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Zinc Media secures £2.5m of new business since lockdown; predicts 40% fall in revenue July to

By BFN News | 09:31 AM | Thursday 21 May, 2020


Content producer Zinc Media said it has won £2.5m of new business since lockdown began but that it anticipates revenues will be 40% down on pre-Covid levels in the period July to December 2020 before 'strengthening thereafter'. The company reported that new business is 65% of the pre-Covid-19 level of booking but added that this was won 'at a time when many TV companies saw revenues dry up completely'. Zinc Media announced a further £2m of business that was already in production was paused during lockdown but is anticipated to resume later in 2020 and that £0.2m of production revenue was cancelled due to Covid-19. It reported having a further £6m of production proposals at an 'advanced stage' with broadcasters, which it said can be produced under social distancing guidelines. Zinc Media said that broadcasters' commissioning budgets have been reduced as a result of Covid-19, with drama and sport most impacted, although it expects unscripted factual television to be more resilient. The company made £0.5m of savings in April and May through a combination of furloughing staff, reducing hours, and overhead savings with overheads reduced by 31% compared to pre-covid-19 levels in February. Chief executive Mark Browning said: 'I am pleased that the transformation plan for the Group remains on track. Despite the Covid-19 pandemic having forced us to change our planned route in some of our businesses, the end destination remains the same. 'Forecasting is exceptionally challenging given the economic uncertainty but we continue to win business across the Group, margins are improving and we have reduced costs.' At 9:31am: (LON:ZIN) Zinc Media Group Plc Ord 0.00025p share price was -0.5p at 50.5p Story provided by StockMarketWire.com

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