www.zoodigital.com
ZOO Digital Group provides software and related services that support the authoring, re-purposing and distribution of creative media. ZOO’s products form an integrated suite of web-based and desktop applications for audio/visual content and printed materials, adapting these media for different languages, formats and delivery mechanisms.
ZOO’s services enable quicker and more cost effective processes across a wide range of applications and formats, including packaging, printed materials, DVD, Blu-ray Disc, video on demand, electronic sell-through, broadcast, music and electronic books
Zoo Digital hit by move away from DVDs
An acceleration in the shift by consumers away from DVDs impacted on Zoo Digital’s (LON:ZOO) traditional business in the first half of the year.
Zoo said the poor economic environment also meant consumers buying fewer disc based products, with revenues overall falling to $5.9 million in the six months to September from $8.1 million.
The Sheffield-based firm, which supplies audio/visual software for all forms of creative media, said a reduction in the number in the number of DVDs being made generally had meant a drop in the number of titles being processed.
There was a rise in the number of titles prepared using software for both Blu-ray and Electronic Sell Through (EST) platforms, a trend that the firm expects to continue, although this was not sufficient to offset the decline in the DVD market.
The volume of work carried out by ZOO as a percentage of clients' overall throughput had not decreased, it added, while it is also targeting the fast growing e-book market.
For the six months, the group posted a loss of US$1.3 million against a profit of US$388,000.
The group has restructured its US cost base to give a lower fixed overhead, but the timing of new revenue streams such as Electronic Sell Through, Blu-ray and eBook means that full year results will also fall short of expectations, it added.
Zoo said it remains confident moves to diversify its revenue streams will improve the predictability and resilience of the business model and return it to profitability.
