Yorkshire-based subtitling and dubbing specialist Zoo Digital has announced it is turning a corner after a period of significant industry disruption, with its latest financial results showing a substantial improvement in its performance.
Financial Performance Shows Marked Improvement
For the six months to the end of September, the Sheffield company reported that its adjusted Ebitda increased by 18% to $2 million. Crucially, its operating losses narrowed dramatically from $2.5 million to $1.2 million.
This improvement came despite a 19% fall in revenues to $22.4 million. The company explained that revenues in the same period last year had been artificially boosted by a backlog of work following the Hollywood strikes, which had previously put major pressure on the business alongside customer reorganisations.
Restructuring and Strategic Shifts
A comprehensive restructuring programme, initiated during the firm's 2024 financial year, has been central to the turnaround. This involved reducing staff numbers and moving some operations to Chennai in India.
These difficult decisions yielded significant results, helping Zoo to slash its fixed costs from $23.2 million to $15.5 million. Investors were informed that trading since the half-year point has brought more stable revenue, indicating the worst of the volatility may be over.
Embracing Technology for a Leaner Future
Zoo Digital has strategically focused on launching a premium Fast Track localisation service, which includes dubbing, subtitling, and captioning. A key component of this new agility has been the integration of AI into its workflows, contributing to what the company describes as a leaner, more agile operating model.
Stuart Green, Chief Executive of Zoo Digital, stated that the results demonstrate the company has started to turn the corner. He confirmed the business is now on a more solid footing with a rightsized cost base, stable revenues, improved profitability, and is generating cash.
Green highlighted the company's unique market position, stating: "With certain of our customers becoming more open to adopting technology to reach global audiences faster, I believe Zoo is positioned to benefit as the only truly tech-first end-to-end vendor in our market."
Trading since September 30 has been in line with expectations, with streaming giants increasingly seeking fast turnaround localisation for their global content.
