Media services firm Zoo Digital declined sharply on Wednesday after warning its revenue for the year ending March 2014 will be below its previous expectations at around 9.5m euros and a loss before tax will be 'significantly' greater than the prior year.

It blamed the decline on the fact its revenue profile tends towards delivery as an ongoing service rather than as licence sales and its significantly increased investment into its ZOOsubs work. The investment has been made in order to meet the market opportunity and demand, including the development of a subtitling team with significant expertise in the sector, it explained.

Chief Executive Officer Stuart Green said: "Whilst it is disappointing that ZOOsubs volumes initially took longer than expected to build, we are pleased that this side of our business is now gaining momentum.

"We have focused our efforts, and our at times constrained resources, on developing specifically this proposition, which provides significant visibility of future revenues and has already diversified our customer base."

The share price fell 18.5% to 7.74p by 09:40 Wednesday.

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