ZOO Digital Group plc ($ZOO)

Hello, and welcome to ZOO's Investor Webinar, which is titled the next chapter of streaming. I'm Stuart Green, and I'm the CEO. For those who followed the story, you will know that ZOO is rooted in the media and entertainment industry. And for those who don't, I'll just take a moment to explain what it is that we do. We're a technology-enabled service provider and we work for large streaming companies and content producers, entertainment content producers. And we provide services to them so that they can take their the TV programs and the future funds that they make and distribute them globally on different streaming services. So the services that we offer fall into 2 broad areas. One is localization adapt that content through subtitles and through dub sound tracks. And the other area we call Media Services and it's to do with some technical things that you need to do to make sure that piece of content will play smoothly properly without glitches, properly synchronized when it goes out on to potentially one of many different streaming services. So we're in an industry that has undergone some major changes over the last 3 years, and you only need to look at the financial performance of ZOO over that period to appreciate how significant those changes have been. Those changes have brought up about -- have had an impact on the entire supply chain, which includes -- so and all of its peers. But after this disruption for 3 years, we're now finally seeing some stabilization in the market -- we're seeing trading beginning to normalize, and we feel that this is a good time to reintroduce the ZOO's story to the market and provide an update. So -- we have a teach-in that you're watching. And in it, we're going to cover 2 main areas: one, to provide an update on the changes that have happened in the industry and in particular, the changes that have taken place within our customers. And then secondly, to talk about the impact that, that has had on ZOO, how our competitive position has changed, indeed enhanced as a result and some of the financial implications that you might take from that. A key takeaway that we hope you leave this moment are with is that the market is moving, but it's moving towards to. And we are increasingly in a strong position to capitalize on the opportunities that lie ahead. So the way we're going to cover this is that I'm going to begin and provide an overview of the evolution of the industry. And then 3 of my colleagues who are going to join me, Internet permitting, I head our -- so first up will be Gordon Doran, who's our Chief Commercial Officer. He's going to focus on the commercial perspective around all of this, the changes that we're seeing in the requirements of our customers. and his segment is called the need for speed because that is a common thread that we're seeing right across our customers, the need to do things more quickly. So he's going to be touching on the new propositions that we've introduced over the course of the last year or 2, particularly fast track. And then following him will be Ewa Zawadzka who's our VP Operations for EMEA. So hopefully, ever, we'll be able to bring that to life by give you some kind of real-world examples of the kind of projects that we're running that are in our fast track offering. And then following ever Rob Pursell, who's our CFO, is going to pick up, and he's going to provide a picture for the financial implications of some of those things we've discussed. So following these presentations then, if you are watching live, we'll run straight into a Q&A. Myself and Rob will stick around, and we'll be very happy to answer any questions that you would like us to address. And you can submit them at any point, you don't need to wait until the end. If you're watching live to the right side of your screen, I think you should see a tab with a questions section. Feel free at any point to submit your questions there. And as I say, when we get to the end, we'll use whatever time we've got available to get through as many of those as we can. So let me begin then with an update to the evolution of the industry. As I said, it's a disruption that's lasted 3 years. Before I explain that, the reason for that disruption. Let me, first of all, just give a bit of context for what's happening, particularly in the consumer markets. So if you are in any doubt, be assured that we are very much in the streaming age. So there's now -- today, there's more content that's consumed through streaming than through any other method from network television, optical media, anything. Streaming is obviously widespread right across the globe. So there are streaming services that operate in practically every market. Although some markets now from a subscriber standpoint, relatively mature, particularly U.S. and U.K. The number of subscribers to over-the-top services is still growing globally. And indeed, it's forecast to continue to grow at least until 2030. So bear in mind, obviously, this is a line of services, streaming services that were introduced firstly in 2007. And back in those days, the kind of content that you would watch on the streaming service was really primarily indeed exclusively films and episodic TV type programming. But now streaming is becoming the new television, but with a difference. So it's the new Television because what we're seeing now is all genres available on streaming services, just like TV. The difference, though, is that these services are global. So what you've got in the streaming platforms is a global broadcast proposition. So if you compare that with local broadcast that have been traditionally have dominated the industry, so I think BBC, ITV, and so on in this country, there are very different dynamics at play if you're delivering to a global audience. For 1 thing, you could amortize the cost of making programming across a bigger audience because clearly, you've got folks who live in different countries. But what that means, of course, is that when thinking about the content that you make, these organizations are designing that content to have appeal on an international basis, and that obviously requires that content then to be local audiences. A leading market commentator in our arena is a company called Ampere Analysis. They're doing lots of pretty lots of interesting research. They recently identified in 2025, the spend on producing entertainment content, that was the first year in which more of it was spent for by streaming companies than it was by any other category of company. And that gap between spent by streamers and by other groups is widening further this year and beyond. If you look at the global spend in 2026 as forecast on entertainment content is about $255 billion. So as well as the structural shift that we're seeing in the companies that are spending that money towards more by those global streaming companies, there's also some significant shifts of that have taken place around where that content is being sourced. So in particular, more and more of it is coming from international locations. So in the days of traditional network television, years ago, it would be pretty unusual to see a Korean drama or indeed content from many different international locations. But now Korean drama in particular, are obviously a huge hit on these different streaming services. What we interest you to know is that after the U.S. and the U.K., the third largest exporter by volume of entertainment and content at the moment is Turkey. And in the case of Turkey and Korea, what you have there countries that have a long tradition of producing great quality content where historically, that concept was really consumed locally now through streaming its reaching global audiences. So back to my original premise, which was there has been disruption. So why is that? And it really comes down to the fact that in streaming, companies are operating quite different business models. They're monetizing that content in different ways that have a strategic impact on the way in which they conduct their business and the way in which they produce that content. So in particular, we've seen a huge decline in advertising and licensing revenues that come through traditional network television that has had a big detrimental impact on traditional media organizations. What they're doing increasingly, of course, now is making content that is better suited for global audiences where in the past, it's been much more of a local focus. And importantly, they now view content production as something that content is something that forms part of a portfolio that is offered through a consumer streaming service. So that's to say that content is seem less and less as a sort of isolated pieces of programming that sort of stack up in their own right. They now have to be viewed as part of a broader offer subscription service to make sure that, that offer in that service includes content across a wide variety of genres that will have a wide appeal in the market, not only to different demographics, but also to different geographies. So content is more -- is thinking about commissioning content, that's much more of a portfolio proposition now than a sort of stand-alone type proposition as it was historically. So this obviously has a big impact on content production strategies. And it also has a big impact on the talent who use to produce that content. So hence, the reason for the the strikes that took place in Hollywood a few years ago where writers and actors were on strike for a prolonged period because the business models on that we use as the basis of the remuneration are kind of shifting. And so in effect, in the streaming world, they were compensated to a lower level than they had been in when this content was really monetized primarily to network television. So hence, there was a need in the industry to address that, and there was some disruption, but there are now new agreements put in place to make sure that that's remedied. So major studio is our customers, particularly those traditional organizations had a big shift in focus from 2023. That led to some significant downsizing. There's lots of M&A. You've seen some of the big changes that have taken place. There are others that are still in progress now. But the outcome from all of that is the 3 years on most traditional studios are profitable, which is obviously great news. Through this period, we have seen lower levels of out of original programming from those traditional studios as a transitory thing. And that's because that -- the kind of content they're producing, as I mentioned a moment ago, has -- they've shifted their focus. And obviously, if you change your strategy around what programs you make, it takes a little while for that to work its way through to programming that actually reaches the streaming service. But also, it's important to note that making original programming is costly and it's high risk. And so 1 of the effects of that, that we've seen has been that there has been a much greater level of licensing of content. So that's both our customers lasting out their programming to others as well as licensing third-party content put on their streaming services. And obviously, that's a lower risk undertaking for them. As I say, this is -- we think these shifts are transitory. And as this year, we start to see the the industry normalize, we think that we'll see a kind of return to some of the patterns we saw previously, albeit with off the back of sort of different approaches in terms of the kind of content that's made by our customers. Studios have transformed themselves to be more efficient in this new world order of streaming. And there are a number of aspects to that. One of which is that they've been striving to reduce the time to market. So if you think about what happens and where we fit within the value chain, when a program has been completed, there's a piece of work that needs to be done by companies like us to make -- to localize to package it so that it can be played out on 1 of the most different streaming services. So the word that we do essentially is becomes a bottleneck to getting content to consumers. And consumers -- and customers want that to happen faster. So just over example, a typical SLA for high-quality doubling in our industry is 30 days. So a big vendor would receive original materials coming from their studio clients and 30 days later, they would deliver the Dobson tracks back to the customer. And that's too long. In this new world, that's just too long. Another key development that we've seen is that streaming becomes this new television than the kind of content types that previously you would have seen on local TV channels, and now coming to streaming platforms as well. So the most obvious of those is sports. So now increasingly, big streaming services are buying up rights to show sports on their platform. But also other time-sensitive content is coming on to streaming as well. Where programming is shown live or very near life very soon after it has been recorded. The fact that there are global audiences for this content means then, of course, that the localization of that quick turnaround content has gotten much faster than it ever was before. One example of 1 category of content that we're seeing huge -- where we're seeing huge growth is in podcasts. So obviously, Podcasts were originally a phenomenon in YouTube. They're now available through all sorts of different channels. They started out as being audio only. Now 71% of podcasts that are produced are video-based, -- it's a huge growth area. Audiences are growing by 40% year-on-year, and its growth is being driven by Gen Z and millennials. So it's a really important demographic that, of course, our customers are very keen to capture. A lot of this content is -- in some cases, it is stream live. In other cases, it is streamed very quickly after it is made. So again, time to market is key for this very time-sensitive content -- and we're seeing more streaming services offering podcasts on their platforms. Micro Dramas is another important development in the market. It's the fastest-growing format in entertainment. If you've not come across it, I urge you to read around a little bit. It started out as a kind of a niche type of content coming out of China on platforms like TikTok, it's grown very quickly to be an $11 billion global industry. So microdramas are just that, they are dramas, but they are mobile first formats. So they designed to be continued on your mobile phone. They're usually vertically orientated for mobile consumption. Episodes are typically 1 to 3 minutes long. And these formats are now being adopted by major Hollywood Studios. So they're using their own brands to start to produce lots of new content that's going to be consumed in these ways. So again, requiring a very fast turnaround. So what do all these changes mean for ZOO? Well, first of all, through this period of transition, we have seen what we believe is a temporary subdued demand through lower levels of app of original programming from our major customers. That we believe will start to change this year. We've also seen our customers a greater proportion of the work we do for them is in relation to license content. Now when content is licensed from a third party, there is inevitably less dubbing that's required for that content because because typically, if you're licensing something you won't invest in doubling for your -- for distribution. Now traditionally, in our industry, of the spend on media localization, 70% of that spend is distributed doubling. So that shift from lesser volume of original programming to license content has had a disproportionate impact on the levels of demand of dubbing in our industry. This has been prolonged. This has been ongoing for 3 years now. But we are seeing some significant greater levels of activity from our customers now. We seem to have come through this process. That's partly evidenced by the number of requests for proposals, RFPs that we've received in recent months. We mentioned that in some recent trading updates. So we do believe that this is the industry is coming out the other side of this. And in 2026, we'll start to see some normalization of demand. So through this period, our customers' needs have evolved. So the -- because they are -- they have fewer people to manage relationships with their vendors, for example, they're looking for simplified vendor engagement. So they want fewer vendors but each of those vendors has to have an end-to-end capability. That means to be able to do all the localization, all of the media services. They're looking, as I mentioned, for faster turnaround. They're looking for partners, vendor partners, who are aware of AI because clearly, they see AI as the future, there's no putting the genie back in that bottle. It's affecting so many areas. Entertainment is certainly 1 of them. They want to be sure -- our customers want to be sure that they're partnering with vendors like to that -- who will not only embrace AI and use it where it actually makes sense and adds value, but also they will themselves see benefits of that adoption. So that I think is a great segue to our next speaker. So Gordon is up next. He's going to expand on that changing commercial landscape that I've touched on there. And in particular, he's going to talk and explain how ZOO's proposition plays exactly to those changes.

Thank you Stuart. So my job today is to what's the need for speed to why do people need it? Why is our customers asking for it? And what we're doing about it -- so we started looking at traditional turnaround times that has been in the industry for a long time. Typically, 10 days, 14 days, a couple of weeks to make some titles. Dubs 4 to 6 weeks, something around that is a certain normal time line. But things are evolving for our customers, and therefore, they need things to be done a little bit differently. And the reason that they're evolving is that they are looking at different types of content rather than that traditional episodic content or feature film where those time lines would work well. Today, their content needs are very much evolving towards a lot of short form content. Charter content could be these micro dramas that I'm sure a lot people have seen. Podcasts, things like that clips, things that are also quite topical where we can't wait for 46 weeks to get a localized version out through the door to have to look at something much, much quicker. So that's an area that we've identified is really important for our customers. And therefore, it's obviously something that's the really important for us. So for the past couple of years, we've been evolving how we work to its to go much, much faster. And when I say much, much faster is going from a dub from 4 to 6 weeks down to 24 hours. In some instances, we've been able to do it for some time line, again from 10, 14 days down to 4 hours and less is kind of what we're looking at. So to be able to do that, you have to have a few things in place and be really focused on certain areas. First part of that for us was a true follow-the-sun mindset, where we have our ability to work 24 hours a day on any type of content that comes through. So I talk about subs and dubs, because they are to the certain main areas from a localization point of view. But for us, that also includes metadata artwork, media service and i.e process and the venue coded the video packaging all those things up together and then deliver them on the various platforms. So for us, that NT model that we spoke about in the past, really utilizing that. But with a follow the sun mindset where we can operate 24 hours a day, 7 days a week, 365 a year. That's really, really important to our customers because we have to be available and the able work in their product whenever it comes through the door. So we've -- the past few years, we've really looked at how our business is set up Burkhard where our production teams are and how they're able to utilize them effectively, like I say, -- so that's 1 leg of it, making sure that you're all operate as a business constantly. Another side of that is technology is how can you apply technology sensibly to make sure that you can hit these goals or our customers for the turnaround time on the various products, but then also how do you maintain that quality level that nobody expects. And so yes, technology is 1 of the first parts that we look at, how can we deploy that catch the AI, but how can we deploy that technology sensibly, not just for the sake of deploying it. But we actually make a real impact for us. And so we've focused a lot of energy on that previously, we were working on days and weeks in terms of how we do something today, it comes down in minutes and ours -- and in that anywhere we can shave off 20 minutes here, 15 minutes there, 10 minutes there. Has a big impact undergone cycles that we're looking at. So really dissecting what we do at a very low level, understanding the technology and be able to across the board, everybody just thinks about the machine translations or LRM being used for language a lot of other areas that we can deploy that technology, which has had an immediate impact on the speed that we can go out, but then it also allows us to make sure we maintain that quality with humans in the loop, whatever they should be a part of the process as well. So I see a combination of those things go hand-in-hand. -- technology, but then making sure we have humans and look, whatever it makes. There's some to ensure that it's a high-quality output that we give to our customers. So like I say, by accommodates those things rather than 47 deploying the technology, human in the loop, we've been able to really shrink those windows down, which is something -- we found a really resonate to our customers. Way beyond just that short form of live content. Obviously, live. You have to do relax, because it's live. So very, very short-sale, people be able to I expect to be able to see that in their native languages as quickly as they can, drives engagement for our customers, which is really important. But also, we're finding that just traditional work as well. Add those 4- to 6-week turnaround times. Certainly, if we can produce that in 7 days for a hubs or obviously much less for some timing within the words, that actually has inherent value as well where they can get their product and the market much more quickly, get people engaged and with them much more quickly, engaging with the platform, especially a 7 up in a lot of these are tiers as well. Now -- so high engagement across all these genres is really important. And as I said before, -- for the competing with people's eyeballs with TikTok as other platforms like that, that they are in competition was to get people attention and to make sure they're on their platform. So we've -- like I said, we've really doubled down on that, and we've seen that is a great growth area for the business in the past couple of years. I mean, it went from very little revenue to drawn it the moment. So it's an area that, like I said, we've really focused our energy on because I think is an area where we can really differentiate ourselves. We have this technology-first approach to what we do. We have the platforms that we've built over for a very long period of time, which we're really able to utilize now as we deploy new pieces of technology to deploy technology and you've got a platform to deploy them on. So we're able to do that really, really efficiently and quickly -- and that enquiry to our customers' needs. So -- that's the real need for speed. It's driven by our customers and working really closely with our customers. One would like to show you now is where the rubber meets the road what it actually look like in practice? And I'm going to hand over to my colleague, Ewa, who heads up our production team in Europe. And she will give you an explanation is okay in practice, how do we do that? How do we take it up from 4 to 6 weeks to complete 24 hours to be able to do a dumb high-quality dump for our customers. So I'll hand over to Ewa and she can take you through all to that. Thanks.

Thank you, Gordon. I will now walk you through 1 of our recent projects. Case study you want to present to show you how -- how it works in practice, how they're executed. The project I want to present to you was 1 -- for 1 of our main future clients, and it was for their live programming. The client requested a German voice over debt within 24 hours from us perceiving the video in all the materials and pretty much from when the program finished. Just for comparison, a standard debt takes around 3 to 4 weeks. We worked very closely with the clients. We -- this helps us with the preparation work. So there -- there are a few components that are very crucial for live programming and for those super accelerated. It's big projects and subtitling projects. We need to work very closely with the client to know the exact start time to know as much about the programming as possible. We obviously won't receive the script if it is live. -- programming. So we were working closely to understand what will be happening in the show, what the cost is getting their descriptions so that we can prepare ahead of time. And that takes me to the first stage so that operation work of the project. This is a very important stage. We start a couple of ideally, a couple of weeks ahead of time. Again, this is different to standard programming where we would start from receipt of the asset. From receiving materials from the client. Here, we start ahead of time. We cost, we set -- not only the creative team, our internal teams, linguistic teams ahead of time. Everything is planned -- according to the start time of the project. So to take this project as an example, in the U.S. during their time we received the video and audio materials at 4:30 p.m. So during our planning stage, knowing when we will most likely receive the materials, we planned the initial stage to be prepared and executed by our colleagues in our U.S. office. From there, they were handing over and everything was preplanned to our other offices so that it happens during their day time. This is the only way we can really sustain these type of projects to work around the clock and to have and to hand over and follow the sun as we call it. So as you'll see on screen, now I'll present you different systems of our results so that you can see how we pass that on, not only from colleague to colleague and from office to office, but also from system to system so that it's secure and it doesn't leave our ecosystem. So in this case, we received materials at 4:30. Our colleagues downloaded them and uploaded into Zoom Media, which is our system where we hold all our materials. And from there, it links to all other systems, connected, and it's secure. Once it was uploaded, we would link it to ZooScripts, where we would utilize AI, automation, our systems are crucial for those projects. So working closely with the client, we would use Zooflex to automatically create the script. For live programming would not receive a script. There is no script because it's unscripted content. So Zooflex would time it for us and also script. So we would receive that automatically. Now 1 of our editors will be going through the script to make sure no mistakes or no mishearings are introduced in the process, so we always combine AI or automation with humans to make sure we don't introduce any mistakes. The editor -- once the editor has gone through the text ZooScripts. We moved that again, into ZooFlex where we select 1 of our translation models. This would be the first path of translation. Again, you will see now on the drop down, screen on the drop down, we will -- we would be picking the right model. So we have a model agnostic approach. We don't have 1 translation tool. We selected tool that is best for the consent for the language and for the project that we're working on. So here, we selected the the right translation model that we thought was for this content and the first part of translation was created from here on. So at the minute, I'm walking you through the systems, and obviously, we'll move on to the different. This is from here, we contacted 1 of our translators that the translation is ready and the light up resources went in to again make sure no mistakes were introduced in the process of automatically translating. They were adapting the script, while our studio was already analyzing the script, preparing it and the director was ready to start recording. So depending on the project, in this case, we enter time to complete the translation and moved on to recording. However, we can do that in parallel as well. Our system allows that just in case we had any delay or needed to for any time purposes. Once the translation and adaptation was complete, we moved on to our recording stage. Here again, if you look, you can now see in ZOOdubs and -- in ZOOdubs, again, you can report in parallel, you can have several people recording the project. And just going back, as we -- when we do the translation, we would make the translation both for dubbing and subtitling and the editors would go and added that text for the purpose of either subtites or dubbing, which has to be slightly different. Once we got to the recording stage, we were recording in parallel. Again, a lot of the process have to happen in parallel. We have to cut time wherever we can in such faster and around time projects. So here, you can see, it's for the purpose of the presentation. So it's not the actual project. As we cannot share that content. But you can see we're recording in parallel. As soon as the recordings are complete, we will download and add it if we need it for time here, we had to add it as well as we were recording. We would edit the dialogues, make sure everything is correct and move on to our studio. Would at that point finish, it would be their end of the days. In this case, they finished late their evening and it went into our centralized mixing facility. Again, utilizing the 24-hour approach, so making sure we mix during the daytime of that particular office. The QC, once we've mixed, there is a QC stage results to make sure the audio is correct and there are no mistakes, nothing happened. We don't need to fix anything and deliver to the client. So as you've seen on the systems, nothing leads our systems, it's secure, but it also allows us to introduce automation where it makes sense, but also have a human in the loop to make sure it's corrected QCs. All of those processes in the case of this project, once we completed during the daytime in Germany, in our studio in Germany, the other offices took over and the process was completed in the U.S. where it was their daytime and also where we were delivering to the client again during U.S. daytime. Depending on when the project starts and which what the client are we could -- we might use more automation or less. So all those projects are very agile and flexible. So we wouldn't just use 1 size for all projects. It really depends, and it's working very closely with the client and seeing what really they would want. We wouldn't use only 1 or the other. What is most important is just to recognize that ZOO recognize all of those stages need to really happen around the globe. It needs to be to follow the sun model. And as I mentioned, we need to work very closely across. Otherwise, it's not possible to deliver or sustain. It is possible to deliver, but it would not be sustainable to do that at scale if we couldn't utilize different time zones. Now the pending is on the budget of the clients. So it's all very flexible budget, automation, workflows or what's the start? What's the duration of the project, whether they need subtitles, whether the subtitles need to match the programming or not, everything has worked very closely with the clients. Our studio is alas a part of the dubbing. We need to deliver a lot of other components. We need to deliver the ZOOcards, which lists all the cars. We need to deliver force narratives for anything that wasn't that that needed -- that was an image -- so all of those processes happen as well in different offices, depending on the start time of the project. And now as I was touching on the budget result of the project, I wanted to hand over to our CFO, Rob, who can expand a bit more on budgets and how...

Hopefully, Rob, was not able to join. So we've got a few questions that are presubmitted that we'll go through now. And then -- and feel free to submit the questions as we're speaking, we'll cover as many more we can in the times available.

So the first question I tend to do in the demo -- are you showing a real customer project. so in other section. So just to clarify what we did there. The projects we work on for our customers, they're covered by nondisclosure agreements, and we can't give details and show assets that belong to those customers. So we basically substitute some of our own content in the demo just to go straight how the process works. So that wasn't customer data. But the project that ever described as very much a real project that we worked on for our customers and the time line that you spoke of and the engagement of people in different locations as all part of. It was very much the case that played out in real life. Next question is, what live projects have you actually worked on? Well, again, the reason I just said, we can't actually disclose the specific details of the individual projects, but we're working on fast turnaround projects that fast track, the really super accelerated service as well as just delivering a much faster version of existing services that are available in the industry. We've been doing that across a range of different clients. So it's not -- it's not 1 or 2 clients now. It's several of our major customers, including major streaming companies. The kind of content that we worked on have been some sports-related content. And in fact, the case study that so that was kind of sports-related type program. But we've also worked on, on other genres to things like game shows and quiz shows and all manner of things really that -- where the customer -- have they just want thing usually that they just want a much faster turnaround that would be the norm within the industry. In terms of actual -- the true fast-track projects, those have been mostly in the area schools, but with some other genres too, where we've delivered diving in 24 hours, as be described and subtitles in sort of 3, 4 hours, as Gordon mentioned. Okay. Maybe one for you, Rob. Tells what orders you've already received fast track how many customers you have touched on it already, but how much revenue maybe you sort of cover that way we got to.

As sure. I say, as I said, currently, the revenues -- it's around 10% of our total revenue. So if you look at the revenue we've released for the year, $42 million. So it's just over $4 million is the run rate of FastTrack business. Now said, that comes from a few customers. And in terms of where that could go, I mean, does -- when you look at our customers, we've, we've definitely got 1 who's more progressed in terms of understanding how they want to use their content, how they want these localization. And so that's a quite good run rate business for us at the moment coming in every month. And there's definitely another couple of customers who are trialing and testing where they are. So we're getting some business from them. I think there's quite a good opportunity to grow our revenues further. So yes, like I said, I think it's a great opportunity. It's very early stages. So it's hard to really get a sense across the entire customer base where it can end up. But I think even from where we are, the amount of revenue is generating is really encouraging.

Thanks very much, Rob. A question from Simon. Does your system/AI create a learning process for you? For example, the nuances that might require a human to step in should or could update your systems once to avoid that issue being again. Yes, that is very much part of the kind of the loop back mechanism that we've built into the way in which we're deploying -- so our use of AI, we are, as I've shared in the demos, we're using a lot of off-the-shelf available systems to leveraging existing technology where it kind of makes sense. In other cases, we have done much tighter integration with certain AI-type capabilities in order to adapt them so that they better so the specific requirements we've got in our area. Next question, 1 for you, I think it comes from Tom. What proportion of revenue was FastTrack in '25 '26? And how has it scaled since March '26. I'm assuming sort of a maybe meeting March '25. So as I've said to it's around 10% of revenues. It's got up to a run rate of around around $4 million at the moment. If I go back right to the start of the year in March '25, I mean it was pretty negligible. So that has -- that run rate has grown quite substantially. -- through the year. As I said, there's certainly 1 customer really getting up to speed with how it works for them and giving us that record mount of business. So yes, it has been I think even the previous question when you talk about learnings, it's really been a very important year for us. And I think we've learned a huge amount during the year in terms of how to make it work for us for our customers. And also potentially, where could we reduce speeds even more? Could we actually look at providing other solutions and other flexibility when it comes to those 3 key levers of price, quality and speed. So it has -- I would say it has -- for us in terms of the scale, it is now, it has scaled very rapidly during the last financial year. Thanks much, Rob. So the next question, I think, is probably 1 for you as well. How material do you think Fast Track could become as a percentage of group revenue? And what does this mean for the profitability of the group?

Yes. I don't think I'd like to try and guess what it could become. I think I would expect it to increase from where it is today. So from the run rate today, like I said, I think there's a lot of opportunity, a lot of conversations going on. And so in terms of the absolute amount, I would expect that to go up. What that means as a percentage of our group revenues obviously depends on how the rest of the business goes. And in terms of profitability, I mean, it's a good 1 if -- if it becomes a significant part of our group. It is, as I've said, margin enhancing. It's a premium service that we charge more for. So that would potentially increase overall group margins. But at the same time, just within that, some of the conversations that we're having its opening on the doors. So it's introducing other potential revenue opportunities, particularly ramp-up, which is a lower margin business. So we could end up seeing the mix of the business changing. And so again, I would have like to try and give a a sense that, that's definitely going to increase our margins. It should go to revenue type, it's open a lot of other opportunities for us in terms of the conversations we're having with customers. And that in itself, we will help improve the profitability of the group.

Thanks, Rob. The next question is about pricing. We've obviously got to be a little bit careful of commercial sensitivities around this, but maybe this is another 1 for you to take, Rob, if that's okay. What is the price premium on FastTrack how much higher is the gross margin manufacturing expedited staffing requirements?

Yes. I mean in terms of the pricing premium, that's certainly not information we sort of want to make public. And we discussed this with our customers, we discuss what they want. And again, the nature of what they all the languages, the actual speed, some of the other requirements determine the price that we're upon. But it is, obviously, as I said, margin enhancing. And in terms of the gross margin, what we're currently doing is we can manage a good amount of that within existing staffing requirements. As we've said before, it's not about everybody having to work over time and doing 24-hour days and the incremental cost of her, we move the work as the dam moves and then we can move that to our different teams. So it is a premium service. The tracks are premium priced. Our freelances are translators would expect to and share some of that So I think it's probably as much as I can really say on that.

Thanks Rob. Yes. Question from Andy. To what extent is Fast Track featured in your recent RFP conversations, has it actually made a difference to the outcome of those RFPs -- that's a good question. I think -- and we mentioned -- I think we mentioned in our statements that the the nature of the RFPs that we see now is somewhat different from what we've seen in the past. A few years ago, customers weren't especially interested in any technology that you may have if it's technology that you use internally to do your work, as far as they were concerned, they sent new assets, you process those assets, sent the results back, hopefully within the time frame to the required quality degree price and everyone was happy. But there is a -- but thematically, the way in which customers are expressing what the kind of partners they want to work with going forward. And these RFPs I should say, almost always to do with sort of partnership framework engagements that will -- that are not project specific, that they would -- they essentially determine sort of the relationship, the commercial relationship over a period of 3 years or something like that. So what we've seen in the recent ones that we've processed in the last few months, has been that customers are taking a much, much bigger interest in technology. They want to know that the partners they're working with are innovative, understand the tech that's out there, how that technology can benefit the service provision. There obviously expect that if technology is being used to make things more efficient and they will be beneficiaries of those efficiencies. So -- to what extent the FastTrack future in your recent RFPs, well, certainly, we have made it clear that this is the capability we have. I think for our customers, it's a real indication and endorsement of the fact that we are a progressive tech-enabled business, but we can offer things that many others can't. And I'm sure that, that has been a deciding factor in some of those decisions. Next question, how much of FastTrack has accelerated delivery? How much of FastTrack and accelerated delivery is new demand? Or does it cannibalize existing demand? I think I'll maybe take that. So I think that there's -- so to be clear, FastTrack is a -- in its most extreme scenario is a new service in the industry. Being able to produce a dub, a high-quality dub in 24 hours. That is unprecedented. Anything like for us is just unheard of within our industry. So where there is an opportunity for that kind of service, it is usually related to new market and industry requirements such as these new forms of content, the podcast, these macro dramas and all the rest of it that require but need to get to market really quickly and they just want to get this process. They don't want localization to spend in the way of getting that content out to the consumers. So there's definitely incremental opportunity here. And that that opportunity from a market-wide standpoint is coming from those new content types. But in addition to that, there is work that's certainly coming our way that is work that would have taken place anyway. But where the customer is looking for that work to be processed and delivered in a much shorter period of time than would have previously been possible. So if we can do that and at the same competitive rights as others, then clearly, that puts us in a very advantageous situation. So I don't think in that case, what we're often there is cannibalizing something. It's actually providing competitive advantage for ZOO to win business over other vendors that aren't able to offer a service on that kind of time frame. Next question. FastTrack is truly differentiated, why shouldn't we expect competitors to offer similar turnaround times within 12 months? Well, of course, as the demand for these services grows and there is more of this content, certainly, we would expect our customers to be encouraging other vendors to offer these services, because obviously, no buyer really wants to be beholden to a single supplier. So clearly -- and there are already others who are looking to do this, but for all the feedback we've had from our customers at the moment, ZOO is the only company that's able to deliver on these time frames at scale, to these quality standards. So we certainly have a first-mover advantage here. And obviously, our air is to be able to capitalize on that. Next question I'll let you cover -- Rob, if that's okay to do with resourcing of FastTrack. So Fastrack is very resource intensive. How scalable is this model if it's adopted by more customers.

Yes. I mean, that's definitely something that we look at and keep an eye on. I think it's I think the first point to make is that we've got the technology in place. That's up and running. We've got the extensive freelance network and pace of people really to jump on the system. And workings I said, the project had over 400 combination of employees and freelancers all working at the same time. So that gives us a scalability, that's already built in the solution. We can add more freelances we keep getting the people connected. Probably the 1 area that we may have to resource up, which just as the company grows, we'll have to resource the scenario up anyway. It's not just part of FastTrack is looking at the project managers colleagues, who are without really trying to sort of keep a life project, what you may go from stage to stage, working with the customer to make sure everything is going well. So I think as the number of projects increase that we probably need to look at in increasing project relates. But really, the actual -- the main cost in terms of the freelance is the translation work that's going on. We've already got a very scalable network and freelance the network and technology that can come.

Great. Thank you. You previously said that customers value quality above all else -- are they now willing to sacrifice some of this for faster AI-enabled speed. So we're not seeing that at the moment. That's not, I would say, a feature of the kind of projects that are coming away they -- our customers have set a very high bar for quality and they don't really want to compromise that. Obviously, they have this new content and they have some challenges on how they can get that content to market faster, and we are clearly in a position where we can provide them solutions for that. But there are no indications that they're prepared to tolerate substandard localization, for example. So the bar -- the quality bar doesn't move or hasn't moved that we've seen so far. And I would expect that in the main to continue. I mean I think there are there are sort of types of content that were -- where the publishers have got lower quality expectations, sort of things like user-generated content on YouTube and elsewhere, where a publisher may be a sort of a creator working on their own, where they don't have a lot of budget, where the content is very quick and easy and inexpensive to produce and where they just want to extend their reach because their income comes through a share of advertising through YouTube or other platforms. So no settings where rivals lease more ad income, it's all incremental. Those are the areas where AI is being used almost in some cases, an unsupervised way, because it's just about getting the content out there, even if the take-up in particular countries is not high, anything incremental is incremental income for for an individual creator. So those are the places where we think where quality can be compromised. But in the with the focus that we have on the kind of customers that we serve, we've not seen any indication that they're prepared to lower the bar on quality. Okay. How will you -- I let you do this one, Rob. How will you report on FastTrack going forward. Will it be stripped out as a separate revenue line or included under localization or media services?

Yes, at the moment, no plans to kind of formally separate out in terms of the reporting, because it really is just part of -- it's part of subtypes part of the doing stream as part of pooled services. So it will encourage the growth that encourage the profitability in those segments. But it will always be part of them. So I don't think we'd formally separate it out. But just as we've done now, I think, giving some sort of guidance in terms of how relevant it is and how it's progressive will be really important.

Great. Next one, could you provide some context on the financial benefits to your customers in getting non-time-sensitive content to market so much faster. So the kind of scenarios that we are -- if you're a streamer and you've invested a lot of money in creating some new original content, as soon as you've got that content, you've incurred that cost. You want to start recouping that cost as quickly as you can. So you obviously want to get that on your platform and available to audiences globally. So as we're saying, the work that we do is the thing that stands in the way of achieving that. It's the last step. You make the content, you do the things that we do. The media services to format everything for the platforms and the localization to make it accessible to a wider audience. Those are things that come last, and then you get -- and then you can launch on your platform and consumers can view it, obviously. So it's -- I think a lot of instances, it's really just about starting to recoup the investment at an earlier date. It could be -- in some cases, there have been where it's clear another supplier has let a customer down. So I said they can do it by a certain date, but then they couldn't, but that content has been promised to a platform to go out on a certain date. And so there's a compressed time line within which to do it and that work has come to us. So there are instances that sort -- can you think of any other examples or other the I think.

I mean probably less to do with dubs, certainly when customers license other people's content, they can license for a fixed period of time, a certain cost. So being able to bring it to market quicker, being able to get that platform quicker I'm imagining we'll maximize the amount of what they receive their return on that investment. There's less time of it at shelf waiting for it to go to be stringing -- and that's probably more subtitling because I think when they license content, the tend to subside does it. But I think that's potentially not the reason why they just might be interested in getting something kind of quicker maybe not as we said, in the 3 hours or 24 hours. But that's certainly getting out quicker than they can previously have done.

Correct. Just month for the time a couple of more minutes, so maybe it's time for another question. So I'll take this one. How much of FastTrack is dependent on ZOO's proprietary technology versus third-party tools. Okay? So certainly, we do use third-party tools and ever show that in the demo. If there is an off-the-shelf solution to do a certain thing, does it low, and we can control it in a way that enables us to make it fit seamlessly within our production workflows, then we will use it rather than -- we don't finally need to reinvent wheels. So when we do invest in new software product development. It's in relation to capabilities that we don't find elsewhere that are so specialized and optimized for our use cases that we just need to we just need to create something up around that does that job. So we do use this combination of the body tools and our own proprietary software. Our platforms are sort of the backbone of everything we do and the way we design them is such that we can easily drop in third-party tools to do certain parts of the process. And in fact, you saw that again in ever demo where say, for example, the the automated translation using AI that you can go in there and we've integrated a whole range of different third-party services, and we can pick the 1 that you think is best suited for that. for that particular job. So we've sort of taken a sort of platform-agnostic view there in terms of third-party capabilities that we'll just use whatever is the best-of-breed technology. The way we're interfacing with those tools is via is via application programming interfaces, APIs that they expose. What that means is that we can -- we're working sort of under the hood and have usually a much broader scope of control of the way in which that third-party software does what it does, then would be afforded to just a regular user using ChatGPT in a brand window or something like that. So the effect of all of that is it gives us a competitive advantage. It means that we can integrate third-party tools within extends and obviously, leverage their capabilities. They're very affordable. Certainly, the cost of using them, we can accommodate those within our -- the customers -- typical cost of sales that we incur. So optimizing the workflow is what we're all about. So our process has run smoothly and efficiently. And to that end, we will use a combination of our own stuff and third-party stuff as it makes sense. So is just reached a quarter past, in fact, I don't think that there are any more questions. I think were nice to get through everything. So I'd just like to wrap up by thanking everyone for attending. This recording will very soon be available to people watch offline and share it with your colleagues. I just like to thank all the speakers. And also to my colleagues, I ask Andy who been behind the scenes pulling levers to make sure this all runs smoothly. So thanks for them. And thank you again, and we'll see you next time.