Azerion publishes interim Q1 2024 results
Strong growth in Platform advertising revenue driving
improved profitability
Highlights of Q1 2024
- 31%
growth in Platform advertising revenue to € 89.2
million in Q1 2024, compared to € 68.0 million in Q1 2023, mainly
driven by increased Direct sales and Automated auction sales and
the benefits of integrating and consolidating past acquisitions,
including Hawk as Azerion’s single media buying
platform.
- 58% increase
in Hawk revenue as compared to Q1 2023, largely due to
scale benefits and efficiencies from operating within Azerion’s
Platform and confirming the improved value proposition and
synergies generated by the acquisition.
- Total
Revenue of € 119.7 million in Q1 2024,
up 6.2% from € 112.7 million in Q1 2023, mainly
driven by higher advertising spend across the Platform Segment
particularly in Direct sales, the integration of past acquisitions
and notwithstanding the loss of contribution from the divested
social card games portfolio.
- Adjusted
EBITDA in Q1 2024 of
€ 9.8 million, an
increase of 12.6% as compared to € 8.7 million in
Q1 2023, largely driven by increased Platform revenue from
advertising, particularly in Direct sales, cost savings and
efficiencies from the integration of previous acquisitions and a
gain on acquisition related earn-outs and notwithstanding the loss
of contribution from the social card games portfolio divested in Q3
2023.
- Total
operating expenses down 23% in Q1 2024 as compared to Q1
2023 due to delivery of ongoing optimisation and efficiency
programmes.
- Significant
progress in advancing our product and technology
roadmap, including continued development of Performance by
Azerion, Azerion’s audience and data management platform, the
integration of Azerion’s single media buying interface and enhanced
monetisation and content development solutions.
- Signed 42
new publishers and connected 5 additional
SSPs to expand our digital audiences across Europe and the
Americas.
- Expanded our
market position in the Nordic markets in April 2024 by
entering into a strategic partnership with Eniro Group AB,
supported by the acquisition of a minority stake, to provide
digital advertising services to Eniro’s 50,000 SME client base and
various services related to monetisation, product and
technology.
Selected KPIs
Financial Results - Azerion Group N.V.
in millions of €
|
Q1 2024 |
Q1 2023 |
Growth |
Platform Segment |
|
|
|
Advertising Platform |
89.2 |
68.0 |
31.2% |
AAA Game Distribution (e-commerce) |
19.2 |
21.3 |
(9.9)% |
Total Revenue |
108.4 |
89.3 |
21.4% |
Adj. EBITDA |
9.0 |
3.6 |
150.0% |
|
|
|
|
Premium Games1) |
|
|
|
Revenue |
11.3 |
23.5 |
(51.9)% |
Adjusted EBITDA |
0.8 |
5.1 |
(84.3)% |
|
|
|
|
Total Group |
|
|
|
Revenue |
119.7 |
112.7 |
6.2% |
Adj. EBITDA |
9.8 |
8.7 |
12.6% |
1)2023 figures for Premium Games contain results of the social
cards game portfolio that was divested in Q3 2023. For detailed
split of Premium Games results please refer to respective section
below.
Adj. EBITDA Margin % |
|
|
|
Platform |
8.3% |
4.0% |
|
Premium Games |
7.1% |
21.7% |
|
Total Group |
8.2% |
7.7% |
|
Message from the CEO
"We aim to become a cornerstone partner for brands, agencies and
publishers across Europe’s digital advertising landscape and are
pleased with our progress in Q1. Our advertising platform has seen
strong revenue growth and improved profitability. The ongoing
integration of our single media buying platform continues to
improve our delivery for our advertising clients, while positioning
us well for growth in premium advertising formats such as Digital
Out-of-Home, Audio, and Connected TV. By streamlining operations,
we have unlocked significant efficiencies that help drive our
growth and enhance our service offerings and we continue to see
benefits from our ongoing investment in advanced machine learning
and AI. As our platform continues to scale, we also see a strong
and attractive pipeline of opportunities for strategic
partnerships."
- Umut Akpinar
Financial overview
Revenue
Revenue for the quarter amounted to € 119.7 million compared to
€ 112.7 million in Q1 2023, an increase of approximately 6.2%. The
increase in Revenue year on year came mainly from growth in the
Platform segment revenue of € 19.1 million, driven by increased
advertising revenue from Direct and Automated auction sales and the
integration of previous acquisitions, offset by a reduction in
Revenue in Premium Games due to the sale of the social card games
portfolio completed during Q3 2023 with that portfolio contributing
revenue of € 11.3 million in Q1 2023 and a reduction in Revenue
from AAA Game Distribution (formerly referred to as e-commerce) of
€ 2.1 million largely due to fewer high profile AAA game releases
in Q1 2024 compared to Q1 2023.
Earnings
The operating loss for the quarter amounted to € (5.7) million,
an improvement of € 2.0 million as compared to an operating loss of
€ (7.7) million in Q1 2023, with the benefits of higher revenue,
lower personnel costs and lower other expenses, largely offset by
the higher costs of services and materials and related lower
comparative margins from the change in business mix arising from
sale of the social card games portfolio completed in August 2023
and the acquisition and integration of Hawk.
Adjusted EBITDA in Q1 2024 of € 9.8 million, an increase of
12.6% as compared to € 8.7 million in Q1 2023, largely driven by
increased Platform revenue from advertising, particularly in Direct
sales, cost savings and efficiencies from the integration of
previous acquisitions and a gain on acquisition related earn-outs
of € 1.6 million and notwithstanding the loss of contribution from
the social card games portfolio divested in Q3 2023 with that
portfolio contributing Adjusted EBITDA of € 3.5 million in Q1
2023.
Cash flow
Cash flow from operating activities in Q1 2024 was an inflow of
approximately € 1.7 million, mainly due to movements in net working
capital, reflecting an increase in trade and other payables of €
4.2 million and a decrease in trade and other receivables of € 2.8
million, offset by € (4.5) million paid on bond related interest
and € (1.5) paid in income tax. Cash flow from investing activities
for the period was an outflow of € (9.2) million, mainly due to
cash outflow on past acquisitions of subsidiaries in the amount of
€ (3.6) million and payments for intangibles of € (4.9) million.
Cash flow from financing activities in the period amounted to an
outflow of € (3.2) million, mainly due to repayment of borrowings
of € (1.5) million and repayment of lease liabilities of € (1.5)
million.
Capex
Azerion capitalises development costs related to the internal
development of assets, a core activity to support innovation in its
platform. These costs primarily relate to developers’ time devoted
to the development of the platform, games and other new features.
In Q1 2024 Azerion capitalised € 3.3 million, equivalent to 13.3%
(Q1 2023: € 4.3 million, equivalent to 14.9%) of gross personnel
costs excluding restructuring provision expense.
Financial position and borrowing
Net interest bearing debt*) amounted to € 158.1 million as at 31
March 2024, mainly comprising the outstanding bond loan with a
nominal value of € 165 million (part of a total € 300 million
framework) and lease liabilities with a balance of € 18.5 million
less the cash and cash equivalents position of € 29.7 million.
*)As defined in the Terms & Conditions of the Senior Secured
Callable Floating Rate Bonds ISIN: NO0013017657. Please also refer
to the Definitions section and the notes of this Interim Report for
more information.
Platform Segment
Our Platform segment includes our digital advertising
activities, AAA Game Distribution (formerly referred to as
e-commerce), Casual Game Distribution (being the operation and
distribution of casual games) and Azerion Sports. The Platform
segment generates Revenue mainly by displaying digital
advertisements in both game and general content, as well as selling
and distributing AAA games. Advertisers are serviced through two
models: i) Direct sales, which involve a direct engagement between
Azerion’s commercial teams and advertisers or their agencies in the
placement of digital advertisements, and ii) Automated auction
sales in which advertising inventory is purchased through the open
market. Platform is also integrated with parts of our Premium Games
segment, leveraging inter-segment synergies.
Selected business highlights in Q1 2024
include:
- Expanded our digital
audio advertising platform offering through a strategic partnership
with Acast, in which Azerion will support local advertisers and
agencies in Spain, Belgium, The Netherlands, Italy and Greece to
execute their audio advertising campaigns on Acast’s podcast
network.
- Strengthened our
position to deliver premium advertising solutions in the dynamic
Italian media landscape through a partnership with Money.it
- Together with the
Royal Dutch Football Association ("KNVB"), Azerion Sports launched
a new app for the Azerion Women’s League making the league more
accessible and interactive for fans and expanding Azerion’s
ecosystem of engaged audiences.
- Azerion Sports
signed an additional two clubs to its white-label fan engagement
app, now totalling 23 clubs and 228,000 app downloads by the end of
Q1 2024, helping clubs engage and interact with their fan base in a
consolidated platform.
- Azerion strengthened
its casual games distribution portfolio during Q1 2024, adding 302
new games and 54 new publisher partners.
Platform – Selected Financial KPIs
Financial results - Platform
in millions of €
|
Q1 |
Q1 |
|
2024 |
2023 |
Advertising Platform |
89.2 |
68.0 |
AAA Game Distribution (e-commerce) |
19.2 |
21.3 |
Total Revenue |
108.4 |
89.3 |
Operating profit / (loss) |
(3.7) |
(8.3) |
Adjusted EBITDA |
9.0 |
3.6 |
|
|
|
Revenue growth % - Advertising Platform |
31.2% |
|
Revenue growth % - AAA Game Distribution |
(9.9)% |
|
Total Revenue growth % |
21.4% |
|
Adjusted EBITDA growth % |
150.0% |
|
Adjusted EBITDA margin % |
8.3% |
4.0% |
Total Platform Revenue of € 108.4 million in Q1 2024, compared
to € 89.3 million in Q1 2023, an increase of 21.4% due to increased
Revenue from the Advertising platform, offset by a decrease in
Revenue from AAA game key sales in AAA Game Distribution (formerly
referred to as e-commerce).
Advertising Platform Revenue of € 89.2 million in Q1 2024, an
increase of approximately 31% compared to € 68.0 million in Q1
2023, mainly driven by increased Direct and Automated auction sales
and the benefits of integrating and consolidating past
acquisitions, including Hawk as Azerion’s single media buying
platform. Revenue in Hawk increased by 58% as compared to Q1 2023,
contributing € 16.4 million of Revenue in Q1 2024 as compared to
pre-acquisition Revenue of € 10.4 million for the same period last
year, largely due to the scale benefits and efficiencies from
operating within Azerion’s Platform and confirming the improved
value proposition and synergies generated by the acquisition.
In Q1 2024, Azerion’s Direct sales contributed approximately 70%
of Platform advertising revenue, as compared to approximately 65%
in Q1 2023, with the balance provided by Automated auction sales.
In Q1 2024, AAA Game Distribution generated Revenue of € 19.2
million as compared to € 21.3 million in Q1 2023, a decrease of
approximately (9.9)% largely due to fewer high-profile AAA game
releases in Q1 2024 compared to Q1 2023. In Q1 2024, AAA Game
Distribution Revenue represented approximately 17.7% of total
Platform Revenue, as compared to approximately 23.9% in Q1
2023.
Total Platform Adjusted EBITDA of € 9.0 million in Q1 2024,
compared to € 3.6 million in Q1 2023, an increase of 150.0% largely
due to growth in higher-margin Direct sales, improved spend on
higher-impact ads in channels such as audio, CTV and DOOH,
increased monetisation of exclusive partnerships and owned and
operated content, together with ongoing consolidation and
integration of previously acquired businesses and cost optimisation
and a gain on acquisition related earn-outs of € 1.6 million. The
Adjusted EBITDA performance also reflects the successful
integration of the recent Hawk acquisition.
Advertising - Selected Operational KPIs
Advertising - Operational KPIs1)
|
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Avg. Digital Ads Sold per Month (bn) |
12.2 |
13.0 |
12.2 |
12.9 |
12.0 |
1)The reporting of average Gross Revenue per Million Processed
Ad Requests from advertising auction platform (€) has been
temporarily discontinued due to the ongoing integration of
operational reporting data from the acquisition of Hawk completed
in Q4 2023 and a review of our selected operational KPIs for this
segment more generally.
The Average Digital Ads Sold per Month
decreased to 12.0 billion in Q1 2024 from 12.2 billion in Q1 2023,
reflecting an ongoing focus on premium digital advertising formats
such as DOOH, digital audio, drive to store, resulting in higher
CPMs and lower digital ads sold.
The selected operational KPIs include the Hawk acquisition as of
Q1 2024.
Premium Games Segment
From Q4 2023, the Premium Games segment consists of social
casino games and metaverse games. Azerion completed the sale of its
social card games portfolio to Playtika Holding Corp. on 28 August
2023 and its contribution to the Premium Games segment ceased at
that date. The segment generates revenue mainly by offering users
the ability to make in-game purchases for extra features and
virtual goods to enhance their gameplay experience. This segment
aims to stimulate social interaction among players and build
communities, offering an extended value proposition to advertisers
and generating cross-selling opportunities with the Platform
segment.
Selected Q1 2024 business highlights
- Introduced two new
sale mechanics "Fortunas wheels" and "Offer chain" into the social
casino portfolio improving user monetisation.
- Habbo continued its
adoption of Web3 technology with the launch of Collector Cabinets,
a feature that can convert in-game items into NFTs
Premium Games – Selected Financial KPIs
Financial results - Premium Games
in millions of €
|
Q1 |
Q1 |
|
2024 |
2023 |
Revenue (excluding social card games) |
11.3 |
12.2 |
Social card games portfolio |
- |
11.3 |
Total Revenue |
11.3 |
23.5 |
Operating profit / (loss) (excluding social card games) |
(2.0) |
(2.5) |
Social card games portfolio |
- |
3.1 |
Total Operating profit / (loss) |
(2.0) |
0.6 |
Adjusted EBITDA (excluding social card games) |
0.8 |
1.6 |
Social card games portfolio |
- |
3.5 |
Total Adjusted EBITDA |
0.8 |
5.1 |
|
|
|
Revenue growth % (excluding social card games) |
(7.4)% |
|
Adjusted EBITDA growth % (excluding social card games) |
(50.0)% |
|
Adjusted EBITDA margin % (excluding social card games) |
7.1% |
13.1% |
Revenue of € 11.3 million in Q1 2024, as compared to € 12.2
million in Q1 2023 (excluding social card games), a decrease of
(7.4)%, mainly due to the sale of Woozworld to its management at
the start of January 2024 (€ 0.5 million Revenue in Q1 2023) and
management actions on the remaining portfolio.
Adjusted EBITDA of € 0.8 million in Q1 2024, compared to € 1.6
million in Q1 2023 (excluding social card games), a decrease of
(50.0)%, mainly driven by the social casino portfolio and a shift
in new-user generation to mobile in Azerion’s own environment, as
well as through its white label partners, which has higher growth
potential over time, but also higher transaction costs as compared
to web.
Premium Games – Selected Operational
KPIs
Premium Games - Operational KPIs
|
Q1 2023 |
Q2 2023 |
Q3 2023 |
Q4 2023 |
Q1 2024 |
Avg. Time in Game per Day (min) |
76 |
81 |
80 |
95 |
87 |
Avg. DAUs (thousands) |
310 |
274 |
252 |
255 |
251 |
ARPDAU (EUR) |
0.39 |
0.42 |
0.44 |
0.47 |
0.42 |
- The Average
Time in Game per Day (min) increased by 14.5% in Q1 2024
to 87 minutes per day as compared to Q1 2023 due to improved
in-game sales mechanics, features and events.
- The Average
Daily Active Users (DAUs) decreased by (19.0)% in Q1 2024
compared to Q1 2023, mainly due to lower user acquisition spend and
increased focus on greater engagement with higher paying
users.
- The Average
Revenue per Daily Active User (ARPDAU) increased by 7.7%
in Q1 2024 compared to Q1 2023, due to improved spending in social
casino and metaverse titles due to improved in-game sales
mechanics, features and events.
Given the sale of the social cards portfolio in August 2023, the
selected operational KPIs for all quarters have been revised to no
longer contain results from the social card games
portfolio.
Outlook
The guidance previously provided remains unchanged:
- Revenue for full
year 2024 is expected to be in the range of approximately € 540
million to € 560 million, with annual growth thereafter in the
medium term expected to be approximately 10%.
- Adjusted EBITDA for
full year 2024 is expected to be in the range of approximately € 75
million to € 80 million, with annual Adjusted EBITDA margin
thereafter in the medium term expected to be in the range of
approximately 14% to 16%.
Other information
Net Interest Bearing Debt
Net Interest Bearing Debt
in millions of €
|
31 March 2024 |
31 December 2023 |
Total non-current indebtedness |
175.1 |
172.0 |
Total current indebtedness |
12.8 |
12.6 |
Total financial indebtedness |
187.9 |
184.6 |
Deduct Zero interest bearing loans |
(0.1) |
(0.1) |
Net Interest Bearing Debt |
187.8 |
184.5 |
Less: Cash and cash equivalents |
(29.7) |
(40.3) |
Net Interest Bearing Debt (Bond terms) |
158.1 |
144.2 |
References to bond terms in the table above refer to the
terms as defined in the Senior Secured Callable Floating Rate Bonds
ISIN: NO0013017657
Reconciliation of net income to Adjusted EBITDA
Reconciliation of net income to Adjusted EBITDA
in millions of €
|
Q1 |
|
2024 |
2023 |
|
Azerion Group |
Premium Games |
Platform |
Other |
Azerion Group |
Premium Games |
Platform |
Other |
Profit / (loss) for the period |
(16.3) |
|
|
|
(12.4) |
|
|
|
Income Tax expense |
1.9 |
|
|
|
0.9 |
|
|
|
Profit / (loss) before tax |
(14.4) |
|
|
|
(11.5) |
|
|
|
Net finance costs |
8.7 |
|
|
|
3.8 |
|
|
|
Operating profit / (loss) |
(5.7) |
(2.0) |
(3.7) |
- |
(7.7) |
0.6 |
(8.4) |
0.1 |
Depreciation, amortisation and impairment |
10.4 |
2.5 |
7.9 |
- |
10.3 |
3.1 |
7.2 |
- |
Other |
0.6 |
0.1 |
0.5 |
- |
- |
0.1 |
- |
(0.1) |
Acquisition expenses |
3.8 |
0.1 |
3.7 |
- |
2.8 |
- |
2.8 |
- |
Restructuring |
0.7 |
0.1 |
0.6 |
- |
3.3 |
1.3 |
2.0 |
- |
Adjusted EBITDA |
9.8 |
0.8 |
9.0 |
- |
8.7 |
5.1 |
3.6 |
- |
Operating expenses
Breakdown of Operating expenses
in millions of €
|
Q1 |
2024 |
2023 |
Personnel costs |
(22.2) |
(27.8) |
Includes: |
|
|
Restructuring related expenses |
(0.7) |
(3.3) |
Other expenses |
(7.9) |
(11.5) |
Operating expenses |
(30.1) |
(39.3) |
Restructuring
In relation to ongoing consolidation and integration,
restructuring charges in Q2 2024 are expected to be approximately €
0.8 million. These costs impact the reported operating profit /
loss, but are removed from Adjusted EBITDA.
Condensed consolidated statement of profit or loss and other
comprehensive income
Condensed consolidated statement of profit or loss and other
comprehensive income
in millions of €
|
Q1 |
|
2024 |
2023 |
Revenue |
119.7 |
112.7 |
Costs of services and materials |
(86.5) |
(70.7) |
Personnel costs |
(22.2) |
(27.8) |
Depreciation |
(1.8) |
(1.9) |
Amortisation |
(8.6) |
(8.4) |
Other gains and losses1) |
1.6 |
(0.1) |
Other expenses |
(7.9) |
(11.5) |
Operating profit / (loss) |
(5.7) |
(7.7) |
|
|
|
Finance income |
1.0 |
2.9 |
Finance costs2) |
(9.7) |
(6.7) |
Net Finance costs |
(8.7) |
(3.8) |
|
|
|
Share in profit/(loss) of joint ventures and associates |
- |
- |
Profit / (loss) before tax |
(14.4) |
(11.5) |
|
|
|
Income tax expense |
(1.9) |
(0.9) |
Profit / (loss) for the period |
(16.3) |
(12.4) |
Attributable to: |
|
|
Owners of the company |
(16.6) |
(12.5) |
Non-controlling interest |
0.3 |
0.1 |
|
|
|
Exchange difference on translation of foreign operations |
(0.8) |
0.1 |
Total other comprehensive income |
(0.8) |
0.1 |
|
|
|
Total comprehensive income/(loss) |
(17.1) |
(12.3) |
Attributable to: |
|
|
Owners of the company |
(17.4) |
(12.2) |
Non-controlling interest |
0.3 |
(0.1) |
1)Earn-out results have been reclassified from Other expenses to
Other gains and losses
2)The main change Q1 2024 versus Q1 2023 comes from fair value
movement on the call option related to the settlement of the
shareholder loans as announced 11 December 2023.
Condensed consolidated statement of financial
position
Condensed consolidated statement of financial position
in millions of €
|
31 March 2024 |
31 December 2023 |
Assets |
|
|
Non-current assets |
414.1 |
413.6 |
Goodwill |
187.6 |
187.1 |
Intangible assets |
173.4 |
176.3 |
Property, plant and equipment |
21.3 |
17.0 |
Non-current financial assets |
29.5 |
30.8 |
Deferred tax asset |
2.2 |
2.3 |
Investment in joint venture and associate |
0.1 |
0.1 |
|
|
|
Current assets |
224.1 |
238.4 |
Trade and other receivables |
193.0 |
196.7 |
Current tax assets |
1.4 |
1.4 |
Cash and cash equivalents |
29.7 |
40.3 |
Total assets |
638.2 |
652.0 |
|
|
|
Equity |
|
|
Share capital |
1.2 |
1.2 |
Share premium |
140.2 |
140.2 |
Treasury shares |
- |
- |
Legal reserve |
28.7 |
27.7 |
Share based payment reserve |
12.8 |
12.7 |
Currency translation reserve |
(2.7) |
(1.9) |
Other equity instruments |
- |
0.0 |
Retained earnings |
(92.7) |
(75.6) |
Shareholders’ equity |
87.5 |
104.3 |
Non-controlling interest |
5.5 |
5.3 |
Total equity |
93.0 |
109.6 |
|
|
|
Liabilities |
|
|
Non-current liabilities |
218.2 |
220.1 |
Borrowings |
161.8 |
161.9 |
Lease liabilities |
13.3 |
10.1 |
Provisions |
1.6 |
1.6 |
Deferred tax liabilities |
32.0 |
30.0 |
Other non-current liabilities |
9.5 |
16.5 |
|
|
|
Current liabilities |
327.0 |
322.3 |
Borrowings |
7.6 |
8.4 |
Provisions |
2.2 |
3.6 |
Trade payables 1) |
145.0 |
142.0 |
Accrued liabilities1) |
103.1 |
112.7 |
Current tax liabilities |
11.6 |
13.4 |
Lease liabilities |
5.2 |
4.2 |
Other current liabilities1) |
52.3 |
38.0 |
Total liabilities |
545.2 |
542.4 |
Total equity and liabilities |
638.2 |
652.0 |
1)Trade, other payables and accrued liabilities have been
reclassified to Trade payables, Accrued liabilities and Other
current liabilities to better reflect the reporting by nature
Condensed consolidated statement of cash flow
Condensed consolidated statement of cash flow
In millions of €
|
2024 |
2023 |
|
Q1 |
Q1 |
Cash flows from operating activities |
|
|
Operating profit / (loss) |
(5.7) |
(7.7) |
|
|
|
Adjustments for operating profit / (loss): |
|
|
Depreciation and amortisation & Impairments |
10.4 |
10.3 |
Movements in provisions per profit and loss |
0.8 |
3.3 |
Share-based payments expense |
0.2 |
- |
Other non-cash items |
(3.0) |
- |
|
|
|
Changes in working capital items: |
|
|
(Increase)/Decrease in trade and other receivables |
2.8 |
19.8 |
Increase (decrease) in trade payables and other payables |
4.2 |
7.7 |
|
|
|
Utilization of provisions |
(2.3) |
(2.1) |
Interest received |
0.2 |
- |
Interest paid |
(4.5) |
(4.1) |
Income tax paid |
(1.4) |
- |
Net cash provided by (used for) operating activities |
1.7 |
27.2 |
|
|
|
Cash flows from investing activities |
|
|
Payments for property, plant and equipment |
(0.3) |
(0.5) |
Payments for intangibles |
(4.9) |
(6.2) |
Net cash outflow on acquisition of subsidiaries |
(3.6) |
(18.2) |
Net cash inflow/(outflow) from sale of business |
(0.4) |
- |
Net cash provided by (used for) investing activities |
(9.2) |
(24.9) |
|
|
|
Cash flows from financing activities |
|
|
Proceeds from external borrowings |
- |
0.1 |
Repayment of external borrowings |
(1.5) |
(1.5) |
Payment of principal portion of lease liabilities |
(1.5) |
(1.7) |
Dividends paid to shareholders of non-controlling interests |
(0.2) |
- |
Net cash provided by (used for) financing activities |
(3.2) |
(3.1) |
|
|
|
Net increase/(decrease) in cash and cash equivalents |
(10.7) |
(0.8) |
Effect of changes in exchange rates on cash and cash
equivalents |
0.1 |
0.2 |
Cash and cash equivalents at the beginning of the period |
40.3 |
50.9 |
Cash and cash equivalents at the end of the period |
29.7 |
50.3 |
Definitions
Adjusted EBITDA represents Operating Profit /
(Loss) excluding depreciation, amortisation, impairment of
non-current assets, restructuring and acquisition related expenses
and other items at management discretion, principally those
assessed as extraordinary items or non-recurring items which are
not in line with the ordinary course of business.
Adjusted EBITDA Margin represents Adjusted
EBITDA as a percentage of Revenue.
Average time in game per day measures how many
minutes per day, on average, the players of Premium Games spend in
the games. This demonstrates their engagement with the games, which
generates more opportunities to grow the ARPDAU.
Average DAUs represents average daily
active users, which is the number of distinct users per day
averaged across the relevant period.
ARPDAU represents Average Revenue per Daily
Active User, which is revenue per period divided by days in the
period divided by average daily active users in that period and
represents average per user in-game purchases for the period.
Financial Indebtedness represents as defined in
the terms and conditions of the Senior Secured Callable Floating
Rate Bonds ISIN: NO0013017657 any indebtedness in respect of:
- monies borrowed or
raised, including Market Loans;
- the amount of any
liability in respect of any Finance Leases;
- receivables sold or
discounted (other than any receivables to the extent they are sold
on a non-recourse basis);
- any amount raised
under any other transaction (including any forward sale or purchase
agreement) having the commercial effect of a borrowing;
- any derivative
transaction entered into in connection with protection against or
benefit from fluctuation in any rate or price (and, when
calculating the value of any derivative transaction, only the mark
to market value shall be taken into account, provided that if any
actual amount is due as a result of a termination or a close-out,
such amount shall be used instead);
- any counter
indemnity obligation in respect of a guarantee, indemnity, bond,
standby or documentary letter of credit or any other instrument
issued by a bank or financial institution; and
- (without double
counting) any guarantee or other assurance against financial loss
in respect of a type referred to in the above paragraphs
(1)-(6).
Net Interest Bearing Debt as defined in the
terms and conditions of the Senior Secured Callable Floating Rate
Bonds ISIN: NO0013017657 means the aggregate interest bearing
Financial Indebtedness less cash and cash equivalents (including
any cash from a Subsequent Bond Issue standing to the credit on the
Proceeds Account or another escrow arrangement for the benefit of
the Bondholders) of the Group in accordance with the Accounting
Principles (for the avoidance of doubt, excluding any Bonds owned
by the Issuer, guarantees, bank guarantees, Subordinated Loans, any
claims subordinated pursuant to a subordination agreement on terms
and conditions satisfactory to the Agent and interest bearing
Financial Indebtedness borrowed from any Group Company) as such
terms are defined in the terms and conditions of the Senior Secured
Callable Floating Rate Bonds ISIN: NO0013017657.
Operating expenses are defined as the aggregate
of personnel costs and other expenses as reported in the statement
of profit or loss and other comprehensive income. More details on
the reporting of cost by nature can be found in the published
annual financial statements of 2023.
Operating Profit / (Loss) represents revenue
less costs of services and materials, operating expenses,
depreciation and amortisation and other gains and losses.
Disclaimer and Cautionary Statements
This communication contains information that qualifies as inside
information within the meaning of Article 7(1) of the EU Market
Abuse Regulation.
This communication may include forward-looking statements. All
statements other than statements of historical facts are, or may be
deemed to be, forward-looking statements. Forward-looking
statements include, among other things, statements concerning the
potential exposure of Azerion to market risks and statements
expressing management’s expectations, beliefs, estimates,
forecasts, projections and assumptions. Words and expressions such
as aims, ambition, anticipates, believes, could, estimates,
expects, goals, intends, may, milestones, objectives, outlook,
plans, projects, risks, schedules, seeks, should, target, will or
other similar words or expressions are typically used to identify
forward-looking statements. Forward-looking statements are
statements of future expectations that are based on management’s
current expectations and assumptions and involve known and unknown
risks, uncertainties and other factors that are difficult to
predict and that could cause the actual results, performance or
events to differ materially from future results expressed or
implied by such forward-looking statements contained in this
communication. Readers should not place undue reliance on
forward-looking statements.
Any forward-looking statements reflect Azerion’s current views
and assumptions based on information currently available to
Azerion’s management. Forward-looking statements speak only as of
the date they are made and Azerion does not assume any obligation
to update or revise such statements as a result of new information,
future events or other information, except as required by law.
The interim financial results of Azerion Group N.V. as included
in this communication are required to be disclosed pursuant to the
terms and conditions of the Senior Secured Callable Floating Rate
Bonds ISIN: NO0013017657.
This report has not been reviewed or audited by Azerion’s
external auditor.
Certain financial data included in this communication consist of
alternative performance measures (“non-IFRS financial measures”),
including Adjusted EBITDA. The non-IFRS financial measures, along
with comparable IFRS measures, are used by Azerion’s management to
evaluate the business performance and are useful to investors. They
may not be comparable to similarly titled measures as presented by
other companies, nor should they be considered as an alternative to
the historical financial results or other indicators of Azerion
Group N.V.’s cash flow based on IFRS. Even though the non-IFRS
financial measures are used by management to assess Azerion Group
N.V.’s financial position, financial results and liquidity and
these types of measures are commonly used by investors, they have
important limitations as analytical tools, and the recipients
should not consider them in isolation or as a substitute for
analysis of Azerion Group N.V.’s financial position or results of
operations as reported under IFRS.
For all definitions and reconciliations of non-IFRS financial
measures please also refer to www.azerion.com/investors.
This report may contain forward-looking non-IFRS financial
measures. The Company is unable to provide a reconciliation of
these forward-looking non-IFRS financial measures to the most
comparable IFRS financial measures because certain information
needed to reconcile those non-IFRS financial measures to the most
comparable IFRS financial measures is dependent on future events
some of which are outside the control of Azerion. Moreover,
estimating such IFRS financial measures with the required precision
necessary to provide a meaningful reconciliation is extremely
difficult and could not be accomplished without unreasonable
effort. Non-IFRS financial measures in respect of future periods
which cannot be reconciled to the most comparable IFRS financial
measure are calculated in a manner which is consistent with the
accounting policies applied in Azerion Group N.V.’s consolidated
financial statements.
This communication does not constitute an offer to sell, or a
solicitation of an offer to buy, any securities or any other
financial instruments.
Contact
Investor Relations: ir@azerion.com Media relations:
press@azerion.com
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