Aferian remains confident in the face of sharp revenue decline

B2B video streaming service company Aferian has reported a 48% drop in revenues for the first half of 2023 (year on year). The company, which owns the 24i and Amino platforms, saw a significant decline in its devices business (down 71%). This was offset slightly by an improvement in software and services revenues (up 17%).

Donald McGarva

Aferian CEO Donald McGarva said the performance was in line with the trading update announced on 28 June 2023, and expressed confidence in the full year outcome with high percentage of contracted revenue and a well-developed pipeline.

McGarva said: “We have continued to progress our strategy to improve the quality of our earnings and enhance revenue visibility, against what is for everyone a challenging macroeconomic environment. The restructuring of our cost base in 24i and Amino is generating significant annualised cost savings and providing a stronger platform on which to build and grow. Demand in our 24i division has remained strong as we continue our strategic focus on growing software and services revenue in the fast-growing video streaming market. To align ourselves better with our customers’ changing needs, Amino has been refocussed to concentrate on higher quality, higher margin streaming and device management opportunities.”

Commenting further on its two core products, Aferian said 24i “continues to win new customers and grow recurring revenue driven by continued strong demand for streaming video solutions. The division is prioritising profitability and cash generation over nominal growth.” New developments include 24i Broadcaster Studio, “a pre-packaged solution targeting broadcasters who go direct-to-consumer with streaming apps as part of a wider strategy to capitalise on growth in ad-funded streaming”.

As for Amino, Aferian said: “poor trading conditions caused by customer de-stocking at a time of rising interest rates has resulted in a higher than planned inventory balance of $8.6m as at 31 May 2023. The Amino inventory balance is expected to reduce towards November FY21 levels in H1 2024. We have refocused the division on higher quality, higher margin Pay TV and digital signage streaming devices incorporating the Group’s software and Amino’s SaaS device management platform.”

Headquartered in Cambridge, UK, the company has 300 staff around the world. On its webstie, it says “over 100 million people worldwide stream video using an Aferian Group interface via our growing global customer base of over 500 service providers.”

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