Hollywood strikes and strategic reviews caused significant disruption during 2023, says Zoo Digital

ZOO Digital Group, the provider of localisation and media services to the global entertainment industry, has revealed that its revenue for the fourth quarter of the year is “significantly lower” than anticipated.
Greg Wright
By Greg Wright
Published 24th Jan 2024, 10:58 BST

In a trading update, ZOO said 2023 marked a period of significant and unforeseen disruption for the entertainment industry following strategic reviews by major studios and Hollywood strikes that brought productions to a halt for six months.

The statement added: “Following resolution in November, production companies have resumed projects with the expectation that the first of these would complete in January, accelerating into February and beyond.

Hide Ad
Hide Ad

“ZOO has now been notified by its largest customer of orders giving a pipeline and confidence of work for the next two quarters which is expected to deliver a strong recovery of revenues, and indicates demand for services and languages that are aligned with ZOO’s investment strategy.

Library image of a demonstrator holding a placard as she takes part in a protest by members of the British actors union Equity in Leicester Square, London, in solidarity with striking Hollywood members of the Screen Actors Guild - American Federation of Television and Radio Artists (Photo by Ian West/PA Wire)Library image of a demonstrator holding a placard as she takes part in a protest by members of the British actors union Equity in Leicester Square, London, in solidarity with striking Hollywood members of the Screen Actors Guild - American Federation of Television and Radio Artists (Photo by Ian West/PA Wire)
Library image of a demonstrator holding a placard as she takes part in a protest by members of the British actors union Equity in Leicester Square, London, in solidarity with striking Hollywood members of the Screen Actors Guild - American Federation of Television and Radio Artists (Photo by Ian West/PA Wire)

"However, it is now clear that the completion of entertainment products is taking longer than expected. This will result in Q4 (fourth quarter) revenue being significantly lower than anticipated leading to a greater loss than previously expected for the full year. The pipeline is consistent with current market expectations for FY25 and a return to profitability.”

On December 31 2023, the group had net cash of $8.9m and it expects to maintain a positive balance with unused debt facilities available at the March year-end and an improving cash balance in the first half of 2025, due to the re-starting of orders.

The statement added: “The Board expects further clarity on the timing of projects and therefore revenue for the rest of the year in the coming weeks and will update the market further as necessary in due course.”

Related topics:Hollywood

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.