Aferian plc (LON:AFRN), the B2B video streaming solutions company, has announced its results for the year ended 30 November 2021.
Donald McGarva, Chief Executive Officer of Aferian plc, said:
“I am proud of the strong performance we’ve achieved in our first full year of executing and innovating against our 2025 strategy. We have delivered double digit growth across the majority of our key performance metrics and significantly improved our quality of earnings and revenue visibility with an exit run rate ARR up 43% on the previous year. This strong performance was delivered thanks to the incredible teamwork, resilience and hard work of our people and despite ongoing uncertainty brought on by the pandemic and global supply chain issues.
“We enter 2022 in a strong position both financially and operationally. Aferian sits at the centre of the converging worlds of streaming services and traditional Pay TV. This convergence excites our customers, engages viewers and energises our product teams as we continue to innovate new ways to make it easy for people to connect to TV and video when and how they want.”
Financial Key Figures
| US$m unless otherwise stated | 2021 | 2020 | Change % |
| Revenue | 92.9 | 82.7 | 12% |
| Exit run rate Annual Recurring Revenue (ARR) (1) | 15.2 | 10.6 | 43% |
| Statutory gross profit | 44.9 | 40.7 | 10% |
| Statutory operating profit | 5.7 | 5.1 | 12% |
| Statutory operating cash flow before tax | 14.1 | 16.8 | (16%) |
| Statutory basic earnings per share (US cents) | 7.52 | 4.06 | 85% |
| Adjusted gross profit (2) | 44.7 | 39.7 | 13% |
| Adjusted operating profit (3) | 11.8 | 10.5 | 12% |
| Adjusted operating cash flow before tax (4) | 16.7 | 18.2 | (8%) |
| Adjusted basic earnings per share (US cents) (5) | 11.45 | 10.07 | 14% |
| Net cash | 14.2 | 9.5 | 49% |
| Dividend per share (pence) | 3.09 | 1.87 | 65% |
Notes
| (1) | Exit run rate ARR is annual run-rate recurring revenue as at 30 November 2021. |
| (2) | Adjusted gross profit is a non-GAAP measure and excludes exceptional items. Further details of these adjustments are set out in note 4. |
| (3) | Adjusted operating profit is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges. Further details of these adjustments are set out in note 4. |
| (4) | Adjusted operating cash flow before tax is a non-GAAP measure and excludes exceptional items. Further details of these adjustments are set out in note 4. |
| (5) | Adjusted basic earnings per share is a non-GAAP measure and excludes amortisation of acquired intangibles, exceptional items and share-based payment charges. Further details of these adjustments are set out in note 4. |
Financial Highlights
· Further improved quality of earnings and enhanced revenue visibility
· higher-margin software and services revenue of approximately $22.4m, up 15%, including recurring revenue of $12.9m, up 21%
· exit run rate ARR of $15.2m (2020: $10.6m), up 43%
· Strong balance sheet maintained with strengthened cash position, and new banking facility of up to $100m to support our targeted M&A strategy
· A final dividend of 2.09 pence (2.87 US cents) per share (2020: 1.87 pence / 2.39 US cents) in line with our new dividend policy to deliver returns to shareholders through growth and income
Strategic and Operational Highlights
· Strong progress against our 2025 strategic goals in the first year of execution
· Continued focus and investment to drive growth in recurring software revenues and conversion of the streaming and Pay TV convergence opportunity
· 24i: continued focus on building recurring revenues and migrating subscribers from legacy systems to 24i’s more flexible and extensible platform
· Amino: grew revenues by 19% to $75.1m, maintaining strong margins and cash generation
· Strategically important customer deployments achieved during the period across 24i and Amino:
· 24i: deployed 24i’s streaming platform for new customers including the Canadian Hockey League and Cinessance, a subscription video on demand service, which launched in November 2021 as the ‘Netflix of French Film’
· Amino: multiple new deployments of Amino’s Android TV platform including at Go Malta and CableNet in Europe, Optage in APAC and Conway, Home Telecom and Hay Communications in North America
· Successful integration of Danish streaming and Pay TV platform specialist, Nordija (now part of 24i), immediately adding $2.1m ARR upon acquisition.
· Continued product innovation and success, 24i’s video platform named best OTT Video Platform in the Streaming Media European Readers’ Choice Awards, and Amino’s Hybrid Android TV streaming device securing CSI Magazine’s Award for Best Customer Premise Technology 2021
Current trading and outlook
· We enter 2022 in a solid position and continue to strengthen our pipeline of potential M&A opportunities as we seek to continue to deliver against our 2025 strategy.
· The Board remains confident in the Aferian’s ability to meet current full year expectations and in the Group’s future prospects.
