Video streaming services company Aferian has reported a first half loss amid challenges for its Amino product which connects pay TV to streaming.
The Leeds-based business posted an unaudited adjusted operating loss of $4.2m (£3.3m) in the six months to the end of May, compared with a first half profit of $2.4m (£1.8m) last year. Total revenues slumped 48% to $23.3m (£18.3).
Aferian has made a range of cost saving measures to the tune of $8m (£6.2m) to combat a major downturn in the sales of streaming devices. Chief executive officer Donald McGarva said that while the video streaming device market continued to grow, the number of devices shipped in the period was impacted by customers having a build up of stocks to weather post-Covid supply challenges. This is expected to alleviate going into next year.
Meanwhile the firm’s 24i platform for streaming to mobile phones, tablets and Smart TVs continued to win new customers with revenues boosted $1.8m (£1.4m) to $11.1m (£8.7m).
Mr McGarva said: “This has been a very busy and challenging half for Aferian. 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’ changings needs, our Amino business has been refocussed to concentrate on higher quality, higher margin streaming and device management opportunities and we have seen good initial customer engagement in the Pay TV and digital signage markets. We have continued to progress our strategy to improve the quality of our earnings and enhance revenue visibility in the first half, against what is for everyone, a challenging macroeconomic environment. Our higher margin software and services revenue was up 17% year on year, and we closed the period with exit run rate ARR up 19%.”
In May Aferian secured a loan facility of up to £3.25m from its largest shareholder, Kestrel Partners, of which £1.25m was used. In July it raised $4m (£3.1m) via an equity share capital issue. The firm said the funds provided additional headroom against covenants in its bank facility.
Original artice – https://business-live.co.uk/all-about/yorkshire-humber