Revenue grew +44% h/h (+29% y/y) as content generation began to normalise post-strikes. Whilst Netflix, Paramount and Warner Bros spoke of the importance of the quality and quantity of their shows during their Q3 results, recovery will take longer than expected (by y/e 2025). ZOO continues to control costs to ensure it’s well positioned for the recovery. Reassuringly for ZOO, the OTTs are taking a more global approach towards content generation, ZOO’s digital-first approach is a differentiator here vs the legacy competitors. We downgrade our FY25 forecasts to rev $55m, EBITDA $3m and cash $2.9m, and a 45p TP, 14x FY25 EV/EBITDA.
