REG - Aferian PLC - Trading Update

AferianAnnouncement

14/06/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220614:nRSN7224Oa&default-theme=true

RNS Number : 7224O  Aferian PLC  14 June 2022

14 June 2022

 

AFERIAN PLC

 

("Aferian", the "Company" or the "Group")

 

Trading Update

 

- Improving quality of earnings and enhanced revenue visibility -

 

- Continued execution against 2025 strategy adding The Filter and launch of
24iQ -

 

- Confident in full year prospects for the Group -

 

 

Aferian plc (LSE AIM: AFRN), the B2B video streaming solution company,
announces a trading update for the six months ended 31 May 2022.

 

The Group has continued to make strong progress in improving the quality of
earnings and enhancing revenue visibility. It expects to report exit run rate
Annual Recurring Revenue ("ARR") of approximately $15.8m (H1 2021: $13.8m),
which represents 16% growth versus the prior year, or 26% on a constant
currency basis. Higher margin software and services revenue is expected to be
approximately $12m (H1 2021: $9.9m), an increase of 21%, or 28% on a constant
currency basis.

 

Device revenues in the first half are expected to be approximately $33m, a
decrease of c.8% year-on-year. These have been impacted by shipping and
production delays as a result of the challenges faced due to COVID-19 related
lockdowns in China, and the associated difficulties in delivering devices to
customers. To mitigate against further potential delays, second half
production has been weighted into Q3. The Board expects the order book to
drive device revenues higher in the second half of the year.

 

Consequently, Group revenue for the period is expected to be approximately
$45m (H1 2021: $45.3m).

 

The Group's balance sheet remains strong and as at 31 May 2022 the Group had
net cash of $7.6m, and undrawn credit facilities of $50m.

 

The Board remains confident in delivering its expectations for the financial
year ending 30 November 2022.

 

Donald McGarva, CEO of Aferian plc, said:

"The first half saw us continue our momentum from 2021 despite continued
challenges brought by the pandemic and global supply chain issues. Our quality
of earnings and revenue visibility has continued to improve and we have
continued to make pleasing progress in executing and innovating against our
2025 strategy.

 

Our recent acquisition of The Filter will allow us to further address the
convergence of streaming and Pay TV and our rapid integration of The Filter's
complementary technologies have already enabled the launch of our advanced
personalisation service, 24iQ, in May 2022."

 

"Overall, we are in a strong position both financially and operationally and
remain confident in our full year prospects."

 

 

 

-ENDS-

 

 

 

 

 

For further information please contact:

 

 Aferian plc                                                         +44 (0)1954 234100
 Mark Wells, Chairman

 Donald McGarva, Chief Executive Officer

 Mark Carlisle, Chief Financial Officer

 Investec plc                                                        +44 (0)20 7597 5970
 David Anderson / Patrick Robb / Nick Prowting / Cameron MacRitchie

 FTI Consulting (Financial communications)                           +44 (0)20 3727 1000
 Matt Dixon / Tom Blundell

 

About Aferian plc

 

Aferian plc (AIM: AFRN) is a B2B video streaming solutions company. Our
end-to-end solutions bring live and on-demand video to every kind of screen.
We create the forward-thinking solutions that our customers need to drive
subscriber engagement, audience satisfaction, and revenue growth.

 

It is our belief that successful media companies and services will be those
that are most consumer-centric, data driven and flexible to change. We focus
on innovating technologies that enable our customers stay ahead of evolving
viewer demand by providing smarter, more cost-effective ways of delivering
end-to-end modern TV and video experiences to consumers. By anticipating
technological and behavioural audience trends, our software solutions empower
our customers to heighten viewer enjoyment, drive growth in audience share and
ultimately their profitability.

 

Aferian plc has two operating companies: 24i, which focusses on streaming
video experiences, and Amino, which connects Pay TV to streaming services. Our
two complementary companies combine their products and services to create
solutions which ensure that people can consume TV and video how and when they
want it. Our solutions deliver modern TV and video experiences every day to
millions of viewers globally, via our growing global customer base of over 500
service providers.

 

Aferian plc is traded on the London Stock Exchange's AIM stock market (AIM:
symbol AFRN). Headquartered in Cambridge, UK, the Company has over 350 staff
located in 11 offices, including major European cities as Amsterdam, Helsinki,
Copenhagen and Brno, as well as in San Francisco and Hong Kong.  For more
information, please visit www.aferian.com (http://www.aferian.com/) .

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTVXLFFLQLEBBL