Zoo Digital Rises as Losses Narrow, Revenue Rises

Shares in Zoo Digital Group (LON: ZOO) jumped by more than 10% on Tuesday after the localisation and digital media services provider reported narrower losses and higher revenue for the year ended 31 March 2025.

Revenue rose 22% to $49.6 million from $40.6 million a year earlier, while adjusted EBITDA returned to a profit of $1.1 million compared with a $13.6 million loss in fiscal 2024. 

Meanwhile, the operating loss narrowed to $6.5 million from $19.1 million, and the reported pre-tax loss fell to $8.3 million from $20.5 million.

ZOO shares are currently trading around the 14.7p mark. The stock has been trending lower over the last couple of years and is down more than 73% in the last 12 months. In 2025, it has tumbled by over 61%.

Chief Executive Stuart Green said the group had “shown resilience through a period of market transition” and had made “significant progress to restructure its operations to position the Group to deliver operating profit and cash generation in FY26.”

The company delivered $8.4 million of annual fixed cost savings in fiscal 2025 and expects at least a further $2.5 million in savings this year. 

It also achieved a retained sales rate of 98.4%, up from 92.3%, signalling recovering demand and customer satisfaction.

Operationally, Zoo was named a preferred fulfilment vendor for Amazon Prime Video and launched its “Fast Track” service for localising live and near-live content, which the board sees as a promising growth opportunity.

While first-quarter revenue in fiscal 2026 fell 18% from the prior year due to reduced dubbing demand, other service lines have seen three consecutive quarters of growth. 

The company said it has recorded an EBITDA profit for the quarter after restructuring costs, aided by operational efficiencies and automation initiatives.

Zoo said it is entering the new financial year “better positioned to navigate this environment and capture profitable revenue opportunities.”