ZOO Digital shares surged on Tuesday after the media services to the global entertainment industry said orders has returned following the US writers’ trike.
Noting clarity on project timelines, Zoo said it is now receiving orders for work on feature films and TV shows completed after the industry strikes of 2023. January saw the highest invoicing month since April 2023 and Zoo sees acceleration in its pipeline.
Zoo Digital shares were 25% higher at the time of writing.
ZOO Digital anticipates surpassing revised market guidance for FY24, with projected revenues of at least $40 million. Consequently, the expected EBITDA loss will be mitigated. Net cash is forecasted to be at least $3 million, exceeding revised market expectations. While the Company currently holds no debt, it plans to renew its existing undrawn facilities upon expiration.
Enhanced Visibility
Investors will be pleased momentum is returning to Zoo Digital providing enhanced visibility of work, some of which will extend through September 2024. A considerable number of orders are in progress, with a growing pipeline of projects confirmed for the upcoming period. The order book for FY25 Q1 has seen a notable increase of 30% compared to FY24 Q4, underscoring expectations of a robust revenue recovery in FY25 H1.
Zoo Digital said market expectations for FY24 revenue is $37.6 million and EBITDA $14m.