UK's Zinc Media H1 revenue falls 42% on delayed commissions

Overview

• UK television producer's H1 revenue fell 42% yr/yr due to delayed commissions

• Gross margin rose to 44% from 37% on higher-margin IP revenues and cost control

• Adjusted EBITDA swung to a £0.9 mln loss from a profit a year earlier

Outlook

• Company expects FY26 revenue of £38m and EBITDA of £1.4m

• £7m of FY26 production delayed to FY27 due to Iran conflict

• Zinc Media sees strong FY27 pipeline with £9m contracted and further £39m in opportunities

Result Drivers

• DELAYED COMMISSIONS - Co said revenue was impacted by delayed productions, especially in the Middle East due to the Iran conflict

• HIGH-MARGIN IP REVENUES - Gross margin rose as investments in new genres enabled delivery of high-margin IP revenues

• COST SAVINGS - Permanent cost savings from restructuring and the 'One Zinc' initiative helped reduce underlying cost base

Company press release:

Key Details

Analyst Coverage

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

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

• Wall Street's median 12-month price target for Zinc Media Group PLC is GBp150.00, about 165.5% above its September 22 closing price of GBp56.50

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago

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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)