(Alliance News) - Zoo Digital Group PLC on Wednesday said it will post lower than anticipated annual results, amid disruptions in the entertainment industry.
Shares in Zoo Digital fell 26% to 42.85 pence each in London on Wednesday morning.
Zoo Digital is a Sheffield, England-based provider of end-to-end cloud-based localisation and media services to the global entertainment industry.
The firm expects revenue for the fourth quarter of the year to be "significantly lower than anticipated", which will lead to a chunkier loss than expected for 2023. In 2022, the firm reported a pretax profit of USD7.9 million.
This was driven to a delay in the completion of entertainment products, following an "unforeseen disruption" in the entertainment industry, following the Hollywood writers strike from May to September.
Nevertheless, the Zoo Digital's pipeline is consistent with market expectations for 2025, and anticipates it will return to profitability.
At December 31, Zoo Digital had net cash of USD8.9 million, down 61% from USD23 million at June 30.
By Sabrina Penty, Alliance News reporter
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Zoo Digital (ZOO)