In a trading update released today, Zinc Media Group (ZIN ) told investors that it expects Adjusted EBITDA in 2H21 to be ahead of management’s expectations at around £0.5m.
Zinc Media, a TV and multimedia content producer, has already booked £9m of revenue which is expected to be delivered in 2022, in line with £9m booked as at January 2021.
The Group is currently in ‘highly advanced’ discussions in regard to an additional £6m of commissions with a significant proportion of this anticipated to begin production in 2Q22.
During 2H21, Zinc Media Group generated Free Cash Flow (FCF) while its cash position as at 31 December 2021 stood at £5.6m, down from £6.8m reported as at 31 December 2021.
Zinc told investors that its current strong cash position means the company will continue to invest further in new talent and technology as it focuses on “building for the long term.”
In 2H, Zinc secured its largest ever TV series commission for Channel 5 and its first ever Advertiser Funded Programme (AFP) for Sky, respectively. It also secured two new live action productions for Red
Bull and Lego and launched its first commercially funded podcast series.
In addition, a ‘significant’ client of Zinc funded development for one of the world’s biggest SVoD platforms, which the company said has the potential to lead to a series commission.
Zinc said it had started the new financial year “positively” with these new business wins.
In particular, the company informed investors that its Zinc Communicate division had started the financial year strongly, with the publishing business booking at high levels and the branded content business winning a recommission for a sponsored podcast series.
Despite some delays to domestic and international commissions in the last eight weeks owing to the Omicron Covid variant, Zinc expects to get productions back on track by the end of 1Q.
CEO, Mark Browning, commented: “Despite a slower trading environment at the end of 2021 due to the Omicron variant, I am pleased with the Group’s performance. We expect to report a strong H2 level of Adjusted EBITDA and be cash generative in the second half of the year.
Browning said this achievement validates the effectiveness of Zinc’s transformation plan “and its potential to deliver healthy profits and cash as revenues recover to pre-pandemic levels.”
He said Zinc’s pipeline of highly advanced business is “encouraging,” including its client funded development for a major global SVoD which he said positions Zinc well for the future.
Follow News & Updates from Zinc Media Group: