UK's Zoo Digital H1 revenue rises on higher demand for localisation services 

Overview

• UK localisation services firm's H1 revenue grew 5.5% yr/yr, driven by higher localisation demand

• Adjusted EBITDA nearly doubled yr/yr as profitability improved on cost cuts and higher volumes

• Company says H1 growth partly due to one-off catalogue projects unlikely to repeat in H2

Outlook

• Zoo Digital expects FY27 revenue growth and profit progression in line with market expectations

• Company does not expect certain one-off H1 projects to repeat in H2

• Company says revenue visibility remains limited, focus remains on execution and cash generation

Result Drivers

• LOCALISATION GROWTH - Higher volumes of localisation services, especially for older catalogue content licensed into new territories, drove revenue increase

• COST STRUCTURE - Improved profitability attributed to a more efficient operating model and lower overheads

• FASTER DELIVERY SERVICES - Increased uptake of premium and accelerated delivery services contributed to revenue mix shift

Company press release:

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "buy"

• The average consensus recommendation for the software peer group is "buy"

Reuters Recommended Reads

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)