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July 14, 2020, 2:52 a.m. EDT

Zoo Digital sees strong start to FY 2021

By Adria Calatayud

Zoo Digital Group PLC said Tuesday that it has made a strong start to fiscal 2021 and that it expects to benefit from future tailwinds in the entertainment industry, but reported a swing to a pretax loss for fiscal 2020.

The U.K. provider of subtitling, dubbing and media-localization services said revenue for the quarter to the end of June is expected to be at least 15% ahead of the year-earlier period, and the company said it looks to the future with optimism.

Recent contract wins and extensions have resulted in a significant increase in demand, as the impact of the coronavirus pandemic on the media-localization business has caused a shift to cloud-based services that favors Zoo, it said. The company said it hired an extra 13 people since February.

For the year ended March 31, Zoo reported a pretax loss of $47,000 compared with a profit of $1.3 million a year before, due to a noncash write-down of the value of embedded derivatives. Revenue rose to $29.8 million from $28.8 million, it said.

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