ZOO Digital raised its performance expectations for 2022 in its pre-close trading update for the financial year ending 31 March 2022, where it expected revenue to be $70m compared to the previously announced $65m on Monday.
ZOO Digital announced in March that revenue was expected to be at least $65m and EBITDA at least $6.5m. The group has raised its estimates for the year ending March 31, 2022.
ZOO Digital says that revenue for 2022 is now estimated to be about $70m compared to $39.5m in 2021, representing a 78% increase in organic growth over the previous year.
The group’s EBITDA adjusted for share-based compensation is likely to be considerably ahead of previously updated projections, coming in at over $8m in 2022, up 78% from the preceding year when it amounted to $4.5m.
Despite major investment in South Korea, India, Turkey and Denmark, to increase capability and underpin future revenue growth, net cash on March 31, 2022, was $5.4m compared to $2.9m in 2021, indicating excellent cash creation despite significant expenditure to expand capabilities and sustain future income according to ZOO Digital.
ZOO Digital supports big names such as Disney, Netflix, Amazon, NBC Universal, HBO, ViacomCBS, and Paramount with its major Hollywood studios and streaming services to globalise their content and reach audiences everywhere.
“It has been an outstanding year for ZOO with growth materially above expectations, with our last quarter being a record period. We continue to benefit from streaming launches in new territories around the world, while also increasing market share through new service offerings and seeing strong demand from customers across all of ZOO’s operating segments,” said Stuart Green, CEO of ZOO Digital.
“The board has invested heavily in capacity to support further growth and the group has expanded its international footprint in regions that are strategically aligned with our major customers. With a strong pipeline of projects in place, we are confident of delivering further sustainable growth in the year ahead.”
ZOO Digital shares gained 5.75% to 119.5p on Monday after the company raised its performance expectations for the year.
