AFRN Aferian Plc

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

22 April 2024

AFERIAN PLC

("Aferian", the "Company" or the "Group")

Trading Update

Aferian plc (LSE AIM: AFRN), the B2B video streaming solutions company, provides the following trading update.

Trading update

On 5 December 2023, the Group reported that it expected to report revenue of approximately  $47-48 million and a positive adjusted EBITDA of approximately $1.6-2.6 million for the year ended 30 November 2023. It now expects to report revenue and adjusted EBITDA at the lower end of these ranges.

Net debt as at 30 November 2023 was $6.1 million (31 May 2023: $12.9 million) and as at 31 March 2024 net debt was $12.3 million reflecting the usual seasonal billing cycle of the group. At both dates, the net debt balance includes $1.4 million drawn under its shareholder loan facility with Kestrel Partners LLP ("Shareholder Loan").

Outlook

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, there has been a further deterioration in the trading of the Amino business due to lower than expected orders for video streaming devices as customers have delayed purchasing decisions longer than anticipated.

Management actions

As announced previously, management actions taken during 2023 to reduce the Group's annualised cost base by approximately $12 million have been successfully implemented but the further deterioration in trading at Amino now requires further restructuring action to be taken.  The Group will, therefore, immediately implement further annualised cost reductions of c.$3m in the Amino business.

As a result of the deterioration of Amino's current and forecast trading, 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 Group expects to report its full year audited results for the year ended 30 November 2023 in May 2024.

Mark Wells, Chairman of Aferian plc, said: "In the face of unprecedented challenges, this last year has thoroughly tested the resilience of the Group. However, our 24i video streaming business has made good progress this quarter and 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."

The person responsible for the release of this announcement on behalf of the Company for the purposes of MAR is Mark Carlisle, Chief Financial Officer.

-ENDS-

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About Aferian plc

Aferian plc (AIM: AFRN) is a B2B video streaming solutions company. Our end-to-end solutions bring live and on-demand video to every kind of screen. We create the forward-thinking solutions that our customers need to drive subscriber engagement, audience satisfaction, and revenue growth.

It is our belief that successful media companies and services will be those that are most consumer-centric, data driven and flexible to change. We focus on innovating technologies that enable our customers stay ahead of evolving viewer demand by providing smarter, more cost-effective ways of delivering end-to-end modern TV and video experiences to consumers. By anticipating technological and behavioural audience trends, our software solutions empower our customers to heighten viewer enjoyment, drive growth in audience share and ultimately their profitability.

Aferian plc has two operating companies: 24i, which focusses on streaming video experiences, and Amino, which connects Pay TV to streaming services. Our two complementary companies combine their products and services to create solutions which ensure that people can consume TV and video how and when they want it. Our solutions deliver modern TV and video experiences every day to millions of viewers globally, via our growing global customer base of over 500 service providers.

Aferian plc is traded on the London Stock Exchange's AIM stock market (AIM: symbol AFRN). Headquartered in Cambridge, UK, the Company is located in 11 offices, including major European cities as Amsterdam, Helsinki, Copenhagen and Brno, as well as in San Francisco and Hong Kong.  For more information, please visit www.aferian.com.