Aferian plc (LON:AFRN), the B2B video streaming solution company, has announced 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.”