Zinc Media posts strongest first half performance since 2020

(Sharecast News) - Zinc Media Group has posted its strongest first-half trading performance since launching its transformation strategy in 2020 on Tuesday, underpinned by major contract wins, a growing international footprint, and a streamlined business structure. For the six months ended 30 June, the content production group secured £35m in revenue for recognition in the current financial year, up from £27m a year earlier, with an additional £5m in advanced discussions.

"The group has delivered excellent results through the first half, and we remain confident in our ability to continue to grow revenues and operating profit over the coming years," said chief executive Mark Browning.

"Our first-half performance is the best since we introduced the transformation plan in 2020 and is being driven by some of our biggest contract wins ever and most talked about TV programmes in the world."

Zinc said it ended the half with a strong cash position of £4.2m and net cash of £0.7m.

The company also unveiled new medium-term targets of £50m in turnover and £5m in EBITDA, with a strategy centred on three growth pillars - Middle East expansion, entertainment television, and IP-led revenues.

It said the Middle East remained a major focus, with a new production base opening in Saudi Arabia and recent delivery of a £2.6m live event in the United Arab Emirates.

The company said it expected regional revenues to double in the coming years.

In entertainment, Zinc's newest label, Electric Violet - headed by former Strictly Come Dancing and the Voice executive producer Andrea Hamilton - was targeting at least £4m in revenue by the 2028 financial year, and had a current pipeline of £18m in early-stage opportunities.

Meanwhile, Zinc said it was ramping up monetisation of its back catalogue and formats, including 5,500 hours of owned IP.

In the first half, it launched a dedicated YouTube channel featuring Bargain Loving Brits in the Sun in partnership with Fremantle, and announced new commissions including the Inner Circle, a BBC One quiz show hosted by Amanda Holden, and Race Against the Tide, a new reality series for the BBC.

The group said it had also simplified its operating structure, integrating its television labels under a single management team and fully incorporating live events division the Edge into its central platform.

It said the changes were expected to deliver an additional £300,000 in annualised cost savings, realisable from the 2026 financial year.

Zinc operates nine television labels across the UK and internationally, with recent programming highlights including Live Aid at 40 for BBC2, Hunting the Shoplifters for Channel 5, Special Ops for Dave, and Queens of Combat for Paramount+.

The company described its current visibility and order book as the highest on record at the half-year stage.

At 1145 BST, shares in Zinc Media Group were up 5.47% at 72.25p.

Reporting by Josh White for Sharecast.com.