ZOO DIGITAL GROUP PLC ZOO Digital Group plc
Annual Report 2023
ZOO Digital Group plc
Annual Report 2023
- Welcome to the annual report
- ZOO's growth story
10 Managing global expansion: ZOO India
14 Bridging cultural gaps: ZOO Korea
18 Innovation and the ZOO Digital way
22 Market overview
- Chairman's statement
- Strategic report
34 Financial Review
37 Corporate governance statement
51 Advisers
52 Directors' report
- Remuneration Committee report
- Directors' remuneration report
60 Independent auditor's report
- Consolidated statement of comprehensive
- income Consolidated statement of financial
- position Company statement of financial position
71 Consolidated statement of changes in equity
- Company statement of changes in equity
- Consolidated statement of cash flows
- Notes to the financial statements
113 Group directory
Key performance indicators
Financial
Revenue:
$90.3 million
(FY22: $70.4 million)
Operating Profit:
$8.1 million
(FY22 restated: $1.9 million)
Adjusted EBITDA1 margin:
17.1%
(FY22 restated: 10%)
Operating expense as a % of revenue:
29%
(FY22 restated: 27%)
Operational
Number of freelancers2:
11,467
(FY22: 11,028)
Retained sales3:
98.5%
(FY22: 97.6%)
- Adjusted for share-based payments, the company's preferred method of measuring profitability.
- The number of active freelance workers in ZOO's systems who are engaged directly.
- Proportion of client revenues retained from one year to the next.
Page 3
Broader Market Highlights
Substantial content budgets are not expected to diminish in the medium-term
8.5%
Non-English digital originals grew from 5.9% to 8.5% as a percentage of the total demand for streaming original shows in the period 2020 to 2022
$242bn
Global content investment totalled $238 billion in 2022 and is forecast to reach $242 billion in 2023
$1.6bn
Media localisation spend with major suppliers estimated by Nimdzi to have grown by over 280% between 2018 and 2022, from $420 million to $1.6 billion
Outlook and Post Period event
Raised £12.5 million gross ($15.5 million) via an oversubscribed placing in April 2023 to fund the proposed acquisition of a partner company in Japan with which ZOO continues to have positive, advanced discussions.
Current trading has been impacted by several major streaming companies carrying out strategic reviews to refocus on profitability and the first simultaneous strike of US writers and actors in 60 years. This has created short-term market disruption and temporarily lower volumes of localisation and media services work.
The Board has been taking steps to adjust the cost base to reduce the impact of the temporary industry slow-down on ZOO's business while there remains uncertainty around the timing of the resumption of former levels of production and orders. The Group remains financially strong with net cash at 30 June 2023 of $23 million.
ZOO expects to emerge in an even stronger position once certain customers have rationalised their supplier bases, resulting in ZOO taking further market share once former order levels resume. It is reasonable to expect this will be in H2 FY24.
The Board remains confident in ZOO's medium and long-term fundamentals and expects to deliver revenue growth over FY23 in the following years. Our guidance for FY24 remains unchanged and 2030 strategy remains on track.
ZOO Digital Group plc
Annual Report 2023
HIGHLIGHTS OF THE YEAR
Key Financials
28%
Revenue grew by 28% to $90.3 million (FY22: $70.4 million)
3% of sales were from newly acquired operations
$15.5m
Adjusted EBITDA* grew to $15.5 million (FY22 restated: $7.1 million)
EBITDA* margin increased to 17.1% (FY22 restated: 10.0%)
$7.9m
Reported profit before tax of $7.9 million (FY22 loss restated: $0.2 million)
$15.5m
Net cash generated from operations up 197% to $15.5 million (FY22: $6.0 million)
$11.8m
Net cash at year-end of $11.8 million (FY22: $5.2 million)
* Adjusted for share-based payments
Page 5
Operational Highlights
ZOO selected as a key vendor by a second major content producer with ZOOstudio adopted to support its content localisation across vendors
$56.6m
Media localisation segment sales grew by 34% to $56.6 million
(FY22: $42.2 million) - subtitling increased by 15% and dubbing by 73%
98.5%
Leading standard of customer satisfaction maintained - retained sales KPI was 98.5% (FY22: 97.6%)
$32.1m
Media services grew by 22% to $32.1 million (FY22: $26.4 million)
11,467
Worldwide freelancer network grew by 4% to 11,467 (FY22: 11,028)
Strong progress in global growth initiative with further investments hubs in India, South Denmark and Spain
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Disclaimer
ZOO Digital Group plc published this content on 31 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 September 2023 07:54:03 UTC.
