Zoo Digital Group PLC (LON:ZOO) said it was “optimistic” about its growth potential after narrowing pre-tax losses in 2015 with major changes afoot in the industry.
The software services group saw its pre-tax loss narrow to US$1.5mln, from a loss of US$2.1mln the previous year.
Revenue was US$11.6mln, from US$11.5mln the year before, despite the disruption caused by the disposal of the delivery arm of one of its largest customers last year.
The year saw a 29% increase in customer numbers and a 25% increase in adjusted revenues.
The group said it continued to invest heavily in its software and was looking to conclude long term partnership arrangements with a number of global content owners and distributors.
It was now the preferred vendor for two of the largest online entertainment retailers in the industry and its software services are used across the six big Hollywood studios.
Zoo said it was also closely following the rapidly changing industry environment.
"The changes due to new consumer technologies and internet-delivered services that have disrupted the entertainment supply chain in the last five years have been profound,” said chief executive Stuart Green.
Green said that the new challenges for the industry create a significant opportunity for ZOO as high quality entertainment products need to be created for more languages, on more digital platforms and at a faster rate than ever before.
"We have entered our 2017 year with a stronger pipeline, a broader range of services and a greater sales capability. The board is optimistic about the company's potential for growth."
Analysts at finnCap said that the results were in line with April’s upbeat trading update, and confirmed that ZOO has recovered from an unexpected customer loss in last year as a result of strong growth in other areas of the business, which total group sales of US$11.6mln do not fully reflect.
The broker said that: “Growth has been coupled with reassuring cost control, meaning that cash operating expenses have fallen by 5% year-on-year and contributed to an improved adjusted earnings (EBITDA) performance of US$0.2mln compared to US$0.7mln the previous year.”
Shares dropped 7.6% to 9p.