Aferian plc (LON:AFRN), a software-led global media technology company that delivers modern TV experiences, has announced unaudited results for the six months ended 31 May 2021.
Strategic and operational highlights
· Significant progress against 2025 strategic goals:
o Double digit growth in both revenue and annual recurring revenue driving improved revenue quality and visibility.
o Double digit growth also achieved in adjusted EBITDA and adjusted operating profit.
o Acquisition of Nordija, a Danish streaming and Pay TV platform specialist, for €5.3m accelerating the Group’s TV as a Service offering.
o A strong balance sheet to support M&A.
· Continued focus and investment to drive growth in recurring software revenues and conversion of the streaming and Pay TV convergence opportunity.
· Strategically important deployments with PCCW (Android TV), Canadian Hockey League (Smart Apps Next-Gen platform), Go Malta and Cablenet (Pay TV+).
· Rebrand to Aferian plc to better reflect the true scale, breadth and potential of the Group’s operations and market positioning at minimal cost.
· We announce today that the 8% minority shareholders of 24i Unit Media B.V intend to exercise their right to sell their shares in 24i Unit Media B.V to the Company for either cash or shares, at the Company’s election.
|$m unless otherwise stated||H1 2021||H1 2020||Change|
|Exit Annual Recurring Revenue (“ARR”) (1)||13.8||10.1||37%|
|Adjusted gross profit (2)||20.6||19.0||8%|
|Adjusted operating profit (4)||5.1||4.2||21%|
|Adjusted profit before tax (4)||4.7||3.9||21%|
|Adjusted basic earnings per share (US cents)(4)||5.05c||4.88c||3%|
|Statutory gross profit||20.6||19.2||7%|
|Statutory operating profit||1.9||0.7||171%|
|Statutory profit before tax||1.5||0.5||200%|
|Statutory basic earnings per share (US cents)||1.16c||0.92c||26%|
|Interim dividend per share (GBP pence)||1.0||–|
Donald McGarva, CEO of Aferian plc, said:
“Last February we launched our 2025 strategy to drive software-led growth and capitalise on the structural shifts in the TV market. Since then, Aferian has moved rapidly to convert the opportunity in front of us. The focus and dynamism within our business is delivering results, with a 19% rise in revenues and a 37% increase in recurring revenue, providing greater forward visibility than ever before.”
“Our 2025 strategy targets both organic growth and strategic M&A. We made the first of our software focussed acquisitions in May, adding Nordija’s streaming and Pay TV platform capabilities to our market leading 24i business. Having pivoted towards software and streaming, in June we became Aferian plc to reflect our updated market positioning at a Group level, with 24i and Amino continuing as our go-to-market brands.”
“We enter the second half of the year with a clear strategy, building recurring revenues and a strong balance sheet to support software focussed M&A. The Board remains confident in the Group’s ability to meet current full year expectations and in our future prospects as we execute our 2025 strategy.”
Current trading and outlook
· The Group has traded well in the first half, driving double digit revenue and ARR1 growth, which in combination with earlier customer hardware orders due to longer supply lead times, provides excellent visibility.
· The integration of Nordija is underway and on track and is expected to be earnings enhancing in the first full financial year of ownership.
· Aferian enters H2 with a strong balance sheet and in a solid position to execute on its pipeline of potential M&A opportunities.
· The Board remains confident in the Group’s ability to meet current full year expectations and in the Group’s future prospects as it executes its 2025 strategy.