Aferian plc (LON:AFRN), the B2B video streaming solutions company, has provided a trading update for the year ended 30 November 2022.
The Group confirms that Group trading has finished the year in line with the Board’s expectations and anticipates announcing full year results consistent with the guidance ranges communicated on 24 October 2022.
Donald McGarva, Chief Executive Officer of Aferian plc, said: “Aferian will deliver full year numbers in line with our recently stated guidance. We have continued to make progress this year to evolve Aferian into a leading video streaming solutions company to both serve and shape our growing market. Our results demonstrate that we continue to execute on improving our software and annualised recurring revenue growth and we look forward to providing more detail at the time of our full year results.”
For the year ended 30 November 2022 the Group expects to report adjusted operating profit1 within the $7.8m-$8.8m guidance range.
Driven primarily by its 24i business (which focusses on streaming video experiences), the Group has continued to make strong progress in improving its quality of earnings and enhancing revenue visibility. Exit run rate Annual Recurring Revenue (“ARR”) is expected to be approximately $17.5m (FY21: $15.2m), up 15% versus the prior year, or 23% on a constant currency basis. Higher margin software and services revenue is expected to be approximately $24m (FY21: $22.4m), an increase of 7%, or 15% on a constant currency basis.
Device revenues in our Amino business (which connects Pay TV to streaming services) are expected to be approximately $67m (FY21: 70.5m), a decrease of 5% year-on year. This is due to the desire of some customers to reduce their working capital, particularly in the USA. As previously announced, this trend is expected to continue into the first half of FY23 as some customer inventory levels remain high having been bolstered to mitigate for earlier supply chain disruptions.
Consequently, total revenue is expected to be approximately $91m, representing a c2% decrease on the prior year.
Net cash at 30 November 2022 is expected to be slightly ahead of expectations at $4m, following better than expected cash collection from customers.
Notes:
All numbers reported are unaudited.
1Adjusted operating profit is a non-GAAP measure and excludes amortization of acquired intangible assets, exceptional items and share-based payment charges.
