While the AGM statement pointed to revenue growth in the first of the financial year of at least 17% this wasn’t enough for followers of this highly rated share.
With the shares trading at nearly 60x consensus earnings estimates for the financial year ending March 2020 (yes, that is 2020!), you can start to see why 17% is missing the mark. While the house broker had growth expectations of 18% for the first half, the market is clearly expecting (and should be expecting) this to be materially exceeded.
ZOO is enjoying particular success with its Cloud-based dubbing service ZOOdubs, which was the main contributor to growth in the first half. However, disruption has apparently been experienced by ZOO and other market participants in the subtitling supply chain during the transition of a major OTT (that’s streaming media like Netflix) operator’s partner programmes. Thankfully this is easing, and they are seeing normal operations increasingly restored. ZOO is heavily dependent on…
Register to continue reading this article.
Already a member? Login
For access to the top news and insights from the investment worldREGISTER FREE TODAY
Full year results from Zoo Digital, the provider of cloud-based localisation and digital distribution services for the global entertainment industry,…