Zinc Media Group expects 2H20 revenues to exceed 1H20
said 2H20 revenues are anticipated to be higher than 1H20 revenue while pre-booked revenues for 2021 have more than doubled to £9.3m from £4.1m in November.
The TV and multimedia content producer reported a further £5.2m of new business for 2021 secured in the run up to Christmas, which sees it start 2021 with £9.3m of booked revenue.
The Company said it finished 2020 with ‘increasing momentum’ with the London-based TV business winning a one-off Panorama commission for BBC1 and breaking into a new market with its first ever commission from Amazon Audible which is expected to diversify revenues.
Zinc hailed the new commission from Amazon Audible as ‘a significant strategic success’ for the Group as it follows the restructure in 2020 which aligned London TV, the Group's two radio labels and Zinc Communicate into ‘a cohesive team.’
"It is very encouraging to see the Group end 2020 with a flurry of new business across all divisions in the Group. I am particularly pleased to see Amazon become a new client with the Group through their Audible division, as this opens up a slate of new opportunities in audio and television,” commented Mark Browning, Chief Executive Officer of Zinc Media Group.
Shares in Zinc Media Group have increased by nearly 12% in the past two weeks to open 8.55% higher this morning at 63.5p following the announcement.
The Group said it continues to develop a ‘healthy pipeline’ of new business opportunities for 2021 and beyond which sits at £43m with £5m at an advanced stage, £15m in engaged discussion, and £23m in early discussion with potential buyers and commissioners.
‘The current Covid 19 lockdown presents new uncertainty for the start of 2021 and could cause some short-term delays to both production and commissioning in Q1,’ it explained.
It said due to production protocols established during 2020, as well as government support for the industry, it is hopeful that this lockdown will be ‘less disruptive’ than the March lockdown.
“The Group is operating much more effectively, and now surfacing new opportunities following the structural changes we made in 2020. Lockdown 3 creates yet more uncertainty; however the Group has a strong pipeline and I remain positive that once Covid restrictions lift we will be able to convert more of this pipeline and continue to build revenues again,” said Browning.
He added, “Once this happens, and following the improvements to our gross margins, and reduced cost base, we will be able to deliver profitability and cash generation.”
The Group's cash position as at 12th January stands at £5.9 million, and the Group said it expects to issue its final results for the 18 month period ending December 2020 in April.
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