do our job, you do yours". Don't worry, Netflix will already have thought of that. It might well be that a dubbed version is already available to them, but they're choosing not to use it. Apparently Poland prefer dubbing to subtitles, and their dubbing usually involves one actor doing all the voices. Perhaps they prefer it for comedic effect?

[shaker44] 31/3/2021 11:04

I am not in UK but in a country where spoken English is more readily understood than reading.
It may not be 'up to zoo' but I assume they promote the benefits of their products to drive change!

[verulamium] 31/3/2021 10:53

Just to add, ZOO might well already have done an English dubbed version of the series you're watching, but it will probably be American English. Showing that in the UK would go down a storm...even US documentaries are often revoiced for UK broadcast, and vice versa.

[verulamium] 31/3/2021 10:49

Films are either dubbed or subtitled according to a country's traditional preference. The UK is seen as a subtitling country. Obviously this might change over time (my son can't be bothered with subtitles, I much prefer them to dubbing). Ultimately it won't be Zoo who drive the change.

[shaker44] 31/3/2021 10:06

I watch netflix series a lot and those made in other languages are subtitled in English rather than dubbed, which I find irritating! Surely a Zoo opportunity?

[heialex1] 31/3/2021 09:52

Absolutely. Seems to have been well received which is encouraging

[vprt] 31/3/2021 08:18

As a holder (of just a small stake) I am OK with this placing - some dilution but more firepower to go after the growth which is materialising, and a more robust balance sheet. The following is the most important part of the announcements; a trading update sounding very upbeat indeed e.g. "accelerating momentum":

"Current Trading and Outlook

The Directors continue to see accelerating and improving momentum within the business, with current market conditions presenting a unique opportunity to seize market share as the competitive landscape undergoes structural adjustment. While the Company continues to benefit from the migration of back catalogues to streaming, the demand for new content is growing and when new title production resumes in earnest, the Board anticipates there being greater demand for ZOO's services.

The Board reiterates its guidance given in the announcement of 26 January 2021 that revenues for the full year are expected to be at least $38 million (FY20: $29.8 million), an acceleration of growth in the second half over the first half of 32 per cent."

[macc1] 31/3/2021 08:12

Video with CEO Stuart Green about the placing & an up-to-date overview of the company.

[amt] 31/3/2021 07:17

Yes very good price and only 10% dilution.
100m usd sales should give GM of 30m and profit between 15m and 20m. In 4 or 5 years.
On pe of 20 that's market cap of 300 to 400m usd in 4 to 5 years.
So potential to increase share price 3 fold over the next 5 years in my view. DYOR
I suspect the share price will go up a little on such good news and flat line after that for a while.
Most encouraging is the rapid growth in sales.
Dubbing coming through now at last.

[mikemichael2] 30/3/2021 17:16

"Providing general working capital"

Oh dear, big drop tomorrow.

[shaker44] 30/3/2021 17:15

V impressed they are getting the placing away on such a tight price.
Looks v positive

[uknighted] 30/3/2021 16:40

Placing RNS


The Directors intend to use the net proceeds of the Placing (the "Proceeds") to accelerate the Company's commercial position by building balance sheet strength in order to further scale the Company's business by:

-- Growing the R&D team including establishing a longer range research function
-- Establishing regional hubs for media services (India, South East Asia)
-- Expanding international business development
-- Expanding the service delivery teams
-- Increasing capital expenditure
-- Providing general working capital.

[uknighted] 25/3/2021 22:36

ZOO Tweet today:

Tapping into our health check and #localization services, the project covered 13 languages and over 780,000 items of localized metadata! 💪

How ZOO helped ready hundreds of thousands of files for the streaming service’s European launch: bit.ly/3cjLnUy

[gbh2] 23/3/2021 09:04

Looking more like 100p atm.

[amelio] 17/3/2021 09:51

First stop 140