ZOO recently gave a Q1 update, highlighting that trading has been affected by two temporary market issues. First, the ongoing cost cutting among major streaming providers, which is holding back order flows. Second, the industry-wide strikes, which are impacting localisation and media services work on new titles. We reduce FY24 estimates to reflect these issues, as detailed below. However, we expect project workflow to resume with ZOO well placed, particularly given recent acquisitions. We therefore introduce FY25 estimates with revenue at $115m and adjusted EBITDA at $19m. The group also detailed an accounting policy change as part of its audit procedure. This change relates to IFRS 15 interpretation, specifically third-party costs matching invoices received (rather than revenue recognition). The impact is to increase adjusted EBITDA in FY23E by $2m, but with a downward restatement of FY22 by $1.2m.