Published on: September 28, 2023
AGM flags continued workflow disruption
This morning’s AGM statement by ZOO confirms that trading is still being impacted by the two market issues detailed at the recent prelims. First, the industry-wide strikes that have halted new productions have not been fully resolved. A deal has been reached with the writers (WGA) but talks are still ongoing with the actors’ union, given the complexities surrounding AI. Second, workflow is still disrupted as the major streaming providers realign business models to increase profitability. However, we believe this presents a unique opportunity for ZOO to seize market share with its unique end-to-end offering and growing local presence. We have adjusted our estimates for FY24 to reflect the near-term headwinds and feel it is prudent to remove FY25 forecasts until visibility improves.