ZOO Digital Group (LSE:ZOO) — Results for the six months to 30 September 2021

0:01 Good afternoon, ladies and gentlemen. Welcome to the ZOO DIGITAL PLC investor presentation for the six months to 09/30/2021. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Company may not be in a position to answer every question received during the meeting itself. Have the company review all questions submitted today and publish responses where it's appropriate to do so. These will be available in your investor meet company dashboard, and we'll be notified once they're ready for your review.

0:30 I'd also like to remind you that this presentation is being recorded. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Stuart Green, CEO and Philip Blunders, CFO of ZOO DIGITAL GROUP PLC. Good afternoon. Thank you very much, and good afternoon, everyone. Could you advance a couple of slides, please?

0:51 Great. Thank you. So the services and technologies that are provided by ZOO are central to the growth of the streaming video market, and this is an industry that's growing very rapidly now. There's more content that's being produced from more countries. It's being delivered through more services, through different streaming platforms like Netflix and Disney plus, and it's been made available in more countries, which means that it needs to be localized into more languages. And these are all these are all fantastic conditions for a market in which we can play with our with our proposition. So we've been experiencing two tailwinds over the course of the last year and a half, really, and and they account for this strong growth that we've reported in our first half results.

1:39 And first of all, what we're saying is that new original content, which has been on hold for the past eighteen months or so whilst studios have been unable to create new TV series and and feature films, they're now resuming. They're being completed, and we've now started to receive orders related to localization of that content. Also, catalog content, so that's content that has been produced in the past, is continuing to be migrated onto streaming platforms. And and indeed, we're seeing that move forward at pace, and that and that's continuing even though the new new title production has resumed. So we're seeing these kinda combined, these two things, these two factors that are driving demand for our services. And off the back of that, we've obviously delivered some significant growth in the period. Next slide, please.

2:29 And one more, please. Thanks. So what we do at ZOO is we make life easier for the for the people, the companies who entertain the world. And what our services do is that they ensure that film and TV content can be enjoyed by audiences wherever they may be in the world. And that means making that content available on different platforms, different streaming products, and also in many different languages. And we do all of this using proprietary cloud software, which gives us a competitive advantage in the market. Could I have the next slide, please?

3:06 We we're working in a large and growing market, which for for the services that we deliver, we estimate to be about there to be about $1,500,000,000 of addressable market, which means that our current market share is only about 3%. We're growing strongly and therefore we there's an enormous amount for us to play for. We've been prioritizing revenue growth in the recent period over profitable growth in order to be able to grab more market share and to grow the business strongly. And as you've seen in the year in the in the first half compared with the equivalent prior year period, we grew by 64%. We're an innovator in what has been a traditional bricks and mortar supplier base, and our technology provides us with a competitive advantage that we'll expand on a little bit in a moment.

3:58 With a scalable operation, and that scale comes from the cloud software that we create together with a very large pool of freelancers that we work with. We have approaching 10,000 of those people now located all around the world who provide us with the essential services for what we deliver in translation, in voice acting, and in in direction in order to be able to do subtitling and dubbing. We're well funded for growth, and we earlier this year, we did a share placing and raised just over $10,000,000 specifically for growth capital. Could I have the next slide, please? And one more slide, please. So just take you a few through a few of the take you through a few of the operational highlights for the period. First of all, I mentioned our platform ZOO Studio, which is a like a specialized ERP system that's designed specifically to deal with the particular requirements preparing content for delivery on streaming platforms.

5:02 That's that platform is now well embedded within a major studio and and service streaming service operator, and we have invested more of our resources in developing that platform further in order that it can be deployed more broadly within the organization and more deeply. In addition, we've secured another licensee for the ZOO Studio platform. This is with a US based multinational media company who is using the platform as it transitions its proposition onto streaming platforms. Obviously, we've shown very strong growth in the period. And just to break that down a little bit, our localization segment was up 30%, and that follows the resumption of new productions which have become ready to be localized towards the end of our second quarter.

5:52 Our media services segment was really, I guess, the star of the show for these results, which grew a 142%, and that's due to this ongoing migration of catalog content onto the streaming platforms, but also multiple territory launches of existing platforms into new regions. We've continued to grow that pool of freelancers that I mentioned earlier. We grew the number by almost 20% and that's a very important resource for us that we'll continue to to expand as we move forward. We also established a new service for mastering, and we secured a first customer for that service. And I'll I'll expand on that a little bit in a moment. And then finally, we've started to implement our global growth initiative, and have made a first investment in a partner company to establish ZOO Turkey.

6:43 And, again, more of that in a few moments. So I'd like to hand over to Phil now, perhaps you can advance the slide to cover the financials. Thank you very much, Stuart. Hello, everybody. So these financial results for the six months reflect our upgraded strategy of revenue growth. And as Stuart has already mentioned, revenues are up 64% compared to the same period last year. But the the key factor here in in our p and l is the increase in investment that we have made following the placing of the $10,000,000 that we took Stuart mentioned in April. And what is which is great news for us is that our our gross profit margin, our EBITDA margin, and we made an operating profit as well.

7:31 So so all the key financial indicators are all all very positive even though we have invested very heavily in the period, and I'll be talking a little bit more about that on the next slide. The other strengthening of our balance sheet besides the fundraising the conversion of the loan notes. We had £2,600,000 worth of loan notes. They were converted into equity in September, and now the the company has relatively little in terms of borrowings, and will save about 300,000 a year in interest payments. Next slide, please. So a little bit more detail on the profit and loss account. As Stuart's already mentioned, the revenue growth driven by the media services and also the subtitling, which is one of the categories within localization.

8:22 For those who are new to the story, our cost of sales has two main components. The first one is the freelancers. And due to the sales mix, that increased by about two percentage points in the period. The other element of cost of sales is our own production staff. And this is one of the areas where we've invested very heavily in the period because of the future growth that we can see in our order books going into f y twenty three and on and beyond. So we spent about $2,700,000 more on project managers, on on translators, and and English staff, and QA staff that we that we we charge their costs through the p and l. But even after all those costs, we did manage to actually increase our gross profit percentage by by 1%.

9:13 Obviously, in future periods when this investment reduces, that gross profit percentage will go up quite significantly. The other area that we or the other areas we said with the increased spend post the fundraise was r and d, up 42% in the period. And, also, we have recruited 10 business development directors around the world to help us to to crack international markets and also find the best talent for our dubbing division as we build up that freelancers for the next phase of our growth. So operating profit even after those additional costs. And then just looking at the loss for the period, two one offs that won't reoccur.

10:00 The first one being with the conversion of the loan notes at 48 p compared to a market value of £1.30. We had to take a fair value accrual through the p and l of 971 k. As I say, that's not going to occur again. It's a noncash item as well. And secondly, the costs of the fundraise, about $600,000, also went through in the period. Finance costs going forward will be probably less than 200,000 per per annum, so a significant drop going forward. Thank you. Next slide. So just a little bit more detail on the different divisions that we operate. So localization, as I mentioned earlier, is subtitling and dubbing.

10:48 Even with the investment in extra people, we show that the gross profit on that division improved from 15 to 21% in the period. Longer term, we'd expect that gross profit in a steady state to get above 30. Media services, which includes a raft of technical type services, digital packaging, conforming, etcetera. Also, mastering will be included in that in that segment going forward. Huge investment in people in that department and that as well as the sales mix being slightly unfavorable saw that gross profit drop from mid sixties to to mid fifties. And, again, in a steady state, we'd expect that that gross profit to go back up again to over 60%.

11:39 But as I said earlier, even with this big investment that's going on in the business, we still managed to improve our gross profit by one percentage point. Next slide, please. A little little bit bit about about our our balance sheet. Some some key changes from the same period last year. The first one being that in the period, we took a ten year lease on a expanded space in Sheffield, 19,000 square feet. And IFRS 16 prescribes that you create an asset, a right to use asset, and a right to use liability. So that's the main movement on our noncurrent assets. Trade debtors were up 70%. One customer had its year end at the end of September and pushed $2,000,000 of of payments into October.

12:33 We we track about fifty five debtor days on receiving cash from our customers, and I expect that to be back to that stage when we get to the full year. Prepayments includes the costs of the fit out and also a big expansion of our IT network to cope with the future volume of assets from our customers, you you know, know, movies and TV shows, that $2,000,000 will be moved into fixed assets

13:05 in the second half of the year as we start to use them and therefore depreciate those assets. So you will see at the year end a much reduced trade receivables and other debtors line. Cash, over 8,000,000, so in in good shape. And then finally, from me on on the balance sheet, with the elimination of the loan notes and the embedded derivatives, there's a significant reduction in our short and long term liabilities. So a very clean balance sheet. It's in good shape to help us grow the business substantially over the coming years. Next slide, please. Which leads me neatly onto our our sort of medium term ambitions with the business. This is a slide that we've shown investors for the last two years.

13:55 When we first showed it, first column was 30,000,000.

13:59 Twelve months revenue is now 50,000,000. So so we're we're nearly halfway to that stepping stone. We see a 100 just being a stepping stone to a much bigger business. But what this slide now shows you compared to previously is that we've expanded our addressable market. We see media services being a much larger proportion of our our business, which is good news because it's the most profitable service that that we operate.

14:28 And dubbing, which is the newest service for us, the execution risk has has been reduced significantly now that we're targeting 35% of revenues to get to that 100,000,000 down from 55 when we first put this slide up. So so, again, great progress towards that medium term goal, and I look forward to updating you on that in in six months' time. Thank you very much. You're on mute, Stuart. Oh, is that better?

15:01 So I just said a few words about our market. So we we're obviously serving a professional market, a somewhat niche market, and where in which the buyers are those companies that are producing and same content or distributing that content to consumers. And there are two those two segments that Phil spoke of there, localization and media services, are are the places where we've looked to obtain some data to give a sense of what, you know, what is being spent in the market on on these kinds of services more widely. Now there is some market independent market data available for media localization. There isn't, unfortunately, anything available on media services, so we've had to come to our own estimates for those. But overall, we think the total global spend on the kinds of services that we provide is about 3,200,000,000.

15:55 Now ZOO is targeting large and mainly at the moment US buyers of these kinds of services, and we estimate that their spend accounts for about $1,500,000,000. So we consider that to be our addressable market. So a very large market for for us to address. In the past, actually, the buying of these services was significantly devolved and was the services bought were bought in territory by individual companies. But what we're seeing increasingly is that the buying is being more centralized in out of essentially, it's typically for these large US media companies. And as a consequence, we've we've increased for those who've felt sorry for a little while, we've increased our estimate of that addressable market a little bit to reflect that, as well as the fact that we've now introduced our our mastering service, which gives us a new revenue opportunity, which we'll cover in a second. The next slide, please.

16:57 Thanks. I've got now three slides just to give you a sense of how the consumer market for streaming services or over the top OTT distribution of content as it's progressing. So these slides are illustrating some of the important trends that we're seeing in the growth of the market, and the first covering consumer adoption. And, obviously, you won't be surprised to hear that more consumers are switching to using OTT services as their dominant way of watching entertainment content. And that's been to the detriment of certainly optical discs like DVD and and increasingly now pay TV services, which has been in strong decline, particularly in The US. Interestingly now, if you look at The US market, there are more households that watch their content through OTT services than those that watch it through pay the traditional pay TV approach.

17:48 Interestingly, the number of subscriptions that consumers are taking in in US households at least has been has been growing quite strongly. So before the pandemic, we believe it was around about three, and it's now up to four different services for an average US household. And that seems to be holding strongly. There was some speculation that once we come through the other side of the pandemic and we have less TV watching time available, then folks would start to turn off some of those subscriptions. But that doesn't appear to be the case. So that that definitely supports the, you know, a rationale for having multiple operators of streaming services in the market. Go to the next slide, please. So thinking about the overall market then for OTT from a a consumer perspective, clearly, the international dimension of that is is very significant. And indeed, it's this is where the bulk of growth will come over the coming years. And, of course, it's in delivering into those international locations that creates enormous multilingual requirements.

18:57 Looking at the value of this market, in 2019, it was estimated to be about a $122,000,000,000, and it's now forecast to rise to over $1,000,000,000,000 by 2027. On this slide, we're showing the the key markets that are showing the strongest global growth. As you can see, there are sort of emerging markets, you know, markets, countries in which many consumers are owning their first mobile phones and their smartphones, so they have the means to watch entertainment content on a mobile device and also a bank account with which to pay for that for that subscription. So these are very important markets for our customers, and and then consequently, they're very important markets for us too. And we're make taking strides to establish inroads into these regions, and we'll return to that in just a moment.

19:45 Go to the next slide, please. As I mentioned, content production resumed in our second quarter, and there is certainly more content to come. You know, the the spend the global spend on content production is already at record levels and is forecast to continue to grow further. An an interesting dimension to this is the appeal of non English content, and I'm sure many people have heard about the incredible success of a a South Korean drama series called Squid Game, which was a Netflix original program that has been the the most popular title for a period of time in across 90 countries. So that that that trend, that, you know, the the appeal of non English content is very significant in our business because it means that there is an enormous international catalog of content out there that over a period of time, which would span into many years, could be migrated onto streaming platforms, and that clearly creates greater opportunity for our business.

20:48 Go to next slide, please. Of course, this market is the Internet market is all about streaming. And and and in in switching to streaming, it has undergone some enormous changes. It's moving at at a completely different pace now and on a different scale from the way it has progressed in the past. The buying requirements are much more challenging now for our customers, and indeed, the the kind of issues that I've put on this slide are challenging for the traditional vendors of these services. So our competitors are in the main traditional bricks and mortar type organizations that have many facilities in many countries around the world and have constraints on their capacity. And the the proposition that we have built with our cloud based platforms and our scalable resources through a large freelancer pool gives us the means to be able to address these significant industry challenges.

21:46 Next slide, please. So ZOO has been leading the digital transformation of this sector through technology innovation, and we've been creating a series of cloud platforms that enable us to deliver end to end solutions to our customers. What those platforms do is enable us to support collaboration with that global network of freelancers, also with many studios and other vendors around the world, and to provide significant efficiencies of the way which we work and scalability to be able to address the demands in the market and to deal with those all those issues that I identified on the previous slide. Next slide, please. I mentioned end to end services there, and and what I mean by that is that ZOO is effectively a one stop shop for our customers for all the services that they need in order to deliver content globally. So, obviously, a big part of that is localizing that content into different languages, but also there is lots of technical work that needs to be done to make sure that that this material is compatible with the different platforms and works seamlessly when it's played there. There are very few vendors in our industry that have this end to end service capability and fewer still who can operate across all the language that we're able to operate.

23:04 What we're finding is that the largest buyers in the industry, the ones that we're primarily targeting, are increasingly favoring working with end to end vendors rather than to divide the various services that are listed on this side amongst different vendors. And and therefore, again, our proposition is becoming increasingly attractive to those to those customers. The next slide, please. And when I talk about customers, of course, I'm referring to the biggest names in in entertainment, the world's greatest producers and distributors of episodic TV and feature films. So we already work with major Hollywood studios, all the major streaming companies, and lots of other producers of content besides.

23:50 The next slide, please. So we've been breaking the mold in our industry. We've taken a completely fresh approach through this technological innovation, and we're very future focused. And as a consequence, we have excellent ESG credentials, certainly when when compared with our competitors. So unlike our competitors, we're not dependent on having an operation in every country, and that means we don't need, you know, lots of offices in in lots of countries. We don't require people to travel, and so we have we're very environmentally friendly in comparison. So we built this business on addressing this this you know, the new economy, the new environment that we see now in the entertainment industry, and we're very light in terms of our need for infrastructure and for capital.

24:37 In the year, we commissioned an ESG audit and just wanted to mention that from our next annual report for the year to March 22, we'll be reporting that in detail. Next slide, please. So we have five pillars of our strategic plan, and what I'd like to now do now is just very quickly take you through each of those five and the in particular, the progress that we've made in the first half of this year. Next slide, please. So ZOO DIGITAL GROUP is our r and d facility. We employ now over 50 people who are developing this innovative software. And a big focus of the energies of that group in the period have been on ZOO Studio, as I mentioned earlier, in order that we can embed that technology further, more deeply, more broadly within our customer organizations.

25:32 So one of the areas we've been investing in there has been on providing financial functionality for for modeling, for reporting, for invoicing, and integration with client systems. We've also developed a new platform that we call ZOOOVOLT, which is an asset management platform. And there are lots of asset management platforms out there, but what's special about this one is that it's very closely coupled with all of our platforms, and it enables us to very efficiently and very securely synchronize the availability of source materials from our customers, which, of course, are very large data files across our multiple locations around the world. And this is an important prerequisite of our global growth initiative that we'll come on to next. Can I have the next slide, please?

26:21 So as I mentioned, scalability at ZOO comes from the it's enabled by the software platforms that we've created, and it is it it which in turn enable us to work with these thousands of freelancers all around the world. Now to date, we've operated very effectively from our operations in The UK and in and in Los Angeles, and more recently, we've established an operation in Dubai. But as the market is expanding globally for OTT services, as I mentioned previously, those key growth markets are important ones for us to be focused on in order to be able to expand that freelancer pool to to, you know, to bring on to our books more voice actors, more translators, and others in the languages of those regions and countries.

27:14 So the way we're going about doing that is to establish a point of presence in in those locations by making investments in some partners who we've worked with for a number of years. And the first of these is a company called Ares Media based in Istanbul, and Ares is a company we've worked with since 2017. They, like all of these companies we'll be targeting, have made a commitment already to work within our systems, and they already provide a range of services quite similar to the service range that we offer, except that they are focused primarily on the the local languages of their region. So within through this investment with Aries Media, we have established ZOO Turkey, and that gives us a presence in a a country that is very important for the major streaming companies because of the excellent quality of of drama series and and other content that are produced there and that are are finding where there's great appeal to international audiences.

28:15 The next slide, please. We work very collaboratively in our industry, and a couple of developments in this area in the first half that I would mention are, firstly, that we've initiated a new collaborative research project with an academic partner to look at certain applications of speech technologies in order to enhance our dubbing proposition in the future. And secondly, we're just poised to launch the first of what will be a series of online training courses. This is we're working in an industry now where demand is starting to outstrip supply and where there is a a shortage of talent in in certain areas and in certain languages. So one of the initiatives that we're taking there is to develop training courses. Those training courses are delivered using our platforms, and they will enable us to to bring new talent into the industry and, of course, for that talent to be trained using systems and, therefore, to become available to us to work with on future projects.

29:17 Next slide, please. On our as far as customers are concerned, we are already working with major players in the industry as I've mentioned already. I also mentioned that we gained a significant new customer in the first half, and that customer has chosen to adopt ZOO Studio, our platform, to manage their operations and is now engaging with us on services delivered through that platform. Next slide, please. Working with the best talent in the industry is obviously key to our success, and one of the key developments in the half has been as introducing a a new service for mastering. So mastering is a process that's undertaken once new content has been finished. So once a production company has has delivered new TV series, say, it needs to go through a process then where a technical process where those materials are are conformed to meet with certain standards and technical requirements of the platforms on which they will be delivered. So it's a very kind of specialist area.

30:30 And and what we've done in this first half is to build a team in order to undertake this kind of work to to to and therefore, to broaden the range of services that we offer in our end to end model. We've since having, you know, invested that time and effort to build a team, to put the equipment and systems in place, to expand our infrastructure, to support the additional requirements of this of this area, we've since secured our first customer, and we're now very actively engaged by that customer in delivering projects that that we can see a pipeline for that run, you know, through the rest of this year. The the importance of of dubbing of I'm sorry. The importance of mastering to us is that not only is it a new service that has obviously associated revenues, incremental revenues that we can we can sell, but also that it is typically bundled with a range of other services for localization and other media services that we will deliver to our customers.

31:33 Next slide, please. So I'll just wrap up then with our an outlook statement and say, first of all, that as I mentioned at the beginning, we're experiencing these dual tailwinds, Both new content has now resumed and is growing strongly, and we're doing a lot of work in that area. But at the same time, this migration of catalog content onto the streaming platforms is continuing just as it was as it was through the the period of the pandemic. So we now have a strong order book across all our service lines, and we have very good visibility for revenues through our second half. As I mentioned, we've having implemented our capability for mastering, we've now secured a first customer. We did incur costs for that in our first half, which have which eroded margins during that period, but we're now seeing strong revenue growth from that service line in the second half and beyond.

32:28 So our expectation as we come to the end of this year will be that our revenues actually will become more diverse across the different service lines that we offer. As we mentioned, we're continuing to invest, so there is a fantastic growth opportunity for us. As Phil explained, we raised capital to support our growth earlier in the year, and we're now putting that capital to good use. And what that means is that, you know, our focus is primarily on growing top line. We'll continue to be profitable, but the operational gearing that is inherent within the business, you will start to see that coming through at EBITDA margin level in future periods. So with all that, we're very confident of continuing to deliver profitable growth. Thank you. Fantastic. Stuart Philip, thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions using the Q and A tab situated in the top right hand corner of your screen. Just while the team take a few moments to review those investor questions submitted already, I'd like to remind you that recording of the presentation, along with a copy of the slides and the published Q and A can be accessed via your investor dashboard on company platform.

33:33 I'd also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, you'll be redirected for the opportunity to provide your feedback in order the company can better understand your views and expectations. Stuart Philip, I know I haven't given you very long, but if I may just ask you just to click on that q and a tab. More appropriate to do so, if you could just read out the question and give you a response, that'd be fantastic. Thank you. Absolutely. Okay. Thanks thanks all those who've who've provided some questions for us to to answer. So the first one is you have a great client list. How do you do more with your clients, and is there anything missing from your offering? And who who are you competing with? So well, thanks very much. Yes. We do have a great client list. And for us, you know, that that plan that that Phil took you through there, that that plan medium term plan to reach a $100,000,000 of sales, we believe that we can achieve that even without adding new customers.

34:26 So so right now, one of our, you know, our main focuses is is on growing revenues with our existing clients by delivering the more services and more capacity for those services across the service lines that we that we already deliver. So we don't believe to the to the question, is there anything missing from the offering? We don't believe there is. That that addition of mastering sort of completed that picture, really. You know, with with the inclusion of that in our end to end offering, we can now go from completion of the an original title right the way through to delivery onto the platform. So we've got that fully covered. So we don't believe that there is any there are any significant gaps in our offering.

35:13 And on the question of competition, there are lots of companies around the world that provide localization for media, and media localization is a very specific segment of the broader localization service market. There are lots of companies that do that. There are lots of companies that provide media services. But there are very few companies very few companies that provide localization and media services, that end to end offering across all languages. So most of the localization companies out there will do what they do for a subset of languages, usually just the languages in their country or or their region. So as I mentioned, you know, what's attractive to our customers about ZOO, one of the things is that we're able to operate as this one stop shop. They can come to us, assign a particular title to us, and we can do absolutely everything that is necessary in order to get that that content onto streaming platforms. And we can do that to a very high standard. We can do it very securely.

36:17 We can do it very quickly. And the ease of of working with us on on in that way is is very attractive compared with having to work with many smaller players within our industry. Thanks for that question. So the next one, I think one for one for Phil to cover. How are you contracted by a customer by your customers? Is your revenue recurring or more spot in nature? Phil. Okay. Thank you, Stuart. Yes. So we have framework agreements with all our major customers. Within those framework agreements, there are rate cards. And and, basically, they call off projects when they want us to deliver them.

37:03 We are offering services, so it's it's not recurring as such. But these large US based media companies tend to only have three or four suppliers. So So as you can see in our results, we talk about repeat business, and we get 99% repeat business. So there is an ongoing order book of projects for us to work on. At the moment, we have an order book that's completely full, and we don't have currently the capacity to to take on more work. So we're actually turning work away as it stands. Hence, why why we're investing heavily to build up our capacity for the next stage growth.

37:51 Thanks very much, Paul. Next question. With ZOO Studio securing another deployment, deployment, is there potential for you to become as integrated with this client as you are with client a? That's a great question. Obviously, ZOO Studio is a platform that we seek to deploy and embed within our client organizations. And when they do that, clearly, it reduces the friction of working with us and placing work with us. So it tends to be incredibly beneficial to us to have those deployments secured, and and that is a achieving achieving that status is a is a strategic imperative for us. So we've been very successful with this this first client, with client a, a very large player within the industry.

38:39 The more recent deployment is with a company that is smaller, but nonetheless a a significant player, originate located in The US, but delivering content globally. And we're, you know, we're optimistic that we can now establish a very close working arrangement with them with but through the embedding of ZOO Studio within their operations that will result in some long term ongoing engagement on on production work around localization and media services. That's fantastic, Philip and Stuart. Thank you very much indeed. You have covered off all the questions we've had through from investors. And of course, any further questions do come through, the company will be able to review those and we'll publish responses where appropriate to do so on the Investor Me company platform.

39:30 And finally, Stuart, perhaps if I could just ask you just for a few final closing remarks just before we redirect the investors to give you some feedback, please. Yeah. So I think, you know, I think the company is in a fantastic place. We we're addressing a very large market. We're one of very few end to end vendors, which are increasingly sought by the buyers in our industry. You know, the industry is just going at great guns. Clearly, streaming is the future of of home entertainment. We are the provider of the picks and shovels of this industry. We are working at the very highest level. We're delivering these services to the biggest names in entertainment who are very demanding of the best quality, and we deliver that consistently. So I think for us, the we've got a bright future ahead.

40:16 That's fantastic. Great update. Stuart, Philip, thank you indeed for updating investors today. Could I please ask investors not to close this session as you'd be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team of ZOO DIGITAL GROUP PLC, we'd like to thank you for attending today's presentation. That now concludes today's session. Thank you. Good afternoon.