Zoo Digital Group plc (AIM: ZOO), the Sheffield-headquartered tech-enabled localisation and digital media services provider to global studios and streaming platforms, has reported a return to revenue growth in its interim results for the six months ended 30 September 2026. Group revenue rose 5.5% to $23.6 million while Adjusted EBITDA surged 86.8% to $3.6 million, as the business swung from an operating loss to an operating profit of $1.5 million. The board expressed confidence in delivering full-year results in line with market expectations of $43.5 million revenue and $4.1 million Adjusted EBITDA.

Key Points

  • Zoo Digital Group plc (AIM: ZOO) — tech-enabled media localisation and digital media services provider
  • H1 FY27 revenue grew 5.5% to $23.6 million, with operating profit of $1.5 million versus a $1.2 million loss in H1 FY26
  • Localisation revenue rose 46% to $16.7 million; Fast Track services accounted for 38% of revenue, up from 4% in FY26
  • Investors will be watching whether H2 revenue growth can be maintained without the one-off catalogue projects that benefited H1

Localisation Revenue Surges 46% as ZOO Reduces Dependence on Largest Customer

Localisation services generated $16.7 million in H1 FY27, up 46% from $11.4 million in the prior-year period, driven by high demand for reformatting older catalogue content into new territories and languages. This growth helped offset a 37% decline in media services revenue to $6.9 million, largely reflecting structural changes at the group's largest customer. Notably, that single customer's share of total revenue fell from 55% in H1 FY26 to 26% in H1 FY27, with total sales excluding the largest customer rising 72%. Four of the five largest customers increased order levels by between 55% and 306% year-on-year, the company stated.

ZOO's 7-Day Dub and Fast Track Services Drive Technology Differentiation Against Traditional Vendors

Zoo Digital highlighted its proprietary AI-embedded workflows as a key competitive differentiator, citing its "7-Day Dub" service, which compresses a dubbing process traditionally taking four to six weeks into seven days. The company's Fast Track premium service, covering live and near-live localisation as well as accelerated standard projects, accounted for 38% of H1 FY27 revenue, compared with just 4% in FY26. The group operates across nine territories using a "follow-the-sun" model and a network of more than 12,000 freelance linguists, enabling continuous project delivery around the clock for clients including Disney, NBCUniversal, Netflix and Paramount Skydance.

Adjusted EBITDA Margin Expands to 14.8% as Operating Costs Fall to 37.5% of Revenue

Significantly improved profitability reflected what the company described as enhanced operating leverage following a rightsizing of the business. Adjusted EBITDA increased to $3.6 million from $2.0 million, with the margin rising to 14.8% from 9.0% in H1 FY26. Cash EBITDA reached $1.9 million versus $0.6 million previously, while operating expenditure as a percentage of revenue fell sharply to 37.5% from 50.1%. Gross cash stood at $3.4 million, with $1.9 million drawn on the US invoice financing facility against a total facility of $5.0 million. Gross margin remained solid at 43%, compared with 45% a year earlier.

Board Confident on FY27 Outlook Despite Limited Revenue Visibility and H2 Catalogue Uncertainty

Zoo Digital stated that current trading is positive and continuing the trend established in H1, with tender activity at its highest level since before the 2023 Hollywood strikes. The board expressed confidence in delivering revenue growth and profit progression for the full year in line with market consensus of $43.5 million revenue and $4.1 million Adjusted EBITDA. However, the company cautioned that H1 benefited from one-off catalogue projects not assumed to recur in H2 and acknowledged that the business continues to operate with limited revenue visibility, keeping its focus on disciplined execution, efficiency, and cash generation.