The long-running strike by the Writers Guild of America, plus cutbacks at streaming platforms have impacted on Zoo Digital’s turnover.
The listed Sheffield group, which provides subtitle and media services to the entertainment industry stated that revenues for the first quarter of this year would be lower than expected.
The writer’s strike, which is now entering its third month has had an impact on work across new titles, while it explained that cutbacks across the industry had led to greater competition and the “deferment of some costs.”
“Despite the short term industry-wide uncertainly alluded to above,” it stated.
“Zoo expects to be in an even stronger position with several customers following a rationalisation of their supplier bases with Zoo selected as one of a smaller number of vendors. Consequently, the Board expects the Company to take further share of the media localisation market once former business levels resume.
“It is reasonable to expect this to be in the second half of the current financial year, and on this basis the Board currently expects revenue growth to return in the second half of FY24.”
The group has net cash of $23m and is having “positive, advanced discussions” with a Japanese technology company regarding the acquisition of its localisation subsidiary.
