ZOO Digital shares (LON:ZOO) plunged on Tuesday after the company warned that its annual earnings would fall behind expectations.

The company said that revenues associated with DVD and Blu-ray titles in the second half of the year would prove “significantly lower than anticipated” as “the overall market decline in this area has accelerated more quickly than envisaged.”

As a result, the firm said it expects revenues for the second-half of the year to be 10% below expectations.

Stuart Green, Chief Executive of ZOO Digital, commented:

“Whilst we are disappointed to fall short of expectations, albeit primarily due to one off occurrences, we are encouraged that we have seen year on year growth across our key service lines being dubbing and subtitling, as well as having successfully delivered projects for a number of new clients. We remain confident that the Company’s strategy is correct and will enable us to capitalise on the long-term opportunity. We are now enjoying a growth in orders from our largest clients and expect to add significant new accounts during the remainder of the second half.

“With several major media companies recently announcing their intention to launch OTT services, there is no doubt that the market will continue to expand significantly and with it the growing demand for the premium services offered by ZOO. Our excitement for the future remains undiminished.”

ZOO Digital is a provider of subtitling and digital distribution. The company was founded back in 2001 in Sheffield.

It has production facilities in El Segundo, Los Angeles, London and Sheffield as well as in Dubai.

Shares in ZOO Digital are currently -46.59% as of 14:14PM (GMT).

Elsewhere across the markets, shares in cyber security provider ECSC (LON:ECSC) rallied on the back of a promising trading update.

In the retail sector, Pets at Home shares (LON:PETS) ticked up after the company posted a promising set of results for the Christmas period.

Conversely, embattled department store chain House of Fraser revealed a sharp fall in sales in the run up to Christmas, down 60%, as the UK high street continues to suffer.