Sparks

Zoo Digital’s H125 results to the end of September show a rebound in revenues as the entertainment industry recovers from the impacts of the Hollywood strikes, with revenue up by 29% and a return to profit at the adjusted EBITDA level. Previous cash outflows have reversed to a modest inflow of $1m, reflecting reduced operating costs. Zoo Digital continues to invest in aligning its business with the industry’s changing needs, particularly as end-to-end models come to the fore, and the company is investing further in markets such as India and Italy.

The prospects are for a more robust market through 2025 and a good tailwind through to 2028, although there is some uncertainty about Zoo Digital’s H225 revenue, given limited visibility on one-off projects. The resizing of the group’s cost base is supporting cash flow and an additional debt facility of $2m has been secured, giving a total resource of $5.6m and paving the way for an expected continuing recovery in margin.