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Highlights

  • In FY24, AIM’s revenue grew 12% YoY to AUD 66.2 million, and technology revenue surged by 37% YoY rise, driven by LEXI AI solutions.
  • The gross margin rose to 90.6% in FY24, compared to 88.6% in FY23.
  • 1HFY25 results expected on 27 February 2025.

Ai-Media Technologies Limited (ASX:AIM), an international provider of AI-powered captioning, transcription, and translation services, delivered encouraging financial results in the financial year 2024 (FY24) on the back of the rising adoption of its AI-driven solutions. The company achieved higher technology revenue, improved gross margins, and positive operating cash flow growth during the reported period.

FY24 Financial Performance

For the fiscal year ended 30 June 2024 (FY24), Ai-Media reported total revenue of AUD 66.2 million, reflecting a 7.12% increase compared to AUD 61.8 million in FY23. Operating cash flow rose 2.86% YoY to AUD 3.6 million in FY24, while gross profit surged 15.82% to AUD 20.5 million. The company improved its position in the AI market through transitioning to LEXI’s AI solutions.

Several factors contributed to Ai-Media’s financial performance:

  • AI-Powered Solutions Growth: Revenue from technology-driven solutions surged 37% YoY, reaching AUD 32.9 million.
  • LEXI Product Success: The company’s AI-driven captioning tool, LEXI, saw a 40% YoY revenue increase.
  • Higher Gross Margins: Ai-Media’s gross margin improved to 64% in FY24, up from 60% in FY23, due to increased sales of high-margin AI solutions.
  • EBITDA Expansion: The company reported a 24% YoY increase in EBITDA.

Business Update

In a recent development, Wilson Asset Management Group acquired 5.3% voting rights in Ai-Media, becoming a substantial shareholder.

Key Financial Indicators

Positives

✔ Higher Liquidity: The current ratio increased to 1.90x in FY24 (vs. 1.51x in FY23).
✔ Higher Profitability: The gross margin rose to 90.6% in FY24 (vs. 88.6% in FY23).

Negatives

❌ Net Margin Challenges: Ai-Media’s net margin remained negative at -2.0%, significantly lower than the industry median of 11.9%.
❌ Lower Asset Turnover Ratio: The company’s asset turnover ratio stood at 0.68x in FY24, below the industry benchmark of 0.75x.

Outlook for FY25

Ai-Media’s performance in FY24 lays the foundation for continued expansion in FY25, with a focus on:

  • Expanding its AI-powered captioning services to European and Asian markets.
  • Enhancing LEXI-based solutions for government and enterprise clients.
  • Developing new AI-driven services, including LEXI Audio Description, Voice, and Dubbing, to expand beyond broadcasting.

With these strategies, Ai-Media aims to diversify revenue streams and strengthen partnerships with systems integrators. The company is expected to release its 1HFY25 financial results on 27 February 2025.

Share performance of AIM

AIM shares closed 1.96% higher at AUD 0.78 per share on 19 February 2024. In the past 12 months, AIM has recorded an impressive 178.57% rise in its share price. In a week, the share price has surged by almost 13.04%.

52-week high of AIM is AUD 0.95, recorded on 30 December 204 and 52-week low is AUD 0.27, recorded on 19 February 2024.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 19 February 2025. The reference data in this report has been partly sourced from EODHD/Others.