ZOO Digital Group PLC (LON:ZOO) investors should brace themselves for what is likely to be a rough few days after the dubbing and subtitling group sounded the earnings alarm.
Shareholders were told adjusted earnings (EBITDA) will be “significantly below expectations” after an order loss and lower revenues from its DVD and Blu-ray titles.
READ: ZOO Digital: An overnight sensation ten years in the making
"Whilst we are disappointed to fall short of expectations, albeit primarily due to one-off occurrences, we are encouraged that we have seen year on year growth across our key service lines being dubbing and subtitling, as well as having successfully delivered projects for a number of new clients,” said Zoo chief executive Stuart Green.
“We remain confident that the company's strategy is correct and will enable us to capitalise on the long-term opportunity.
“We are now enjoying growth in orders from our largest clients and expect to add significant new accounts during the remainder of the second half.”
The shares finished Monday at 115p.