Zoo Digital Group (LSE:ZOO), the AIM-listed tech-enabled localisation and digital media services provider, reported adjusted EBITDA of $4.0 million for the year ended 31 March, up from $1.1 million a year earlier, as a completed restructuring programme lifted profitability despite falling revenue.
Revenue fell 15% to $42.3 million from $49.6 million, reflecting subdued content commissioning across the media industry, though gross margin improved to 42% from 36% as the leaner operating model took hold. The operating loss narrowed to $1.6 million from $6.5 million, and the pre-tax loss shrank to $2.3 million from $8.3 million.
Meanwhile, cash EBITDA, a metric closer to underlying cash flow, turned positive at $0.4 million against a $2.7 million loss the prior year.
"With a stronger rightsized financial platform, improving customer activity and recent contract wins, we enter FY27 focused on returning the business to profitable growth," said chief executive Stuart Green.
Zoo Digital cited new framework agreements with two customers and the launch of its premium Fast Track service, delivering dubbing within 24 hours and subtitling within three hours for live and near-live content.
Trading in the first quarter of FY27 has been strong, giving the board confidence in a return to revenue growth and continued profit progression through the year.
News Intelligence what this means for the company
Zoo Digital swung to sharply improved EBITDA of $4.0m (from $1.1m) despite a 15% revenue decline to $42.3m, as its restructuring programme delivered a leaner cost base and gross margin expanded to 42% from 36%. The company is now cash-generative—operating cash inflow rose to $3.5m from $1.1m—and management signals strong early FY27 trading and a return to revenue growth, anchored by new customer framework agreements and a new Fast Track service for live/near-live content.
The restructuring has proven its worth: Zoo is now profitable on an EBITDA basis and cash-positive operationally, even as revenue contracted due to industry headwinds. The shift from $8.3m pre-tax loss to $2.3m, combined with management confidence in FY27 revenue recovery, suggests the worst of the downturn is behind it—but execution on growth will be the test.
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