Published on: January 22, 2019
Hit to FY19E revenue but outlook solid
ZOO Digital (“ZOO”) has announced a likely shortfall in revenues for the year to March 2019. The group has seen a double whammy – a steep decline in legacy (but high margin) “packaging” work on DVD/Blu-ray, and the cancellation of one unusually large order from one of its major customers. We make material reductions to 2019E EBITDA, but leave 2020E unchanged as the medium-term outlook remains bright.