ZOO Digital Share Price (ZOO)

Share Name	Share Symbol	Market	Type	Share ISIN	Share Description
Zoo Digital Group	LSE:ZOO	London	Ordinary Share	GB00B1FQDL10	ORD 1P

	Price Change	% Change	Share Price	Shares Traded	Last Trade
	-0.50p	-0.50%	99.00p	96,038	08:21:30
Bid Price		Offer Price	High Price	Low Price	Open Price
97.00p		101.00p	99.50p	99.00p	99.50p

Industry Sector	Turnover (m)	Profit (m)	EPS - Basic	PE Ratio	Market Cap (m)
Software & Computer Services	13.1	0.4	1.9	53.9	73.05

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ZOO Digital News

Date	Time	Source	Headline
29/5/2018	16:26	UKREG	Zoo Digital Group PLC Holding(s) in Company
25/5/2018	15:59	UKREG	Zoo Digital Group PLC Holding(s) in Company
09/5/2018	17:19	UKREG	Zoo Digital Group PLC Holding(s) in Company
25/4/2018	14:39	UKREG	Zoo Digital Group PLC Issue of Equity and TVR
23/4/2018	15:03	ALNC	Zoo Digital Revenue Increases As Localisation Services In Demand
23/4/2018	10:00	RNSNON	Zoo Digital Group PLC Initiation of Research and Attendance at Mello
23/4/2018	07:59	ALNCF	Alliance News Flash Headline
23/4/2018	07:00	UKREG	Zoo Digital Group PLC Year End Trading Update and Notice of Results
19/3/2018	17:05	UKREG	Zoo Digital Group PLC Holding(s) in Company
13/3/2018	09:02	UKREG	Zoo Digital Group PLC Holding(s) in Company

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Date	Time	Title	Posts
22/6/2018	17:12	ZOO Digital	5,705
24/4/2018	09:59	Zoo Digital Group Plc interview	-
27/6/2017	07:39	ZOOtech the rebirth....	6,910
26/9/2013	14:24	DOES ZOO LOOK LIKE A TEN BAGGER-CAN ANY OF YOU EXPERTS LET ME KNOW HERE PLEASE?	9,637
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ZOO Digital (ZOO) Most Recent Trades

Trade Time	Trade Price	Trade Size	Trade Value	Trade Type
16:25:01	99.00	30,000	29,700.00	O
16:09:19	99.00	147	145.53	O
15:13:20	100.40	1,593	1,599.37	O
14:58:12	98.05	1,000	980.50	O
14:57:31	100.49	15,000	15,073.50	O

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ZOO Digital (ZOO) Top Chat Posts

Date	Subject
22/6/2018 09:20	ZOO Digital Daily Update: Zoo Digital Group is listed in the Software & Computer Services sector of the London Stock Exchange with ticker ZOO. The last closing price for ZOO Digital was 99.50p. Zoo Digital Group has a 4 week average price of 94p and a 12 week average price of 88p. The 1 year high share price is 110p while the 1 year low share price is currently 9.63p. There are currently 73,783,655 shares in issue and the average daily traded volume is 238,826 shares. The market capitalisation of Zoo Digital Group is £73,045,818.45. Read Full Thread Reply
18/5/2018 22:03	martina pescatore: Personally, I really can see Zoo achieving revenues for the year 2018-19 in the range indicated, from circa $50M to $56M. But my opinion doesn't really mater a jot in reality. Even if the achieved revenues in the range from $40M to $45M and I was widely wrong, the growth in revenues would still be very good, YOY. The important thing for us, as investors, is what would this do to the value of the shares? What are the risks that Zoo only achieve revenues in the lower range ($40M to $45M) and not the upper range ($50M to $56M)? Would this be bad for today's share price? Would revenues in the lower range ($40M to $45M) likely result in a higher share price and mkt cap compared to toady's price? What are the risks and rewards associated with the lower range target and the upper range target. Obviously, the risks of hitting the lower range target are lower than the risks of hitting the upper range target, but the rewards are also lower. However, there would still be rewards, IMHO, as if revenues for the year 2018-19 were say $42.5M and Zoo had 15% EBITDA margin this would indicate EBITDA of circa $6.375M (£4.7M) and the company would be profitable clearly and cash generative. Let's say PBT of £3.5M and on a PE of 30 (too low with growth in excess of 30% IMO) this gives a projected mkt cap of £105M (140p per share with 75M shares in issue), ignoring cash in the Bank (nice to say that) and ignoring CLNs (these will likely be exercised/exchanged for shares at the agreed 48p and the debt will go as new shares are issued at some date in the future - 2019 I think - resulting in some dilution to shareholders but lower finance costs and therefore higher profitability going forward). IMHO, this is likely to be the lower end of my expectations for the current year, based on what we know to date and the clues and evidence in the market. I am happy with it, the risk:reward, that is. Put £3.5M on a PE of 40 and we have a projected mkt cap of £140M (186p per share with 75M shares in issue). This would be the next worst case scenario, in my projections. Pick any number of ranges and PEs and the options are endless, but the above is a starting point to give me as an investor an idea of the value (in my mind) of the shares that I hold or wish to buy today. I think the risk:reward is attractive. Notwithstanding the above, the fundamentals in the localisation market and the guidance and statements from the company all point to either good or very good / strong revenue growth, on an number of fronts (zoosubs and zoodubs) for at least a few more years yet, if the company continues to execute their business plan successfully. In respect of pricing, Stuart Green has said on the record that their customers/clients are requiring higher quality of service (subtitling and dubbing, for instance) and that this raising of the bar is increasing prices across the industry. Therefore, the perfect storm of increased demand and a shortage of supply, and increased quality and increased price levels surely means increased revenues for Zoo. Then add any competitive advantage they might have via their technological innovative approach, surely means strong revenue growth and strong profits growth. I could be wrong, however even the less strong growth, as indicated above, is likely to be rewarding for shareholders at today's prices? When we also consider that Zoo are still at a fairly low-mid starting point in respect of subtitling and at the start point for dubbing (it would appear), then there really is much growth to be had, in my opinion, especially when you consider the size of the markets and the way that the localisation market is moving/shifting. As always, NIA and DYOR Read Full Thread Follow Reply
13/5/2018 22:26	martina pescatore: In my post number 5564 on 10 May 2018, I got a reference number incorrect, it should have been 647 and not 547, creating the 19 increase in Zoo employee numbers on LinkedIn, at the new total of 666 on 10 May 2018. I note however that the LinkedIn Zoo employees number is now 673, showing continued strong growth, which I would be astonished if it did not result in continued strong revenue growth, if not even stronger revenue growth, than we have seen over the previous periods. The evidence is beginning to mount up once again, in my opinion. I don’t favour predicting price targets and timings, but the clues are indicative of a strategy which is being successfully implemented by the Zoo board and staff, creating a high likelihood of further strong share price appreciation in the months to come as we move towards the final results being released and the market being updated on trading to date. We know that the localisation market is massive and is growing strongly. We know that Zoo have a compelling and successful product and service in respect of zoosubs which is and has been growing strongly. We know that zoo have a new compelling product and service in respect of zoodubs which has only just scratched the surface of the dubbing market. We know that zoo currently work for all the major film studios and many major tv companies and the BBC. And now we can see the clear trend in the growth in the number of employees, many of whom will be freelance as per the company’s strategy for the next phase of building out the zoodubs capability. These are my thoughts anyway, but all looks very reassuring as a shareholder and investor in Zoo. NIA and DYOR Read Full Thread Follow Reply
09/4/2018 16:09	martina pescatore: Great post and analysis Mr T. We discussed and compared these two companies and their corresponding valuations a month or so back and the conclusion then was that either KWS was over priced or Zoo was underpriced, or perhaps a combination of the two. However, what interests me very much as a shareholder is value and from what I can glean is that Zoo could easily be priced at a higher ratio than KWS (in time, but how much time?) given the summary you have indicated above. The direction of the Zoo share price indicates that others think this too I guess. Time will tell I suppose. NIA and DYOR Read Full Thread Follow Reply
16/3/2018 17:21	martina pescatore: Based on KWS, a crude adjustment to revenues against mkt cap could imply that with revenues approximately 6 times greater than Zoo and if we assume similar profitability and growth prospects for both companies (ignore cash and debt at the moment) then KWS could have a mkt cap at circa 6 times greater than Zoo? KWS recent trading statement indicated ebitda of circa 22.5M Euros on revenues of at least 150M Euros (15% margin therefore, which is the same minimum figure that the Zoo FD talked about, but which Zoo are eating into whilst building out their zoodubs and I presume for their R and D in order to grow and capitalise on the opportunity) !!! (Personally, I prefer Zoo's strategy and market sector, with strong growth dynamics, to KWS's though, but let's not go there at the moment). No doubt however that KWS has seen great share price appreciation over the last few years though, and very well done to investors in KWS. KWS has a mkt cap of circa £1.05Bn divided by 6 = £175M !!! On this metric, KWS could be overpriced, Zoo could be under priced, or a combination of the two could be right. Alternatively, this could be a lot of nonsense !!! KWS do have more cash than Zoo at circa 30M Euros I believe, but they also have about 18M Euros of debt I believe, so net cash not overly material from a comparison basis. However, deduct 12M Euros (say £10M) from £175M and we have £165M, which with circa 74M shares in issue for Zoo would imply a comparison share price for Zoo of 222p per share. I am not suggesting this as a target price, but who knows what the Broker will come up with as a new target price when the company next reports its final figures in around June 2018. Based on what we know already, I would bet my hat that the Broker's target price will be above the current 97p. NIA and DYOR Read Full Thread Follow Reply
13/3/2018 08:37	martina pescatore: Good growth companies need various attributes and I believe that Zoo is now exhibiting many of these, whilst the market that Zoo is operating in is also growing strongly, therefore there are many positive dynamics in Zoo’ favour. I have no doubt that Zoo is growing strongly and is operating within a favourable market sector. Everyone can now see this. Furthermore, it is also likely that Zoo will continue to grow strongly given the size of the dubbing market that Zoo is targeting and by the fact that they currently have barely scratched the surface of the $1.4bn pa market. How to value a growth company does need careful consideration though, otherwise as the share price rises and overzealous holder could easily be selling the shares when he/she should actually still be accumulating the shares, given the strength of growth. After all, who doesn’t want to hold as many shares as possible if the price is likely to go up? Therefore, for me, even though it is tempting and never wrong to sell with a profit, it could be the worst investment decision to sell now. For me it therefore comes down to valuation. Is the value of Zoo fairly reflected in the current share price (88p) and mkt cap (circa £65M)? What profit would Zoo have made in this FY on revenues of at least $28M if they weren’t investing heavily in Zoodubs? $4.2M on a 15% margin? $4.2M=£3.0M PBT? Zoo should pay no tax for a while. Zoo is growing profits strongly and in order to have a PEG below 1.0 then eps growth needs to be at a higher rate than the PE ratio applied in the valuation calculation of the company. Crudely then, if Zoo is growing profits at a rate of 50% (I think it is much higher actually but don’t have the numbers to hand) then they could be valued on a PE ratio of 49 (let’s say 45 for arguments sake) and we have a starting point for assessing value, IMO. 45 x £3.0M = £135M. £135M / 74M shares in issue = 182p. Oh and then we have the revenue and profits and growth to come from existing services plus zoodubs for a number of years henceforth I expect, not to mention the value from any as yet not launched services. My conclusions therefore are that I should not be a seller but should in fact be a buyer at these price levels, and indeed the direction of the share price strongly indicates that the market has reached similar conclusions. These are my thoughts and others must do their own analyses etc. NIA and DYOR Read Full Thread Follow Reply
27/11/2017 06:47	martina pescatore: The answer to the many questions we have asked and want to ask, can be found in the 50 minute video on the Zoo website, go to “investor relations”, which presents the Interims to 30 September 2017, to a room of institutional investors it seems. It is well worth a watch for anyone considering an investment in Zoo Digital, IMO. The key points for me, at circa 29 mins, Zoo FD (Helen Gilder) states that for the first six months Zoo revenues for subtitling services were circa $7.4M (approx. double the prior year period) and that revenues for dubbing services were $1.7M. Now from memory, the company only launched their dubbing services in September 2017, but even if the $1.7M is for two months' work, this is not a bad start for a service that was well received and was quicker and of similar quality to other dubbing service providers. If Zoo can achieve no further growth in the legacy business of software licensing and digital packaging (circa $4M for the first six months) and no further growth in subtitling (circa $7.4M for the first six months) but which is in fact still growing fast according to Stuart Green, then it can be extrapolated that revenues for the year with dubbing services to add to the pot could potentially be way beyond the $24M to $25M I had estimated. Stuart Green is at pains to point out in the presentation that they are progressing their dubbing services carefully and are ensuring quality is high for all of their dubbing work. Stuart Green also points out that the dubbing margins will improve in the next FY; however, IMO if Zoo can add dubbing revenues of say $1M per month in H2 to an already forecasted H2 figure of circa $12M, then we could be looking at circa $30M for the full year… IMO. If Zoo lay the foundations this year, as they suggest, for zoodubs to ramp up in future periods, then we could be looking at comfortably above $1M per month in revenues from dubbing next year (could easily be $2M per month, or more see below), which added to circa FY forecast $24m now assuming subtitling works stops growing (which it hasn’t yet according to Stuart Green) and with the anticipated margin improvement, Zoo could show a very healthy profit indeed. At 31mins, in Helen Gilder’s analysis of the company Statement, she points out that the trade receivables at $7.1M, which is an enormous figure but is purely down to the increase in trade and is simply a snapshot of the company position at the end of September and that this will work its way through. She also points out that she is not worried by this. At 31mins 31secs Helen Gilder states that Zoo is generating cash but the company is not showing it due to the above increase in debtors. For me this indicates that the company has rapidly ramped up revenues and its billings in the H1 and there seems to be no cash flow issue here. Stuart Green confirms in his presentation that typically for content owners, dubbing work costs about 10 x as much as subtitling work costs. Stuart Green also points out that traditionally, dubbing studios are in territory and therefore, they only typically offer dubbing into one language. Zoo are now a multi-lingual dubbing service provider, having successfully completed their first project into nine different languages. A multiple lingual dubbing service provider has never existed in the industry before and that this will be very attractive to content providers. Zoo are of course also a subtitling service provider and most dubbing service providers are not. Therefore, there can be costs benefits for Zoo which they can share with the content owners. I have been cautiously optimistic about the company prospects for a while, but I now think that we are seeing the company rolling out its strategy very effectively, and that some apparently sounding “wild” share price projections of others are perhaps not so wild after all. If dubbing costs are 10 x subtitling costs, and H1 revenues for subtitling services were $7.4M, then if I was an optimist, I might be multiplying the subtitling revenues by 10 and considering how achievable this would be for a six month period in a few years’ time for dubbing work alone. Perhaps not unachievable at all. No wonder the company talks about the significant opportunity available to it. Has anyone really considered the possibility that Zoo could be achieving revenues of in excess of $100M in just a few years’ time? NIA and DYOR. Read Full Thread Follow Reply
27/10/2017 07:50	martina pescatore: My current thoughts regarding the opportunity for Zoo, and no advice intended… Also, I apologise in advance for the length of this post, but as we all know, it helps to write things down, shares one’s thoughts and ask for valuable contributions from others. So do please contribute. Currently, there are circa 73.5 Million shares in issue. Zoo, without zoodubs and zooscreen is at just ahead of breakeven, with revenues of $16.5M for the previous year to end 31 March 2017 and a minimum of $12M for the first six months to end Sept 2017. In fact, it is likely IMO that the company could make circa $1.0M profit for the current year excluding zoodubs and zooscreen. So let us assume £0.5M profit excluding zoodubs and zooscreen. The broker has said that Zoo currently have about 10% of the EMEA (Europe, Middle East and Africa) market for subtitling, a market valued at circa $300M. However, from my calculations and the data we know, Zoo’s annual revenues from subtitling are not $30M (10% of $300M), they are in fact, likely to be around half that, at circa $15M, IMO. Therefore, from this I deduce that the service offering that Zoo has in zoosubs is providing significant cost savings for content owners. Hence, they are winning business and growing market share. Now, the zoocore and zoosubs platforms launched in 2012 and the subtitling service was launched in 2013, so let’s say five years ago. Therefore, zoosubs has taken circa five years to achieve 10% of the market, ostensibly supported by the new technology approach and the savings that the content owners can achieve, I presume. NB: There is no doubt that the quality is also as high as other subtitling services otherwise zoo would not be succeeding at all. The company has therefore demonstrated both technical development and implementation of the platform and service as well as demonstrating execution of the service offering, together with a start from virtually zero in respect of clients who had not used Zoo for such services before. Selling other new services (eg dubbing) to existing clients (the door is already open theory) should therefore be somewhat less complicated I presume. So, moving onto the opportunity that is dubbing and the new zoodubs platform and service offering. The EMEA market size for dubbing is reported to be $1.2Bn per annum and growing at circa 8-10% pa currently. Let us assume that zoo can similarly achieve 10% of the EMEA dubbing market over a five year period (and that the EMEA market does not grow), therefore broken down this would neatly suggest incremental 1% market share growth every six months. Let us assume that similarly, the zoo market offering is at half the cost for the content owners, but no compromise on quality of course, therefore the calculation for revenues for the first six months (Oct 2017 to end March 2018) could be 0.5 x 1% of £1.2Bn = $6M revenues. Is this possible? So, as a logic check, $6M for six months equates to $1M per month or close to $50,000 dubbing revenues per day. Perhaps this is too much today and this week, but as I suspect it will grow incrementally, the revenue rate could soon get to this level. So, I conclude that it could be possible. As zoodubs integrates both the proprietary dubbing platform and zooscreen technologies, net profit from dubbing could be 20% - 40%, but let’s assume 20%. Therefore, this could add 20% x $6M = $1.2M (say £1.0M) of profit for the six months to end 31 March 2018. By extrapolating this forward, therefore for the following year as a whole we could be looking at 3% of the EMEA dubbing market = $18M revenues (£3M profit) from zoodubs alone, added to the circa $20-24M revenues (£0.5M profit) from the existing business. Totalling £3.5M profit for the year to end 31 March 2019. Projecting forward, this could be £5.5M profit to year end 31 March 2020, based on 5% of EMEA dubbing market. Projecting forward, this could be £7.5M profit to year end 31 March 2021, based on 7% of EMEA dubbing market. Projecting forward, this could be £9.5M profit to year end 31 March 2022, based on 9% of EMEA dubbing market. Can the zoo dubbing service achieve this market penetration this quickly? Well, if the cost savings illustrated above are attractive to the content owners, and if the voice actors like the tools (anecdotal evidence, suggests that they do, as does common sense), then I believe that it can. Also, bear in mind that the zoo dubbing service via zoodubs incorporates zooscreen. Now, currently if a recording studio wants to create a dubbing track for a movie, the movie content could be available in an unsecure form, such as dvd, making it vulnerable to piracy. With zooscreen, the content is secure and protected from piracy, also saving the cost of producing and distributing dvds. What is not to like about it. No wonder it has been winning awards. Remember these words from the recent IABM award for innovation: In their feedback about ZOOdubs, the IABM panel highlighted: “This is not just an app but an entire service. An elegant use of the cloud that leverages all its advantages of speed, flexibility and scalability to transform the process. A real innovation of how dubbing will work in the future." It is possible then that less than 1% per six months or even greater than 1% per six months could be achieved, who knows? So lastly, if we believe and consider that zoodubs can achieve the above, I have put the profit forecasts that I have suggested on a forward pe of 30 (could easily argue for 40 or greater with the growth in profits indicated) and we have: 2017/2018: possible profit of £1.5M = mkt cap of £45M = 61.2p share price. 2018/2019: possible profit of £3.5M = mkt cap of £105M = 142.9p share price. 2019/2020: possible profit of £5.5M = mkt cap of £165M = 224.5p share price. 2020/2021: possible profit of £7.5M = mkt cap of £225M = 306.1p share price. 2021/2022: possible profit of £9.5M = mkt cap of £285M = 387.8p share price. The above are all based on the current circa 73.5 m shares in issue and are all hypothetical of course. There is of course many a slip between cup and lip and none of the above is guaranteed. For me it is simply food for thought in trying to understand the possibilities and trying to value my shares now and over the next year. As the market starts to value the company more on projected future earnings, rather than the past, I can see great potential share price appreciation possibilities here. NIA and DYOR Read Full Thread Follow Reply
13/10/2017 11:21	kcr69: Sicknote, I am glad you bought back in for three reasons 1. Forget Cannacord, it was clearly you who triggered the 6p sell off a few days ago as you unloaded your wad on the unsuspecting market. Don't need any more of those events. 2. The volume of posts dramatically reduced in your brief absence. 3. Obviously none of my business, but I really didn't want to see you put even more money into Triad and Premier Oil. I think the first is an outright basket case, and the second, which incidentally I hold, and I think will eventually come good, but expect a long long time for any decent share price appreciation to be realised. Major difference between Zoo and Premier oil. The management control the destiny of the Zoo share price through execution, whereas the banks, bondholders and hedge funds will control the share price of Premier Oil for some time to come, irrelevant of delivery of Catcher etc. Best wishes and good to see you back. Read Full Thread Follow Reply
05/10/2017 09:08	mcfly79: After a large rise in the share price it's always right to question your investment. Just looking at the FinnCap current year earnings forecast would make the company look expensive. That said, from discussions with the company and everything else I've seen I think the FinnCap forecast is very prudent and we've been told the forecast includes little for Zoodubs. What will really drive the value is the extent to which Zoodubs takes off. So how much of the dubbing market would Zoo need to win to justify the current share price? The current EMEA market for dubbing is $1.4bn annually. Let's say that Zoo can win just 1% of that market over the next 2 years. That's $14m of revenue. FinnCap are using a 55% gross margin for subtitling work so I'll assume the same for dubbing (although I hope Zoo will have more pricing power in the dubbing space). That's $7.7m gross profit. In 2017 revenue increased by $4.9m and staff costs went up by $1m due to an increase in sales, marketing and localisation coordinators. There was a degree of investing for the future in that increase so the increase in staff costs just to cover the $4.9m extra revenue will have been lower. Zoo has already built up a base of staff for dubbing so may be able to cope with some of the extra work without additional staff. However let's be extra prudent and assume staff costs increase against revenue in the same proportion as 2017 - giving around $3m of extra staff costs to cope with the $14m Zoodubs revenue. That leaves a net profit of $4.7m which would add over 6c to eps and justify a far higher share price than where we are currently. Is 1% of the dubbing market realistic? If we look at Zoo's subtitling revenue I think it must make up at least $10m of the $21m forecast revenue for the year. The EMEA market for subtitling is $0.25bn annually and therefore $10m represents 4%. Is there any reason why Zoo can't get 4% of the dubbing market within a few years? Admittedly it has taken Zoo some years to build up the subtitling business but they now have the reputation and client base to push Zoodubs. The dubbing market is also far more fragmented with no dominant players which should make winning work easier (the top 4 vendors only account for 20% of the dubbing market compared to 60% for subtitling). Any thoughts would be welcome. I think I've been prudent with assumptions. Read Full Thread Follow Reply
03/9/2017 09:32	mcfly79: I posted this on the JTCod blog:There have been a number of posts recently on the disruptive technology of EVs and Solar. These technologies could have a profound global impact. I'm also keen on trying to find disruptive technologies in more niche markets that could transform the fortunes of a single company.A few months ago I bought shares in Zoo Digital (Zoo). Current share price 27p and current market cap £20m.The company has a software development background and some years back developed software that streamlines the process for localising films and TV context (the main work stream being subtitling into local languages). Their system is cloud based and allows a central co-ordinator to work with a large pool of freelance translators across the world to subtitle the work into many languages.BackgroundWhen they were trying to sell this technology to TV/Film content providers they were met with resistance since it would have meant abandoning their own infrastructure. Zoo therefore entered the localisation market themselves. The company has gone sideways for a number of years, with a large chunk of their work historically being on DVDs/Blu-rays. Last year (year ended 31 March 2017) their fortunes began to change due to the change in the landscape for localisation work.With the move from physical distribution channels (DVD/Blu-ray) to digital distribution channels (Netflix, iTunes etc) it is now very easy to make content available throughout the world on already established digital channels. Whereas previously content providers would want their DVDs translated into a handful of languages, there is now the demand to translate content into 50 or more languages (including large back catalogues). Zoo is well placed to benefit from this demand. Apple selected Zoo in February 2016 as an iTunes aggregation service provider for TV series and, in May 2016, Zoo was awarded approved vendor status by Netflix.The company recently had a placing to raise funds to allow it to meet the increased demand (at the expense of large dilution for holders).I've set out below turnover for the last few years to highlight the increase in 2017 (which was mainly attributable to an increase in H2 2017):2012: 11.2m2013: 10.4m2014: 9.6m2015: 11.5m2016: 11.6m2017: 16.5m(results are in USD)The use of cloud based software means Zoo's offering is very scalable. The largest additional cost from increased subtitling work is translators' time. Zoo uses a pool of thousands of freelance translators. These translators are not employed and represent a pure variable cost.Due to operational leverage the $4.9m increase in turnover in 2017 (41% increase) led to a more marked percentage increase in profits with EBITDA increasing from $156k to $1,769k and profit after tax increasing from a loss of $787k to a profit of $791k which gave eps of 2.42c.Current tradingThe current year to 31 March 2018 has started strongly. The final results for last year released on 27 June contained the following statement:'The improvement experienced through the second half of the year has carried on into the new financial year and the current pipeline of work is considerably stronger than at the corresponding prior period.'The company also has a ticker on its website that counts the cumulative number of subtitles created and stored for customers:hxxps://www.zoodigital.com/services/localize/subtitling(scroll down)In the last year to 31 March 2017 Zoo added 55-60m subtitles. The increase in the ticker figure has accelerated markedly in recent months and will have increased by over 60m in the first half of the current year. Quite how this translates into extra revenue and profit is unknown at this stage but I'm hopeful that profit after tax will increase substantially from last year.DubbingThere are other companies that offer similar subtitling services but I don't believe there is anything similar for dubbing. Zoo has been working on a cloud based dubbing system and will launch it at the IBC 2017 conference later this month. It is this technology (which the company calls Zoodubs) that could disrupt the dubbing industry if successful. Some more details:hxxps://www.zoodigital.com/news/zoo-brings-cloud-based-dubbing-to-ibcAccording to research in June 2017 from the Media & Entertainment Services Alliance (MESA) Europe, the total Europe, the Middle East and Africa market in 2016 for entertainment localisation (subtitling, captioning and dubbing) was estimated at around $2 billion, with 70% of that attributable to dubbing services. The market value is forecast to grow by 810% per annum.The dubbing market is very fragmented and I've been told the top 4 providers only account for 20% of the work.Zoo is a very small company (£20m market cap) and Zoodubs is very ambitious for a company of this size. I've been told Zoodubs has been well received by Zoo's clients and will be progressed slowly so that Zoo can ensure quality control (but some revenue is expected this financial year to 31 March 2018). Zoo has spent some time building up a network of voice talent and dubbing directors (again all freelance). This is a work in progress initially focusing on core languages and will be built up over time.Zoodubs won best in show at NAB 2017 and ZOO was also named as one of the top ten innovators of 2016 in a report that surveyed international entertainment industry professionals. (Not being an industry expert I don't know how prestigious these awards are):hxxps://www.zoodigital.com/news/zoo-digital-wins-best-of-showhttps://uk.advfn.com/stock-market/london/zoo-digital-ZOO/share-news/Zoo-Digital-Group-PLC-ZOO-named-one-of-the-top-10/73754559SummaryThe share price has had a great run over the last few months and the company is now valued at £20m. I think Zoo is in the right place at the right time for localisation work and has a potential company maker in Zoodubs. That said, I am far from being an industry expert for localisation work and know that a little knowledge can be a dangerous thing. I'd appreciate any comments or criticism people have on the company and thoughts on the current valuation.The company has its AGM on 25th Sep and there is normally a trading update. This year 'following the formal business of the AGM the management team plans to give a detailed review of the business and the environment in which it operates, including demonstrations of its cloud computing platforms. The meeting is open to shareholders and non-shareholders alike.' Unfortunately the AGM is in Sheffield but I am still attending and look forward to seeing the technology in action.I'd also be keen to hear of any other company that have a disruptive technology that will transform their fortunes.A few other points:Existing shareholders saw large dilution in the fundraising (number of shares more than doubled) and some shareholders sold. I bought after the fundraising.Whilst Zoo's software seems well liked by local translators there are some reviews online (glassdoor etc) by local translators that complain of slow or non payment.*The recent award of share options to directors was excessive imo. Read Full Thread Follow Reply

ZOO Digital share price data is direct from the London Stock Exchange

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