Zoo Digital Group PLC’s (LON:ZOO) shares perked up as it indicated profits this year would be ahead of market forecasts.
Growth had continued in the second half of the financial year, it said, with underlying profit [EBITDA] to March expected to be at least US$2.3mln (US$1.8mln).
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Revenue will be at least US$28mln(US$16.5mln).
Localisation services (or subtitling and dubbing) are growing strongly and will account for 70% of overall revenue against 52% a year ago.
A new cloud-based dubbing service has also been well-received by both existing and new clients said Stuart Green, chief executive.
“Whilst this proposition is still in the investment phase, we have made significant strides in advancing and validating our proprietary technology.
“This will provide us with a platform for strong growth, therefore we expect to be operationally geared to achieve enhanced profitability in future periods." he added.
The AIM-listed provider of subtitling and dubbing services added it had also received a research and development (R&D) grant from UK government body Innovate UK to automate the lip-sync dubbing process.
Middle East partnership
Zoo also said that a new phase in its affiliate partner programme had begun in the UAE, enabling the company to extend its dubbing and subtitling capability in the Middle-East.
Zoo Digital shares rose 7% at 73.5p.