Aferian continues to make encouraging progress

Aferian plc (LON:AFRN), the B2B video streaming solutions company, has announced a trading update for the six months ended 31 May 2023. Trading for the period was in line with the trading and outlook communicated on the 31 May 2023.

Revenue performance

The Group has continued to make encouraging progress in improving the quality of earnings and enhancing revenue visibility. Aferian expects to report an improved exit run rate Annual Recurring Revenue (“ARR”) of c.$19.0m (31 May 2022: $15.8m), representing 20% growth on the prior year, or 21% on a constant currency basis. Higher margin software and services revenue for the period is expected to be c.$13.7m (H1 2022: $12.0m), an increase of 14% versus the prior year, or 16% on a constant currency basis. Device revenues in the first half are expected to be c.$9.4m, representing a decrease of 71% year-on-year.

Consequently, Group revenue for the period is expected to be c.$23.1m (H1 2022: $44.5m).

Cost reduction actions

As previously communicated, management actions taken in February and June 2023 have reduced the Group’s annualised cost base, including capital expenditure, by c.$5m and a further c.$3m respectively. This has saved a total of $3.4m operating costs and $1.5m capital expenditure in the current financial year.

Balance sheet

Following proactive investment made in inventory within the Amino business to de-risk supply chain delays, the Group’s inventory balance at 31 May 2023 was $8.6m (31 May 2022: $4.0m). Net debt at 31 May 2023 was $13.0m (31 May 2022: $7.8m net cash). Net debt is expected to reduce over the remainder of the current financial year as inventory levels reduce. The Group remains in compliance with its loan facilities covenants.

Outlook

For the full year ended 30 November 2023, 90% of management’s forecast Group revenues are contracted. The remaining 10% is covered by a well-developed sales pipeline. Combined with the cost reduction actions taken above, this provides the Board with confidence in the expected outturn for the full year in which the Group is expected to generate a positive material EBITDA.

The Group’s strategy continues to be growing software and services revenue in the fast-growing video streaming market through the 24i division’s streaming video platforms. Demand here remains strong and the 24i management team are focused on accelerating profitability in the second half of the financial year and beyond.

The Amino division, which connects Pay TV to streaming services, will now focus on higher quality, higher margin streaming devices which can also be bundled with its SaaS device management platform. This SaaS device management platform is also integrated with 3rd party devices and sold on a standalone basis. With encouraging initial traction, the Group will also look to continue to grow its digital signage business.

At the Group level, the Board anticipates full year software and services revenue growth of c.10% to 15% in this financial year. As we move in to FY2024, the 24i business and management team will focus primarily on the plan to deliver enhanced profitability and cash generation.

Devices revenue in H2 2023 is expected to be higher than H1 2023 and this recovery is expected to continue in FY 2024 as inventory levels continue to normalise within the supply chain.

Update on interim results announcement date

Aferian expects to report its interim results for the six months ended 31 May 2023 in August 2023.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Aferian

More articles like this

Aferian

24i & Phenix partner for Prep Super League streaming app

24i and Phenix are partnering to aid in the creation of a video streaming app for the Prep Super League ahead of its first season. The white-label app will be developed via 24i’s Mod Studio, which will be pre-integrated with Phenix’s

Aferian

24i & Amino deploys TVaaS for Switzerland’s Thurcom

Video streaming expert 24i and media solutions provider Amino has been selected by Technische Betriebe Wil (TBW) to power the video services of its telco provider Thurcom based in Switzerland. The joint TV-as-a-service (TVaaS) solution will enable Thurcom to

Aferian

Tales from the FAST Frontline

FAST channels have been the biggest noise in the streaming industry in the past couple of years. Analysts estimate FAST revenues will reach $12bn worldwide by 2027. There are already more than 1,500 FAST channels available in the

Aferian

Aferian plc 24i and Amino to power video services for Thurcom

Aferian plc (LON:AFRN), the B2B video streaming solutions company, has today announced that both 24i and Amino have been selected by Technische Betriebe Wil (TBW) to power the video services of its service subsidiary Thurcom, the largest regional telecom provider in Switzerland.

Aferian

AV Awards Finalist 2023 – Amino H200 with Amino Orchestrate

Aferian plc (LON:AFRN) is a trusted partner and global provider of innovative, scalable media and entertainment technology solutions. As an IPTV pioneer, working with over 250 operator customers in 100-plus countries, Aferian continuously innovates to help customers deliver

Aferian

Virgin Media unveils new FAST channels

Virgin Media has launched a new line-up of FAST channels in partnership with Amagi and 24i. An initial selection of 14 have been rolled-out to Virgin Media’s V6, TV 360, and Stream STBs. Using the Appstage application framework

Aferian

Aferian Directors’ Dealings

Aferian plc (LON:AFRN) has announced that it has received notification on the 01 September 2023 from Kestrel Partners LLP that on the 01 September 2023 it purchased, on behalf of its discretionary client accounts, an aggregate of 100,000 ordinary

Aferian

Aferian trading remains in line with expectations

Aferian plc (LON:AFRN), the B2B video streaming solutions company, has announced its unaudited results for the six months ended 31 May 2023, which demonstrate a performance in line with the trading update announced on 28 June 2023. –     Improving quality

Aferian

Aferian appoints Allen Broome as a Non-Executive Director

Aferian plc (LON:AFRN), the B2B video streaming solutions company, has announced the appointment of Allen Broome to the Board as a Non-Executive Director, with immediate effect. Allen is a technical leader with a proven track record of delivering

Aferian

Aferian’s 24i & Amagi power new Virgin Media FAST channels

Aferian plc (LON:AFRN), the B2B video streaming solutions company, in collaboration with its technology partner Amagi, has announced that UK telecoms, media, and internet company, Virgin Media, has used its 24i integrated solution to launch and monetise a

Aferian

Amino World of Digital Signage

Aferian plc (LON:AFRN) is a trusted partner and global provider of innovative, scalable media and entertainment technology solutions. As an IPTV pioneer, working with over 250 operator customers in 100-plus countries, Aferian continuously innovates to help customers deliver

No more posts to show