Video streaming solutions company Aferian has reported a decline in revenues of 48% and a sharp increase in losses after months of uncertainty and a cost reduction programme.
The company’s anticipated losses came in at $2.4 million for the first half of 2024, when compared to 2023 figures.
Net debt increased to $14.9 million as of May 31, 2024 (compared to $6.1 million in November 2023). However, the company anticipates a decrease of approximately $1 million during the second half of the financial year.
Aferian has implemented strategic cost reduction actions, aligning its cost base with expected revenue reductions, which have reduced annualized operating costs by $14.5 million and annualised capital expenditure by $5.0 million since May 2023.
Subsidiary 24i has made progress in improving cash flow. New customer deployments and multiple contract extensions were achieved in the first half of the year.
Amino, another subsidiary, witnessed an increase in sales order intake for video streaming devices during H1 2024. The gross profit margin improved to 55%. Although device revenue declined by 74% year-on-year, higher-margin Digital Signage and Enterprise device sales exceeded management expectations.
