ZOO Digital Group plc (ZOO) Earnings Call Transcript & Summary

Good afternoon, and welcome to the ZOO Digital Group plc Final Results Investor Presentation. [Operator Instructions] Before we begin, I would like to submit the following poll. And I would now like to hand you over to CEO, Stuart Green. Good afternoon to you.

Thank you very much, and welcome, everyone. Thanks for joining us for this presentation of ZOO Digital Group's FY '26 Full Year Results. I'm Stuart Green, CEO and...

I'm Rob Pursell, CFO.

So we'll kick off. Here's an important slide. I'm sure we can all speed read that because we haven't got a lot of time. We'll quickly move on to summarize who we are and what we do. I imagine there are lots of folks on this call who knows us pretty well, but for the benefit of those who don't. So in a nutshell, we work in the media entertainment industry. Our customers are big streaming companies and content producers. What we do for them is take their original programming, had also some back-catalog programming, and do what's necessary to get that on to many different streaming services in lots of different languages. The different language treatment is through subtitling and dubbing and various other things that we do as well. All of that, we do using proprietary technology that we've created over 15-plus years that gives us a competitive advantage in the market. It makes us very efficient and scalable in what we do, and we'll cover that in a lot more detail later in the presentation. Before we get into the guts of it, we'd just like to kick off with our investment thesis, particularly in light of the fact that those who followed the story will know, over the last 3 years has been somewhat hellish in our sector because of lots of disruption that's taken place as big traditional media companies have transitioned into the streaming world. But we're now seeing lots of indications they're through the other side of that. That's great news for us because we're now experiencing a return of levels of business that haven't been there for a few years. And I think it's appropriate for us to just kind of refresh, remind and also refine this investment proposition. So Rob?

Thank you. Yes. So this is really why we like you to have a look at ZOO and what we're doing. So first of all, we now have a business model that is generating profits and generating cash. It hasn't always been the case in the last few years, but that's certainly where we are now. Also, we are operating in a market, and we'll talk a bit more about this later, that is now growing after a 3-year hiatus when there's a lot of disruption and a lot of decisions have to be made. But not only is that market growing, we think we now have the opportunity to take market share, and that's due to the new services that we're offering and we'll speak more about. We like to think we've already started to prove this. So we've announced recently that we've been very successful in the number of RFP proposals. People are asking us about new business and new contracts, new customers, and we're already delivering revenue from them. And we'll come on to see that this year has been a really important year for ZOO, and there's been a lot of changes, a lot of reorganization. But throughout that, we have been able to maintain that product strategy and make sure that we're still able to compete for that business, and we do that very successfully. Now within that, we are a tech first business. And over 15 years, we have been building IP and technology platforms that allow us now to really feel that we are at the forefront of this market. And it's that investment that we feel is and will carry on differentiating us from competitors. Part of that, obviously, AI. We've now integrated that into the majority of our workflows. This again will take us through that. It's not everything, but it's certainly a big part of what we've been doing. And beyond all of that, what we've always done throughout all the disruption, through all the changes that we've made as we've always delivered top quality to our customers. And in fact, in FY '26, our quality scores improved. And again, we'll show you that later. And without that, this is the primary goal that we have to hit, quality is never negotiable. So having to go through these changes and maintain that quality has been a great success. And finally, we already have and have had for many years relationships with all the major buyers in the market. And we can show that some of those relationships are already going from strength to strength. Okay.

Great. Thanks a lot, Rob. So for those who haven't got a huge amount of time, we'll just give you a really quick thumbnail of what we're going to be speaking about in this presentation and the key themes that will come across based on what we've accomplished in the course of the last year. Firstly, we've resized and reshaped the business to deliver profitable trading and cash generation. That's involved as restructuring our cost base and it has also involved us embracing AI and implementing it throughout our workflows, that is now delivering higher margins. Our FY '26 results, as Rob has mentioned there, were in line with market expectations. So that's obviously an important starting point. Our market has evolved. We've seen lots of change over the course of the 3 years. What hasn't changed is the need of our customers to have extremely high quality and authenticity in the work that we do, and that's particularly applicable to localization, of course, where those localized versions of programs have got to be as good. The experience has got to be just as good in other countries, that's where people speak different languages as it is in the original country of where the program was made. So quality and authenticity are absolutely key. And what that means is that you've got to be really careful about how you go about doing this. And right now, whilst AI helps, and we'll talk about that in a moment, we do need humans to make sure that it's getting the answers right. What is changing though is that our customers require these results in a much shorter time period than ever before. We see a growing demand for content formats that are brand new to streaming. The kinds of things that we're seeing on network television in the past, but now they're coming to streaming, and they are time sensitive and they require a very fast turnaround and therefore, a need for a much faster delivery. What we're finding from our customers is that through over the last 3 years, obviously, AI has emerged, and they recognize that this should be -- have helped to them in some way. So they very much want to be working with partners that are tech savvy, that understand the tech, that are enabled with technology and that can deliver these faster turnarounds perhaps through the use of AI because that's clearly a key driver for where they're heading. So actually, our customers are favoring companies like ZOO that have those credentials. And again, that sets us apart from many others who don't come from those origins. So whilst the market has evolved, we have evolved, to o As we said, we've restructured the business. We've launched what we call our Fast Track service and a 7-day do service. These are all to address these very fast turnaround requirements from our customers. We've implemented a follow-the-sun model, which effectively gives us a 24/7 service to our customers, which is, again, has become an emerging requirement of the market. So as we look ahead, we are expecting to take a greater share of a market, which is continuing to return to growth. We've reported an encouraging outlook for the year. So we had a strong first quarter of FY '27, and that gives us a lot of optimism to return to revenue growth and further profit progression during our FY '27. So with that, we will head over now to the financial review, and Rob will take it from here.

Fantastic, thank you. Yes. So going to start just with some quick highlights. To reiterate what Stuart said, we hit market expectations in the year. Now what you can see there, so revenue has fallen. So it's fallen by 15% down to $42 million. That was expected. The reason it was expected, FY '25 benefited from a backlog of work that came from FY '24 because of the writers' and actors' strike in Hollywood. So we knew that was coming, but there's also been a subdued demand for dubbing in the year. And that really reflects a less original content being created by our customers. But it was expected. So we knew we were going to see declining revenues, but we also knew we had to get the business back on the right foot again. And that's really what you can see in the following graph. So despite that lower revenue, our EBITDA has increased from $1.1 million to $4 million. Our cash EBITDA, which I've got the details of what that has done there, but it really reflects the underlying cash generation of the business. And that's moved from a loss of $2.7 million in FY '25 to positive $400,000. So not a huge amount, but certainly back in that position where we are now generating cash. And as we've said, we expect that to increase as we go forward because we've got the right size base, we finished all the reorganization, we finished rightsizing the business, that was completed in the year. And also, gross cash. For those who've been following ZOO for a while, there was certainly some concerns about cash flow over the last couple of years. But as you can see there, cash balance is still looking healthy. So bottom line is, we rightsized the business. We're generating profits. We're turning those profits into cash. And we feel that's now created a platform, not only financially but operationally, that is allowing us to get on the front foot for FY '27. Okay. So looking at things in a little more detail. So this is a summary of our P&L. So yes, revenues down. I've discussed that as to why that would be there. Looking at customer concentration. So historically, we've always had a very large customer. In FY '25, that was 61% of the revenue. In FY '26, it's come down to 44%. And 44% is still quite large for customer concentration, and we expect that percentage to carry on declining. Excluding that largest customer, the rest of our accounts have grown by 22%. So within that revenue number, there really is an underlying generator of growth that reflects the fact we are being able to diversify our customer base through the services that we've been developing. Within there, you can see, so we've got our cost of sales line, and we've got our operational costs. Now we've managed both of those down to a level that is allowing us to certainly deliver EBITDA profits. Within our cost of sales, we have a mix of third-party freelances, do all the translation work, and we have ZOO employees. And we try and keep that mix at about 50-50, and then we've been able to do that in the year. And that means we have a good balance between knowledge, experience, relationships with customers, from our employees, but also the flexibility of a freelancer base that we can work with. So we've brought those costs down, and we've been able to do that, and that's been what certainly has helped significantly reduced that operating loss, but as I say, generate some positive EBITDA numbers, and most importantly, that positive cash EBITDA figure. So we always like to do this. So there's really 2 parts to the business. And they're linked, and I'll come on to explain that. But we classify them as localization and media services. And localization is more creative part of what we do. It's dubbing, it's subtitling, translation, scripting. Media services is when we get some content and we have to get it ready for broadcast on a streaming platform. And there can be various amounts of work that have to go on to do that. So that's more of a technical service, whereas localization is more of a creative professional sort of service. And so localization has fallen, but not by the amount that dubbing has fallen. And that's because we've got a very exciting new revenue stream in there, generates around $2.5 million in FY '26 that we call Fast Track. And Stuart will explain more about this later, but it has incredibly accelerated levels of delivery for these projects. And it's really helpful with live content, with time-sensitive content, and we had no revenues for that in FY '25, $2.5 million in FY '26. And currently, it's around 10% of our run rate existing revenue. So that's been a huge success story for us. Within media services, now we've had a slight decline there. Often, when you see that drop in localization, you'd associate a drop in media services because quite often, if we're doing the localization work, we'll end up doing some media services as well. But we've been working hard, and we've been able to support those revenues through a lot of actually licensing deals that have gone on in the industry where customers are buying content from other customers. So they don't really need as much localization, but they do need that technical service. And looking at the gross profits, localization margin has dropped a couple of points, and that's primarily because dubbing has reduced. Now we have reduced the cost base for dubbing, but we haven't done it as much as the revenues would imply. And that's because we want to maintain the capabilities of the organization within dubbing because we are confident that this is going to return. And also a lot of the wins we've had, a lot of the contract wins have been for companies that can provide all services. So strategically, commercially, it's important that we maintain that. And then we've done that, and we expect that to recover in FY '27. And with media services. We've actually been able to improve the margin there. A lot of that has been able to utilize the operations that we've got out in India, which are now fully integrated, up and running, doing the same work that we're doing in the U.S. and the U.K., and that's been able to allow us to provide the same services and quality with a slightly lower cost base. So all in all, those changes plus the change in mix has increased our gross profit percent from 36% to just under 42%. Now here, we've got a brief summary of our balance sheet. And I joined a year ago, and that was after ZOO had come through a couple of difficult years, as many of our competitors had with all the disruption in the market. And there's a real question about sort of cash, are we going to have to raise money? And there was a real question around, how do we stretch creditors too far in protecting that cash? So that's really where we started. And I think not only in terms of the business model, the profitability, the product development that we've been able to do. We've really been able to show some improvements there. So as we showed on the first slide, cash is up. But probably the main number there is we've reduced the trade and other payables number from $18 million down to just under $13 million. So that's a substantial reduction. Now we've done that in 3 ways. We've used some of our invoice financing facilities. You can see we've used $1.4 million of that. And we've got around $8 million in total we could use. So it's a small portion of the total, so that's helped. There's the cash we've generated, the business has helped as well. But also if you look at the trading of the receivables line, you see we've made a significant reduction there. So that's really reflecting the fact that we've been able to increase the speed at which we bill for the services and the work that we're doing. And also, we've been able to increase the time or reduce the time it takes to get paid. So all of those 3 things together, using sensible financing options, generating cash as a business, doing a better job billing and collecting cash has meant that we've been able to rebalance the balance sheet quite nicely, and certainly in a better position than we were at the end of FY '25. Final one here, a quick look at the cash flow. I mean this is really repeating what we said before that we're able to take those profits and generate cash from them and make sure that, that's coming through into the business. Probably one point to pick up here is the investing activities line. So the main bulk of that is the investment we make in our platform. So it's a capitalization of R&D salaries and work that's going on there. And that's really important for us because this is a platform on which we're able to do these, make these improvements. So we've capitalized about $1.7 million, that's up on last year, so $1.5 million. So despite paying down those creditors, we've been able to increase that level of investment, and it's probably not a surprise to know that the biggest project within our -- the big spend is actually the integration of AI into our various workflows and what that's been able to do for us. So hopefully, that's all clear. So this is just a tour of the main financial statements, and the results are now up online if you want to look through in more detail. Stuart?

Yes. So I'll pick up now and cover off the developments that have taken place within the market and how we've responded to those changes. So obviously, as I've said, we've had 3 years of disruption in our industry, and there's been lots of change has come with it. I think the way to think about streaming now is that it is replacing TV. And if you think about TV for a moment, traditionally and historically, TV has been a local market service. So think BBC, ITV serving a U.K. audience, [ Kanopy ] serving France and so on. So what's happening is that because the revenue potential from licensing for big studios in -- through network television and generating ads there is diminishing and obviously, the whole world is moving over to streaming, the same kinds of content that previously we would have enjoyed through network television indeed still do will be moving across to big global streaming platforms. That's already happening, and more of that is happening going forward. So think of streaming, think of global streaming service now is becoming the television of the future, but delivered on a global -- to a global audience rather than a local audience. So that's kind of a key change that has sort of emerged over this period of time. And one of the things that has come with that then, of course, is that streamers are looking at types of content that would have been common, that are common on [ unconventional ] local network television, commissioning similar types of content to go on streaming. So you're seeing sports, live sports coming to streaming, of course. You're seeing some news. You're seeing sort of daytime TV type content. Lots of different kinds of material, often which is very time sensitive, sometimes which is delivered live. And therefore, if you're now a global TV provider, you need to be sure that you can deliver that content to your global audience in a timely fashion. So what that is doing, obviously, is creating a demand within our industry for the kinds of services that we provide, but on dramatically shorter time scale than has ever been the case before. So what we're finding from our customers is they're looking for service providers. Firstly, I've got the credentials and the capability to deliver that first rate service that is, as I mentioned, is absolutely crucial, but also that are progressive and are able to embrace technology to be able to utilize it to their benefit, whether that's to save costs or more significantly, we're seeing to accelerate time to market, then they want partners who have that capability, and clearly that is playing to our strengths. So if we look at how we have evolved the business over these 3 years to respond to that need that we have seen and anticipate over that time. Firstly, as we said, we've restructured the business. We've rightsized. We're now optimized to deliver profitability and generate cash. We've got a much leaner and efficient model, and one that is scalable. We've continued to be progressive and innovative in our development of technology and also our adoption of the vast technologies, including, of course, AI. So one of the things we're very busy with over this period has been selecting AI solutions and incorporate them within our workflows where they make sense and where we can use them to the benefit of our customers. And what they are doing is enabling us to deliver a more efficient service, but also improving the outcomes for our customers. We'll cover this more in a second, but I just want to emphasize here that because of the nature of the outputs that are required by our customers, we absolutely have to have human supervision on the use of AI to ensure that there are no glitches, issues, mistakes that could be very damaging for our customers and then as a consequence for us as well. And so we've delivered on this requirement. We've been successfully and routinely now on a monthly basis serving customers with these accelerated services. We've demonstrated that we can do it consistently at scale. We are -- as far as we know from our customers, we are able to offer them the fastest turnaround speeds that are available in the market. We've been delivering our Fast Track solution for some live events and near live events. And we are continuing to innovate to do more of that and to do things even faster. So the outcome of those -- of that progression over the period has been, as you've seen, return to profitability and delivering a second year of positive EBITDA following this big industry disruption. We've deployed Fast Track for both subtitling and dubbing and media services to deliver really accelerated turnarounds. I'll expand on that in a second. We've got new dubbing propositions, again, that significantly reduced the time it takes to produce dubbed soundtracks, but without necessarily incurring additional costs on the part of our customers. And all this has enabled us to strengthen the relationships that we have with our studio clients who recognize that we are in a very strong position to be able to service them with these emerging requirements. So on Fast Track then. So what -- essentially, this is something that is enabled through a combination of 2 key things. The first is our progressive technology. The fact that we have automation and have been building for 15-plus years, automation throughout these workflows and more recently have embraced and implemented AI to take that even further. So those technology platforms differentiate us. We're the only company in the industry with this kind of capability. And that gives us a competitive advantage. But it's combined with the second crucial component, which is our ability to fulfill the services using those platforms with talented people delivering across 80-plus different languages. And part of that, and particularly delivering results at the speed that's now required, we need to have this always on capability. We need to operate 24/7. We have a way to do that, which is really efficient, and we call it our follow-the-sun model. Essentially, we have multiple facilities around the world, and we have staff within those facilities who can conduct the work, the required work during their working day. And then towards the end of the day, they can hand over to colleagues who are in a different location, that's typically west of where they live, that means that they can then continue to do the work in their working day. And in this way by continuing to hand over projects over the course of 24 hours, we have basically an always-on service. So that's absolutely crucial to the fulfillment of these services at these kinds of speeds. So we see, looking ahead, we see 3 important areas where growth can -- where we can see growth coming for the business. The first is as a result of these new content strategies that our customers have developed. And a big part of that is to do with this new emerging requirement. This addressable market expansion that's coming about because our customers now want these new kinds of content to be localized and delivered really quickly, and that's obviously calling on our Fast Track service and is creating an incremental revenue stream. It already accounts for about 10% of our revenue. We think that will grow going forward. And it comes in sort of 2 -- the use of these accelerated services comes in sort of 2 areas. Where the service needs to be super accelerated, really fast turnaround, then as in most areas, you can charge it effectively, what amount to rush fees for those things, you can charge a premium because, of course, you will incur additional costs in fulfilling at that pace. But what we can also use this new capability for is to deliver the services at the same standard prices that we've -- that are competitive in the market, but on much shorter time frames than is typically possible through competing organizations. So we can -- so it's enabling us to have a significant competitive advantage over others in our sector. The second area of profitable growth opportunities lies in the fact that we recognize our customers understand these new technologies that are appearing, AI and others, represent opportunities for them. So they recognize then that they need to be working with partners who are prepared to embrace those technologies and who understand them and can incorporate them and capitalize on them and share the benefits with them. So again, this is an opportunity for us to take market share because we are more like the kind of partner that our customers want to work with going forward than perhaps they have traditionally worked with in the past. And then the third area is the point that we've always made about our business, namely that as more consumers watch content through streaming services, there is an imperative on the part of those global providers to identify content that will appeal to all because it is in lots of different countries because, of course, that obviously extends the value of their investment in creating that original content. What that means, of course, is that that content needs to be localized into more languages, so it's more accessible on a global basis. So we're seeing ongoing growth in streaming coming from international markets that is in turn driving growth for localization. So we took ZOO around 5 strategic pillars. And so we'll -- in a second, I'll be providing you an update on those, on our progress against those pillars in the year. I want to start actually just to talk about our quality KPI. This is something that we introduced a year or so ago to indicate the caliber of the services that we provide. As we said, the customers that we serve, they need the highest quality of provision. And so some of our customers measure the performance of their vendors. They basically produce a rate card. They benchmark their suppliers. They measure their performance and they report back that performance to the individual vendors. So the numbers you see on this chart actually are not based on some subjective opinion of ZOO and our staff. They are actually measures that are derived from stats that's supplied to us by some of our major customers. Anything, this is showing -- this number, the headline number here is an indication of the quality of the service we provide. And 98% and above is sort of world leading. So as you can see, we're doing somewhat better than that. I think a really important point to recognize here is that we have gone through 3 years of industry disruption, and that has led to significant disruption in the ZOO business. And Rob has already explained that in the last year alone, our head count was reduced by 17%. When you do that, you expect things to break. And in our case, had things broken, you would have seen that evidenced in these quality scores. So what's really quite remarkable is throughout this period of disruption, we have maintained industry-leading quality KPIs. And that's because we're -- because of the way in which we go about doing the work we do, but also because of the meticulous and careful way that we planned for making that for going about that restructure to ensure that we, at no point, we were at risk of disappointing our customers of impacting our quality scores that could in turn have been detrimental to our ability to continue to do work for those customers. As I mentioned, AI is now implemented all the way through our workflows. I won't spend a lot of time on this chart other than to kind of just point out that it's indicating where we've already implemented it, where we are already working on further developments where we've got plans in the future. We first used it at the interim results. So if you look back to that day, you can compare and see the progress we've made. To save you the bother, we've made a lot of progress even in the last 6 months and all driven by these emerging requirements that we see from our customers. I mentioned follow-the sun. Here is a slide just to sort of highlight it. These are the locations of the business. And so a project might begin in Los Angeles if it's been -- if ever some content has just been produced in that time zone. Our staff there will work on it until the end of the day. They'll hand over most probably to their colleagues in our office in South Korea, who will pick up and continue with that and so on, it will pass around the world until that work is fulfilled. So that gives us that 24/7 capability. And it's possible because we have, in the period, we have ensured that we now have project managers with the right skill sets, the right sort of service-specific knowledge in each of the key locations that we have, and we are able to offer that continuity. And then these are the 5 pillars that we report against each set of results. These are kind of what drives us. Innovation is at the heart of everything that we do. As we said, we've introduced Fast Track and a 7-day dub service. Those are major innovations that are now driving lots of new opportunity in our industry. For our customer pillar, we've seen good diversification and expect to see more of that in the year ahead. On collaboration, our follow-the-sun model is now fully implemented, and we are using that on a day-to-day basis to fulfill fast turnaround projects for customers. On talent, we have -- we're increasingly leaning on our offices based in India. So when there are vacancies for additional staff, we'll always look first now to India and say, is this a position that could work efficiently out of one of our Indian locations? And if so, we'll progress in that way. And then on scalability, the fact that we have moved more of our cost to be variable, and we have this global ecosystem means that we have an inherently scalable operation now and perhaps more so than we ever had before. So in summary then, I'll just wrap up just by saying that we've seen a stabilization in the market after 3 years of disruption. Finally, and thankfully, we now see the market stabilizing, and we're now seeing much more customer activity. As we mentioned, this has given us a strong Q1 and optimism for the year. So customer demand is resuming after this protracted follow period. We've reshaped the business. We now can be more profitable, and we can generate cash even at a lower revenue. We have restructured the cost base, and we have implemented AI to enable us to deliver higher margins. And again, that's been evidenced in the year, and you'll see, I believe, more of that in the years to come. We have being able to capitalize on this opportunity for these new content formats that are coming to streaming that have the effect of expanding our addressable market. So that's incremental opportunity that right now, we are incredibly well positioned to take advantage of. As a result of these things, we expect going forward, we should take -- be able to take a greater share of a growing market. We mentioned the first quarter trading of FY '27, it was -- we've had a strong first quarter. That's very encouraging for FY '27. So we remain optimistic, and we believe we're on track to return to revenue growth this year and progressing the profit in the course of the year. Thank you very much. I'll now hand back.

[Operator Instructions] While the company takes a few moments to review the questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q&A can be accessed via your investor dashboard. Stuart and Rob, as you can see, we have received a number of questions. And if I may now hand back to you and kindly ask you to read out the questions where appropriate to do so, and I'll pick up from you both at the end.

Okay. Thanks very much. All right. I'm going to start with one that comes from Gary. The question is, the Board has mentioned that FY '27 has started strongly. Without requesting specific guidance, what operational indicators are you currently observing that suggest a return to revenue growth? Is that one you want to take, Rob?

Yes. I mean, obviously, the operational indicator is revenue. So what we've seen in Q1 is a really good response from the RFP wins, the conversations we've been having with customers. And Stuart was saying, there's almost this -- people have got more comfortable with what their content strategy is. The reason why they issued those -- all those RFPs was because they were really starting to get the idea as to where they wanted to go in this new world. And we've really started to see that come through. So whether it's actually projects we're working on or in projects we're talking about for Q2. It's been a really strong quarter 4, excuse me. So we can't say much more than that. But as Stuart said, I'm sure some of you in the analyst day may ask about that. But we are saying that we expect to return to revenue growth, and we expect profit progression. And what we've seen in Q1 supports that statement. So I think that's probably the best answer I can give for that right now.

Great. Thanks, Rob. So here's a follow-on question from Gary. Fast Track has contributed approximately 10% to group revenue in its first year. Can you expand on whether this revenue is new business? Or is it replacing traditional localization revenue? That's a great question. It actually falls in 2 categories. So there is a brand-new business that's coming about through this market expansion feature that I touched upon, where new types of content are coming to streaming, because that content is time sensitive, it means that the localization has got to be done much more quickly. And so consequently, there is a new demand that has emerged in the course of the last year. But right now, we are very well positioned to be able to fulfill. And obviously, we get on doing that, and we're doing that on a monthly basis. So that's kind of one category. Another category is just the general requirement that we're seeing across most of our major clients to have the results of our work delivered back to them more quickly than before. So one of the features that we're seeing at the moment in the market is that there's quite a lot of licensing activity going on between the big companies. So a big traditional film studio, for example, might license, might do a licensing deal for a whole catalog of TV series that might go off on different streaming service. So that will be a deal that has been negotiated. Once it gets closed, operationally, what needs to happen then is that, that content owner has got to deliver all those materials to the streaming service in the right form so that they can be uploaded onto that platform and then obviously, become consumable by the audience. And to do that requires the very least some media services, but it may also require some localization if that streaming service wants to go into other countries. Obviously, if they don't already exist, subtitles for a particular language there, then they need to be created. But even if the subtitles already exist, there's almost always some work that's got to be done to effectively conform, this is the term, pre-existing subtitles so that those subtitles are compliant with the particular requirements of that end of the platform. So all that actually is great margin work. It's stuff that we can do internally through our internal staff. And so it is a feature of those kinds of deals. But as soon as that material can be delivered to the licensee, the sooner their licensor will get their cash. So they want to do that faster than before. So they're looking to work with partners who can do things more quickly. And we think that we are kind of winning market shares to all of that. So a traditional provider they have used in the past is maybe saying, "Yes, I can do that for you. It will take us 4 weeks." We're coming along and saying, "We can do it in a week." And if there's significant price differential, then we can win that business. And so we're seeing some of that as well. Okay. I'm going to around a little bit here, just to mix things up a bit. So this is a question from Christopher who ask, for those of us who haven't been able to see any analyst forecast issued today, given the strong first quarter of '27 in the report, have the forecast for the year being upgraded? You could.

No. So they haven't been upgraded. I think they're only released fairly recently. And as we said, it's a quarter. So we've had a strong quarter. We are expecting year-on-year growth. We're expecting profit progression. So yes, it's a strong quarter, which is definitely encouraging for a year, but certainly not to the point where I would imagine the analyst, and there's a question of them would be wanting to change those forecasts.