Published on: November 10, 2021
A strong first half – upgrades for FY22 and FY23
ZOO Digital has announced strong H1 results to 30 September 2021. Momentum has gathered pace due to new content production, and a continuing focus on back catalogues for streaming. Revenue grew by 64% in H1 and adjusted EBITDA by an even more impressive 82% to $2.4m, due to operational gearing. We are upgrading our FY22E and FY23E forecasts accordingly. The conversion of the 7.5% convertible loan stock removed the main group borrowings; the cash balance at the period-end was $8.2m, benefitting from the $10.3m placing in April. ZOO has a strong order book across all service lines with good visibility for H2. Management has confirmed it will continue to invest into FY23 to support volume growth, which will enable greater levels of profitability in future periods.