ZOO Digital returns to profit as localisation revenue rises 46%

Sheffield-based ZOO Digital Group has moved back into profit, according to its half-year results for the period to 30 September.

The AIM-listed business, which provides digital media services and localisation work such as dubbing and subtitling for film and TV worldwide, posted revenue of $23.6m for the six months ended 30 September 2026, up from $22.4m a year before.

Operating profit came in at $1.5m, compared with a $1.2m loss in the same half last year. Pre-tax profit stood at $1.3m, against a $1.4m loss in H1 FY26.

Adjusted EBITDA increased to $3.6m from $2m. Gross margin was 43%, down from 45% in H1 FY26. ZOO said a leaner cost structure and a larger share of higher-margin localisation revenue offset the drop in media services.

Localisation up, media services down

Localisation revenue grew 46% to $16.7m, while media services revenue fell 37% to $6.9m.

According to ZOO, the rise in localisation volumes came mostly from work on catalogue content being licensed into new territories. It also said tendering for new business during the half reached its highest level since before the 2023 Hollywood strikes.

The company's biggest customer made up 26% of revenue, compared with 55% in H1 FY26, as ZOO widens its client base. Sales excluding that customer were up 72%.

ZOO said it still works with all the major studios, including through its 7-Day Dub platform, which cuts dubbing projects to seven days from the typical four to six weeks.

Cash on hand was $3.4m, compared with $3.3m a year earlier. ZOO put this down to “disciplined cash management”, drawing down part of its invoice financing facilities, and reduced creditor balances.

Outlook

Stuart Green, chief executive of ZOO, said: “ZOO has returned to growth with improved profitability and cash generation. We are benefitting from increased demand for faster delivery in more languages as well as new content formats that are expanding the media localisation market.

“As a technology disruptor in the sector, we are setting new standards for quality delivery at significantly faster speeds than those offered by traditional vendors. Our proprietary software, which embeds AI across workflows, allows customers to balance speed and cost, while maintaining control through the input of our specialist teams around the world.”

ZOO described current trading as positive. The board said it was confident of returning to revenue growth and making profit progress in FY27 in line with market expectations.

It warned, however, that the first half was helped by some one-off catalogue projects that it is not assuming will recur in H2, and that revenue visibility remains limited.