Back catalogue fuels the recovery

ZOO Digital Group plc, the AIM-listed localisation and digital media services partner to the global media and entertainment industry, expects first-half revenues of at least $23.0 million, an increase on both halves of the previous financial year.

The figure for H1 FY27, which the Board says is in line with management expectations, comes in a trading update issued ahead of the company's Annual General Meeting at 5.00pm BST today.

With its restructure now complete and its operations right-sized for profitable growth, ZOO has also been reshaping its service offerings to meet customers' changing requirements. That evolution, according to Chair Nathalie Schwarz, mirrors what is happening across the streaming sector itself.

"The providers of streamed content in the global media and entertainment industry are evolving their offerings, which is creating an increased demand for our tech-enabled services as well as new emerging opportunities for our business," she will tell shareholders.

The Board is concentrating on disciplined execution, operational efficiency and cash generation as it seeks to turn improving activity levels into sustained revenue and profit growth.

Much of the uplift so far this financial year has come not from new productions but from the localisation of existing content, which has boosted the Group's Media Services and Subtitling work. This business has typically been one-off in nature. Even so, the company argues it demonstrates the flexibility of its customer-led "end to end" offering and its ability to support clients across a broader range of services.

There are early signs that new material is on its way, too. ZOO reports emerging indications of an increase in the pipeline of original content, which is expected to contribute to revenues in the second half.

Chasing the immediacy of live television

The Board is confident that structural changes among streaming providers play to the company's strengths. Those providers are increasingly seeking to replicate aspects of live or near real-time traditional linear television, both to attract new audiences and to keep existing subscribers engaged. The result is investment in new formats and different content categories, all with shorter turnaround times.

Here ZOO believes its proven technology platform and tech-enabled solutions, blended with human expertise and AI, give it an edge in meeting shifting demands while maintaining market-leading quality and security.

The evidence, the company says, lies in continued new business won through RFPs and expanded scopes of engagement with several customers. That, in turn, is enabling ZOO to diversify its revenues and reduce customer concentration during FY27.

Boardroom changes

Today's AGM also marks the departure of Mickey Kalifa, who stands down from the Board after a nine-year term, as announced on 18 May 2026. The company thanked him for his longstanding service and valuable contribution. Alan Newman succeeds him as Chair of the Audit Committee.

The search for a further independent director, who will also serve as Remuneration Committee Chair Designate, continues, with an appointment expected soon.

For a business that has spent the past year slimming down, the message to shareholders is clear: the streaming giants are changing how they work, and ZOO intends to be leaner, quicker and ready when they do.