The owner of 24i and Amino has secured additional funding after a collapse in the company’s revenues.
Aferian chairman Mark Wells said unfavourable macro-economic conditions, coupled with a change in competitive environment, had led to a substantial decrease in sales of pay-TV streaming devices. “The Group has implemented substantial measures to reduce its cost base. With the backing of its shareholders and debt facility lenders, the Group continues to have access to adequate financial resources to execute its strategy. The key ambition remains to build a more predictable software-driven growth business.”
Wells added that despite the challenging conditions the company remained optimistic about the long-term term outlook for the video streaming sector.
Sales of Amino’s pay-TV streaming devices in the year were 68% down year-on-year – while the device market continues to grow, Amino’s problem has been a ‘de-stocking’ by operators caused by reduced lead times.
Continued demand for 24i product, which serves the video streaming market with software-based products, helped revenue grow by 12% as 24i launched new products strategically positioned to capitalise on the expansion of ad-funded streaming.
Group revenue for the year was $47.8m, a decrease of 48% versus prior year.
A new $3 million cost saving plan was put forward in April when it was also announced that CEO Donald McGarva will step down in October after 14 years with the company.
