AFERIAN PLC has released its full year results for the year ended 30 November 2023. The company reported a decline in total revenue by 48% to $47.8 million, primarily driven by a reduction in the volume of devices sold. However, the higher margin software and services revenue grew by 10% to $26.6 million. The exit run rate Annual Recurring Revenue (ARR) decreased by 21% to $14.7 million due to some 24i customer contracts ending at the back-end of 2023.
The statutory operating loss was $63.8 million, including the recognition of a $48.9 million non-cash impairment charge. Adjusted operating loss was $6.1 million, and the Group took actions to reduce its annualized cost base by $12 million during FY2023. The Group's inventory balance at 30 November 2023 was $5.1 million, $4.1 million lower than the prior year. Net debt at 30 November was $6.1 million, compared to net cash of $4.0 million in the previous year.
In terms of strategic and operational highlights, 24i's revenue grew by 12% in 2023, and the company launched new products strategically positioned to capitalize on the expansion of ad-funded streaming. Amino's revenue declined by 63% as customers delayed device orders, but the company is now refocused on delivering higher quality, higher margin Pay TV streaming devices and driving growth in its digital signage and enterprise video business.
Post period end, the company secured an extension to its senior lending facilities and took further actions to identify and deliver efficiencies in its cost base in the first half of FY2024. Additionally, the CEO, Donald McGarva, will step down from his role and leave the company in October 2024.
Despite the decline in ARR for the 24i video streaming business, the company is optimistic following the cost reduction actions taken. Aferian PLC is focused on driving profitability and cash generation over nominal revenue growth.