AFERIAN PLC, a B2B video streaming solutions company, has provided a trading update indicating that it expects to report revenue and adjusted EBITDA at the lower end of the previously announced ranges for the year ended 30 November 2023. The net debt balance as of 31 March 2024 was $12.3 million, reflecting the usual seasonal billing cycle of the group. The 24i video streaming business is making good progress, with key new customer deployments and multiple contract extensions being delivered in the first quarter. However, the Amino business has experienced a further deterioration in trading due to lower than expected orders for video streaming devices.
Management actions taken during 2023 to reduce the Group's annualized cost base by approximately $12 million have been successfully implemented. However, the further deterioration in trading at Amino now requires further restructuring action to be taken, with the Group planning to immediately implement further annualized cost reductions of approximately $3 million in the Amino business. As a result, the Group no longer expects Group adjusted EBITDA for FY2024 to be higher than FY2023.
The Group is in advanced discussions with its lenders over a maturity extension of its banking facility, which has now reduced to $16.5 million from $25.4 million and currently matures in November 2024. The full year audited results for the year ended 30 November 2023 are expected to be reported in May 2024.
Mark Wells, Chairman of Aferian plc, expressed confidence in the Group's future, stating, "I am confident that the timely management actions taken in the last twelve months have positioned the Group on the strongest possible foundation for the future."
Aferian plc is a B2B video streaming solutions company with two operating companies: 24i, which focuses on streaming video experiences, and Amino, which connects Pay TV to streaming services. Their solutions deliver modern TV and video experiences every day to millions of viewers globally, via a growing global customer base of over 500 service providers.