GCIZOO Digital revenue surges in H1 as cost-cutting and market recovery boost path to profitability
() , a provider of cloud-based localisation and media services, announced its unaudited interim results for the 6 months to September 30, 2024 (1H25).
reported a 29% increase in revenues to US$27.6m from US$21.4 in 1H24 as output continued to recover following last year's Hollywood strikes. Gross profit jumped nearly 5-fold to US$10.1m from $2.1m in 1H24, and adjusted EBITDA returned to profit of US$1.6m as previously guided, erasing last year's US$7.1m EBITDA loss.
ended the half with a cash balance of US$4.3m, down from US$16.8m at the end of 1H24. Operating cash inflow in 1H25 was approx. US$1.0m, compared to an outflow of US$4.8m in 2H24.
Operationally, reported a materially improved market position, with a high degree of customer retention (retained sales KPI of 97.7%). said it streamlined operations to enable ramping up of production with recovering demand, with salary costs reduced by US$4.5m to US$13.5m from last year's US$18.0m. The company continued its international expansion with the opening of ZOO Italy in Milan and India production centres.
Stuart Green, CEO of ZOO Digital, commenting: "These results demonstrate that ZOO is recovering well from the impact of the Hollywood strikes and aligning with our customers' evolving content strategies. Taking action to deliver efficiencies, including relocating some operations to India; embracing innovations such as Artificial Intelligence; and the pursuit of opportunities in new regions, have seen ZOO become a more agile and efficient business, ready for the next chapter of our growth story."
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A robust set of results from marking a strong recovery from the 2023 Hollywood writers' and actors' strikes. As expected, adjusted EBITDA returned to profit as revenues and gross profits surged, with positive momentum maintaining into H2 and production ramping up in existing and new markets. Simultaneously, managed to reduce costs by streamlining its workforce and moving some operations to India.
In line with its optimisation initiatives, is betting on AI, having recently published a white paper on enhancing the localisation of premium content to ensure faster delivery times without compromising quality. 's production platforms are state-of-the-art, having recently undergone a security audit by gold-standard Trusted Partner Network. Post-period, was named Netflix Preferred Fulfilment Partner of the year for the Americas, for excellence in asset quality and project management at scale.
The entertainment industry is continuing to recover steadily in 2H25, gradually improving through FY25. 's recovery in 1H was in line with expectations, and ongoing cost restructuring and recently secured additional funding provide a strong foundation for continued growth and a return to cash breakeven in the near term. The company is well-funded with US$5.6m total at period-end after obtaining a £2m debt facility in 1H.
shares gained 7% on the announcement.
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