Platform growth and integrations leading to increased revenue and improved
margins
Highlights of Q2 2023

  * Increased earnings driven by revenue growth and ongoing cost savings
  * Net revenue of approximately EUR 122 million for Q2 2023, up from EUR 104
    million in Q2 2022. Adjusted EBITDA of almost EUR 19 million, up by
    approximately 58% compared to Q2 2022.

* Upgraded expected annualized cost savings to at least EUR 20 million from at

    least EUR 15 million, excluding any effects from foreign exchange.  The
    expected savings are compared to the January 2023 baseline. Total operating

expenses Q2 2023 of EUR 38.1 million (including restructuring costs) only EUR

    1.9 million higher than Q2 2022 notwithstanding 8 acquisitions in H2 2022.
  * Sale of social card games portfolio completed 28 August 2023 for an initial
    cash consideration of EUR 81.3 million, subject to customary adjustments, with

an earnout based on the performance of the acquired business that could take the total consideration up to a maximum of EUR 150 million.
* At completion Azerion received close to EUR 67 million before income tax and

    approximately 15 months after the completion date Azerion will receive the
    remaining proceeds subject to the terms of the asset purchase agreement.
    Gain on sale estimated at approximately EUR70 million before income tax.
  * Launch of Azerion Smart Bidding, Azerion's improved AI-integrated bidding
    system to further enhance Azerion's pricing in open market auctions.
  * Launched Azerion Smart Content, integrating Vlyby technology with Zoomin
    content, providing publishers with additional contextual content for
    monetisation
  * Launch of Habbo X: Alpha 2, a play to earn metaverse environment which
    integrates blockchain technology, allowing brands such as EMA, Miffy and
    Cool Cats to collaborate with audiences and create lifetime engageable
    collectables, minted as an NFT
  * Updated guidance for full year 2023 confirms Adjusted EBITDA still expected
    to be at least EUR 75 million

Highlights of H1 2023

  * Net revenue of approximately EUR 235 million for H1 2023, up from EUR 198
    million in H1 2022.
  * Adjusted EBITDA of approximately EUR 27 million, up by approximately 55%
    compared to H1 2022.

Selected KPIs
Financial results - Azerion Group N.V. - Q2
in millions of EUR
+--------+--------------------------+--------------------------+-------+--------+
| |Q2 2023 |Q2 2022 | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
| |Net |Operating|Adjusted|Net |Operating|Adjusted|Net |Adjusted| | |revenue|profit / |EBITDA |revenue|profit / |EBITDA |revenue|EBITDA | | | |(loss) | | |(loss) | |growth |growth | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Group |122.0 |(2.9) |18.5 |103.9 |(3.1) |11.7 |17.4% |58.1% | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Platform|99.6 |(3.2) |13.3 |82.1 |(3.0) |7.9 |21.3% |68.4% | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Premium |22.4 |0.3 |5.2 |21.8 |0.1 |3.8 |2.8% |36.8% | |Games | | | | | | | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Other | |- |- | |(0.2) |- | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
Financial results - Azerion Group N.V. - H1
in millions of EUR
+--------+--------------------------+--------------------------+-------+--------+
| |YTD 2023 |YTD 2022 | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
| |Net |Operating|Adjusted|Net |Operating|Adjusted|Net |Adjusted| | |revenue|profit / |EBITDA |revenue|profit / |EBITDA |revenue|EBITDA | | | |(loss) | | |(loss) | |growth |growth | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Group |234.7 |(10.6) |27.2 |198.3 |(148.0) |17.6 |18.4% |54.5% | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Platform|188.9 |(11.6) |16.9 |154.6 |(14.4) |9.9 |22.2% |70.7% | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Premium |45.8 |1.0 |10.3 |43.7 |(0.6) |7.7 |4.8% |33.8% | |Games | | | | | | | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
|Other | |- |- | |(133.0) |- | | | +--------+-------+---------+--------+-------+---------+--------+-------+--------+
Message from the CEO
"The Company has continued to grow in Q2 and H1 2023 and made significant
progress in integrating and consolidating previous acquisitions. We are pleased
with the progress made in simplifying and optimising our operations and are
seeing the benefits of that work reflected in improved margins and
profitability. We have also successfully completed the divestment of our social
card games portfolio and remain focused on delivering synergies across the
platform and premium games segments.
In light of the achievements made in delivering our strategy, I am pleased to be
able to confirm that for full year 2023, after excluding the social card games
portfolio from completion of the sale, we still expect Adjusted EBITDA to be at
least EUR 75 million."
- Umut Akpinar
Financial overview
Net revenue
Net revenue for the quarter amounted to EUR 122.0 million an increase of
approximately 17%, compared to Q2 2022, mainly due to growth in the Platform
segment.
Net revenue for H1 2023 amounted to EUR 234.7 million an increase of approximately
18%, compared to H1 2022, mainly due to growth in the Platform segment.
Earnings
Adjusted EBITDA was EUR 18.5 million for the quarter compared to EUR 11.7 million in
Q2 2022, an increase of approximately 58%, due to increased revenue from
Platform business at higher margins due to efficiencies from integrations and
consolidations.
Adjusted EBITDA was EUR 27.2 million for H1 2023 compared to EUR 17.6 million in H1
2022, an increase of approximately 54%, due to increased revenue from Platform
business at higher margins due to efficiencies from integrations and
consolidations.
The operating loss for the quarter amounted to EUR (2.9) million, compared to a
loss of EUR (3.1) million in Q2 2022 mainly explained by higher gross profit
offset by higher amortization and restructuring costs in Q2 2023.
The operating loss for H1 2023 amounted to EUR (10.6) million, compared to a loss
of EUR (148.0) million in H1 2022 mainly explained by EUR 144.7 million of De-SPAC
related expenses incurred in H1 2022.
Cash flow
Cash flow from operating activities in Q2 2023 was an inflow of EUR 7.5 million.
Cash flow from investing activities was an outflow of EUR (12.7) million, mainly
due to earnouts paid related to acquired companies. Cash flow from financing
activities totalled an outflow of EUR (2.9) million.
Cash flow from operating activities in H1 2023 was an inflow of EUR 34.7 million.
Cash flow from investing activities was an outflow of EUR (37.6) million, mainly
due to earnouts paid related to acquired companies. Cash flow from financing
activities totalled an outflow of EUR (6.0) million.
Capex
Azerion capitalizes development costs related to 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 games, platforms, and
other new features. In Q2 2023 Azerion capitalized EUR 5.6 million, equivalent to
20.4% of gross personnel costs. In H1 2023 Azerion capitalized EUR 10.2 million,
equivalent to 16.2% of gross personnel costs.
Financial position and financing
Net interest bearing debt(*)()) amounted to EUR 182.5 million as of 30 June 2023,
mainly comprising outstanding bond loan with a nominal value of EUR 200 million
(part of a total EUR 300 million framework), which became a current borrowing at
April 2023 and lease liabilities with a balance of EUR 17.8 million less the cash
and cash equivalents position of EUR 42.2 million.
Applying the information above at 30 June 2023 and the full year 2023 guidance
of expected Adjusted EBITDA of at least EUR 75 million, implies an illustrative
Net interest bearing debt / Adjusted EBITDA ratio of approximately 2.4.
(*)()) As defined in section 1.1 of the Terms & Conditions of the Senior Secured
Callable Fixed Rate Bonds ISIN: SE0015837794. Please also refer to the
Definitions section and the notes of this Interim Report for more information.
Segment Platform
Our Platform segment includes our digital advertising activities and e-Commerce,
which are fully integrated through our technology. It generates Net revenue
mainly by displaying digital advertisements in both game and non-game content,
as well as selling and distributing AAA games through our e-commerce channels.
Platform is also integrated with parts of our Premium Games segment, leveraging
inter-segment synergies.
Platform - Selected Financial KPIs
Financial results - Platform
in millions of EUR
+---------------------------+-------+-------+--------+--------+
| | Q2 | Q2 | YTD | YTD |
+---------------------------+-------+-------+--------+--------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+--------+--------+
| Net revenue | 99.6 | 82.1 | 188.9 | 154.6 |
+---------------------------+-------+-------+--------+--------+
| Gross profit | 35.1 | 30.7 | 65.1 | 53.1 |
+---------------------------+-------+-------+--------+--------+
| Operating profit / (loss) | (3.2) | (3.0) | (11.6) | (14.4) |
+---------------------------+-------+-------+--------+--------+
| Adjusted EBITDA | 13.3 | 7.9 | 16.9 | 9.9 |
+---------------------------+-------+-------+--------+--------+
| Net revenue growth % | 21.3% | | 22.2% | |
+---------------------------+-------+-------+--------+--------+
| Gross profit margin % | 35.2% | 37.4% | 34.5% | 34.3% |
+---------------------------+-------+-------+--------+--------+
| Adjusted EBITDA growth % | 68.4% | | 70.7% | |
+---------------------------+-------+-------+--------+--------+
| Adjusted EBITDA margin % | 13.4% | 9.6% | 8.9% | 6.4% |
+---------------------------+-------+-------+--------+--------+
Platform Net revenue of EUR 99.6 million in Q2 2023, an increase of 21.3% compared
to Q2 2022, driven by integration of past acquisitions and global sales teams,
combined with the roll out of new ad formats on the platform. Platform Net
revenue of EUR 188.9 million in H1 2023, an increase of 22.2% compared to H1
2022, driven by integration and consolidation of previously acquired
businesses.
Adjusted EBITDA was EUR 13.3 million in Q2 2023, increasing by 68.4% compared to
Q2 2022 due to growth in higher margin direct sales teams performance, lower
personnel costs due to efficiency efforts as well as developments of platform
technology resulting in lower operating costs. Adjusted EBITDA was EUR 16.9
million in H1 2023, increasing by 70.7% compared to H1 2022, as a result of
platform development and efficiency efforts.
A legal dispute related settlement resulted in a cash outflow of EUR 0.4 million,
of which EUR 0.2 million was paid in Q2 2023 with an expected EUR 0.2 million due in
Q3 2023 and net release of provision gain of about EUR 0.6 million.
Initiatives in Q2 and H1 2023 include:

  * Launch of Azerion Smart Bidding, Azerion's improved AI-integrated bidding
    system to further enhance Azerion's pricing in open market auctions.

* Improved our Full Monetization Services, or FMS solution with Performance by

    Azerion for semantic segmentation allowing for better audience targeting.
  * Launched Smart Content, integrating Vlyby technology with Zoomin content,
    providing publishers with additional contextual content for monetisation.

* Developed an internal campaign management solution for Azerion ad ops teams,

    Azerion Marketplace, improving ad campaign coordination efficiencies and
    margin contribution.
  * Accelerated the production of puzzle and word web games by Azerion Studio's
    for news and media publishers resulting in increased revenues at higher
    margins due to lower licensing fees.
  * Successfully rolled out new Fanzone platform technology across current
    clients in the Netherlands, Belgium and Turkey, allowing sport clubs to

manage fan engagement, communication and monetisation through advertisement. Results also benefited from increased user engagement levels, with users
spending more time playing casual games, as well as strong performance in e-
Commerce. In addition, we have grown our casual games distribution portfolio
during Q2 2023, adding approximately 472 new games and 61 new publisher
partners.
Advertising - Selected Operational KPIs
Advertising - Operational KPIs
+--------------------------------------+-------+-------+-------+-------+-------+
| |Q2 2022|Q3 2022|Q4 2022|Q1 2023|Q2 2023| +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Digital Ads Sold per Month (bn) |9.5 |9.6 |10.7|12.2 |13.0 |
+--------------------------------------+-------+-------+-------+-------+-------+
|Advertising auction platform (bn) |4.3 |4.3 |5.4 |5.1 |6.1 | +--------------------------------------+-------+-------+-------+-------+-------+
|Publisher monetisation services (bn) |5.2 |5.3 |5.3 |7.1 |6.9 | +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Gross Revenue per Million | | | | | | |Processed Ad Requests from advertising|22.7 |23.9 |32.8 |30.0 |36.3 | |auction platform (EUR) | | | | | |
+--------------------------------------+-------+-------+-------+-------+-------+
|Previous reported figures (EUR) |9.1 |11.2 |16.7 |11.2 |15.6 |
+--------------------------------------+-------+-------+-------+-------+-------+
|Additional formats (EUR) |13.6 |12.7 |16.1 |18.8 |20.8 |
+--------------------------------------+-------+-------+-------+-------+-------+
The Average Digital Ads sold per Month (bn) increased to 13.0 billion from 9.5
billion in Q2 2022, reflecting the growth of the platform business through the
integration of previous acquisitions and increased ad format offering. As of Q1
2023 the reported number of average digital ads sold per month include the
following previous acquisitions: Adplay, Adverline, Monolith, Hybrid Theory,
MMedia, Takerate, Targetspot and Vlyby.
The Average gross revenue per million processed ad requests was EUR 36.3 in Q2
2023, compared to EUR 22.7 in Q2 2022, demonstrating our ability to grow and
manage the advertising auction platform efficiently and profitably whilst
providing an attractive proposition for advertisers and publishers. New ad
formats integrated into the platform have also contributed to higher margins.
Previously reported figures of Avg. Gross Revenue per Million Processed Ad
Requests (EUR) were of advertising auction platform Improve Digital. Additional ad
formats: Headerlift, Pubgalaxy, Sublime, Inskin, Strossle, Keymobile, Delta
Projects, Admoove and Quantum have been included from Q1 2022, Infinia was
included in figures as of Q2 2022 and Madvertise as of Q3 2022. Additional new
ad formats have been included as of Q1 2023, these include: Adplay, Adverline,
Monolith, Hybrid Theory, MMedia, Takerate, Targetspot and Vlyby. In Q4 2022,
Average gross revenue per million ad requests was revised to exclude ad requests
that are rejected before entering our advertising auction platform. As a result
this KPI was renamed as Average gross revenue per million processed ad requests.
Segment Premium Games
Our Premium Games segment includes social card and casino games and metaverse,
comprising nine premium game titles. 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. The aim of this segment is
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.
Premium Games - Selected Financial KPIs
Financial results - Premium Games
in millions of EUR
+---------------------------+-------+-------+-------+-------+
| | Q2 | Q2 | YTD | YTD |
+---------------------------+-------+-------+-------+-------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+-------+-------+
| Net revenue | 22.4 | 21.8 | 45.8 | 43.7 |
+---------------------------+-------+-------+-------+-------+
| Gross profit | 10.9 | 11.2 | 22.9 | 21.7 |
+---------------------------+-------+-------+-------+-------+
| Operating profit / (loss) | 0.3 | 0.1 | 1.0 | (0.6) |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA | 5.2 | 3.8 | 10.3 | 7.7 |
+---------------------------+-------+-------+-------+-------+
| Net revenue growth % | 2.8% | | 4.8% | |
+---------------------------+-------+-------+-------+-------+
| Gross profit margin % | 48.7% | 51.4% | 50.0% | 49.7% |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA growth % | 36.8% | | 33.8% | |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA margin % | 23.2% | 17.4% | 22.5% | 17.6% |
+---------------------------+-------+-------+-------+-------+
Premium Games Net revenue was EUR 22.4 million in Q2 2023, an increase of 2.8%
compared to Q2 2022. Premium Games Net revenue was EUR 45.8 million in H1 2023, an
increase of 4.8% compared to H1 2022, with both Q2 and H1 2023 results
reflecting growth in social card and social casino games, offset in part by
metaverse.
Adjusted EBITDA was EUR 5.2 million in Q2 2023, an increase of 36.8% compared to
Q2 2022, due to higher top line performance combined with efficiency programmes
reducing costs. Adjusted EBITDA was EUR 10.3 million in H1 2023, an increase of
33.8% compared to H1 2022, due to higher top line performance combined with
lower costs due to efficiency programmes.
On August 1 2023, we announced that we entered into a definitive agreement with
Playtika for the sale of our social card games portfolio. This transaction was
completed on August 28 2023, further information can be found in the section
Sale of social card games portfolio.
Premium Games - Selected Operational KPIs
Premium Games - Operational KPIs
+-------------------------------+-------+-------+-------+-------+-------+
| |Q2 2022|Q3 2022|Q4 2022|Q1 2023|Q2 2023|
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. Time in Game per Day (min)|80 |80 |79 |84 |84 |
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. DAUs (thousands) |569 |556 |559 |601 |558 |
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. ARPDAU (EUR) |0.40 |0.42 |0.45 |0.42 |0.42 |
+-------------------------------+-------+-------+-------+-------+-------+

  * The Average time in game per day increased in Q2 2023 by 5% compared to Q2
    2022 due to the development of new features to stimulate user generated
    content in social games.
  * The Average daily active users (DAUs) remained relatively stable in Q2 2023

compared to the previous year, this was due to increased DAUs in social card games offset by decreasing number of users in metaverse title as a result of

    reduced user acquisition spend.
  * The Average revenue per daily active user (ARPDAU) increased by almost 5%
    compared to Q2 2022, due to stable loyal user base spending in game.

Segment Other
Reporting Segment Other contained in H1 2023 an operating loss of EUR - million
(H1 2022: EUR (133.0) million). The variance is mainly explained by the H1 2022
incurred De-SPAC related expenses of EUR 133 million. Segment Other reported an
Adjusted EBITDA loss in H1 2023 of EUR - million (H1 2022: EUR - million).
Outlook
Taking into account the divestment of the social card games portfolio as from
28 August 2023, the Company is sharing the following updated outlook for full
year 2023:

  * Adjusted EBITDA for 2023 was previously expected to be at least EUR 75
    million. After excluding the divested social card games portfolio as from
    completion of the sale, Adjusted EBITDA for 2023 is still expected to be at
    least EUR 75 million.
  * Annual Adjusted EBITDA margin thereafter was expected to grow and be in the
    range of 14% to 16% in the medium term. Azerion expects to be approaching

the lower end of its guidance for full year 2023 and maintains the upper end of its range in the medium term. The expected improvement in Adjusted EBITDA margin is expected to be primarily driven by gross profit margin
optimisation, cost efficiencies and overall benefits of scale as the Azerion

    platform grows.
  * Net revenue for 2023 was previously expected to be around EUR 560 million.
    After excluding the divested social card games portfolio as from completion

of the sale, Net Revenue for full year 2023 is expected to be around EUR 540 million. Annual Net revenue growth thereafter is expected to be around 15%.
This outlook does not include the impact of any future material acquisitions or
divestments.
Sale of social card games portfolio
Playtika Holding Corp and Azerion announced on 1 August 2023 that they had
entered into a definitive agreement for Playtika to acquire from Azerion its
social card games portfolio.
The sale was completed on 28 August 2023, for an initial cash consideration of EUR
81.3 million, subject to customary adjustments, with an earnout based on the
performance of the acquired business that could take the total consideration up
to a maximum of EUR 150 million. At completion Azerion received close to EUR 67
million and approximately 15 months after the completion date Azerion will
receive the remaining proceeds relating to the performance based earnout and
other contractual terms, subject to the terms of the asset purchase agreement.
The gain on sale before income tax is estimated at approximately EUR 70 million.
The earnout consideration is based on the Adjusted EBITDA, as defined in the
asset purchase agreement, of the social card games portfolio for the period
running from 1 October 2023 until 30 September 2024 (the "Earnout Period"), and
calculated by multiplying the incremental Adjusted EBITDA of the social card
games portfolio above the "Baseline" (as defined below) by a multiple of between
6 and 7 (both inclusive); the specific multiple to be applied is contingent upon
the revenue growth of the social card games portfolio achieved during the
Earnout Period. The "Baseline" is defined as the last twelve months Adjusted
EBITDA on a carve-out basis of approximately EUR 13.5 million.
The table below includes the Net Revenue and Adjusted EBITDA from the social
card games portfolio.
Net revenue and Adjusted EBITDA of the social sard games portfolio
in millions of EUR
+-----------------+-------------------------------+--------------------+
| | 2022 | 2023 |
+-----------------+-----+-----+-----+------+------+------+------+------+
| | Q1 | Q2 | Q3 | Q4 | FY | Q1 | Q2 | YTD |
+-----------------+-----+-----+-----+------+------+------+------+------+
| Net revenue | 8.8 | 8.8 | 9.3 | 10.2 | 37.1 | 11.3 | 10.3 | 21.6 |
+-----------------+-----+-----+-----+------+------+------+------+------+
| Adjusted EBITDA | 2.8 | 2.6 | 3.7 | 2.6 | 11.7 | 3.5 | 4.1 | 7.6 |
+-----------------+-----+-----+-----+------+------+------+------+------+
In the table above, Adjusted EBITDA includes a central cost allocation for H1
2023 of approximately EUR 1.5 million. These costs will be addressed as part of
our ongoing cost management programme.
Other information
Interest Bearing Debt
interest Bearing Debt
in millions of EUR
+----------------------------------------+--------------+------------------+
| | 30 June 2023 | 31 December 2022 |
+----------------------------------------+--------------+------------------+
| Total non-current indebtedness | 16.2 | 215.8 |
+----------------------------------------+--------------+------------------+
| Total current indebtedness | 208.5 | 12.8 |
+----------------------------------------+--------------+------------------+
| Total financial indebtedness | 224.7 | 228.6 |
+----------------------------------------+--------------+------------------+
| Deduct Zero interest bearing loans | - | (0.1) |
+----------------------------------------+--------------+------------------+
| Interest Bearing Debt | 224.7 | 228.5 |
+----------------------------------------+--------------+------------------+
| Less: Cash and cash equivalents | (42.2) | (50.9) |
+----------------------------------------+--------------+------------------+
| Net Interest Bearing Debt (Bond terms) | 182.5 | 177.6 |
+----------------------------------------+--------------+------------------+
References to the bond terms in the table above refer to the terms as defined in
the senior secured callable fixed rate bond ISIN: SE0015837794
Reconciliation of net income to Adjusted EBITDA
Reconciliation of net income to Adjusted EBITDA - Q2
In millions of EUR
+-------------+---------------------------------------------------------------------+
| |Q2 |
+-------------+------------------------------+------------------------------+-------+
| |2023 |2022 |
+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|             |Azerion|Premium|Platform|Other|Azerion|Premium|Platform|Other|
|             |Group  |Games  |        |     |Group  |Games  |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Profit /     |       |       |        |     |       |       |        |     |
|(loss) for   |(9.7)  |       |        |     |(10.0) |       |        |     |
|the period   |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Income Tax   |2.4    |       ||     |0.6    |       |        |     |
|expense      |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Profit /     |       |       |        |     |       |       |        |     |
|(loss) before|(7.3)  |       |        |     |(9.4)  |       |        |     |
|tax          |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Net finance  |4.4    |       |        |     |6.3    |       |        |     |
|costs        |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Operating    |       |       |        |     |       |       |        |     |
|profit /     |(2.9)  |0.3    |(3.2)   |-    |(3.1)  |0.1    |(3.0)   |(0.2)|
|(loss)       |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Depreciation |       |       |        |     |       |       |        |     |
|&            |10.9   |3.4    |7.5     |-    |8.7    |2.6    |6.1     |-    |
|Amortization |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|De-SPAC      |       |       |        |     |       |       |        |     |
|related      |-      |-      |-       |-    |3.1    |1.0    |1.9     |0.2  |
|expenses     |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+
|Other |1.5 |1.1 |0.5 |(0.1)|(0.9) |0.1 |(1.0) |- |
+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Acquisition  |4.9    |-      |4.8     |0.1  |2.6    |-      |2.6     |-    |
|expenses     |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+
|Restructuring|4.1 |0.4 |3.7 |- |1.3 |- |1.3 |- |
+-------------+-------+-------+--------+-----+-------+-------+--------+-----+

|Adjusted     |18.5   |5.2    |13.3    |-    |11.7   |3.8    |7.9     |-    |
|EBITDA       |       |       |        |     |       |       |        |     |

+-------------+-------+-------+--------+-----+-------+-------+--------+-----+
Reconciliation of net income to Adjusted EBITDA - H1
In millions of EUR
+-------------+-----------------------------------------------------------------------+
| |YTD |
+-------------+------------------------------+--------------------------------+-------+
| |2023 |2022 |
+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|             |Azerion|Premium|Platform|Other|Azerion|Premium|Platform|Other  |
|             |Group  |Games  |        |     |Group  |Games  |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Profit /     |       |       |        |     |       |       |        |       |
|(loss) for   |(22.1) |       |        |     |(144.8)|       |        |       |
|the period   |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Income Tax   |3.3    |       |        |     |1.3    |       |        |       |
|expense      |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Profit /     |       |       |        |     |       |       |        |       |
|(loss) before|(18.8) |       |        |     |(143.5)|       |        |       |
|tax          |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Net finance  |8.2    |       |        |     |(4.5)  |       |        |       |
|costs        |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Operating    |       |       |        |     |       |       |        |       |
|profit /     |(10.6) |1.0    |(11.6)  |-    |(148.0)|(0.6)  |(14.4)  |(133.0)|
|(loss)       |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Depreciation |       |       |        |     |       |       |        |       |
|&            |21.2   |6.6    |14.7    |(0.1)|16.7   |5.7    |11.2    |(0.2)  |
|Amortization |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|De-SPAC      |       |       |        |     |       |       |        |       |
|related      |-      |-      |-       |-    |144.7  |2.3    |9.4     |133.0  |
|expenses     |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Other |1.5 |1.0 |0.5 |- |0.3 |0.3 |(0.2) |0.2 |
+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Acquisition  |7.7    |-      |7.6     |0.1  |2.6    |-      |2.6     |-      |
|expenses     |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Restructuring|7.4 |1.7 |5.7 |- |1.3 |- |1.3 |- |
+-------------+-------+-------+--------+-----+-------+-------+--------+-------+

|Adjusted     |27.2   |10.3   |16.9    |-    |17.6   |7.7    |9.9     |-      |
|EBITDA       |       |       |        |     |       |       |        |       |

+-------------+-------+-------+--------+-----+-------+-------+--------+-------+
Operating expenses
Breakdown of Operating expenses - Q2
in millions of EUR
+------------------------------+-----------------------------------+

|                              |Q2                                 |
|                              +---------------+------+------------+
|                              |2023           |2022  |
|                              +---------------+------+------+
|                              |Personnel costs|(26.0)|(23.6)|

+------------------------------+---------------+------+------+
|Includes: | | |
+------------------------------+---------------+------+
|Restructuring related expenses|(4.1) |(1.3) |
+------------------------------+---------------+------+
|Other expenses |(12.1) |(12.6)|
+------------------------------+---------------+------+
|Operating expenses |(38.1) |(36.2)|
+------------------------------+---------------+------+
|Of which: | | |
+------------------------------+---------------+------+
|Platform |(30.8) |(27.3)|
+------------------------------+---------------+------+
|Premium Games |(7.1) |(8.5) |
+------------------------------+---------------+------+
Breakdown of Operating expenses - H1
in millions of EUR
+-----------------------------------------+------------------------------------+
| |YTD | | +---------------+-------+------------+

|                                         |2023           |2022   |
|                                         +---------------+-------+------+
|                                         |Personnel costs|(53.8) |(63.1)|

+-----------------------------------------+---------------+-------+------+
|Includes: | | |
+-----------------------------------------+---------------+-------+
|Restructuring related expenses |(7.4) |(1.3) |
+-----------------------------------------+---------------+-------+

|Azerion Founder Warrants, reported as    |-              |(9.9)  |
|share-based payment expense              |               |       |

+-----------------------------------------+---------------+-------+

|De-SPAC early exercised share-based      |-              |(10.3) |
|payment expense                          |               |       |

+-----------------------------------------+---------------+-------+
|Other expenses |(23.7) |(142.1)|
+-----------------------------------------+---------------+-------+
|Includes: | | |
+-----------------------------------------+---------------+-------+
|De-SPAC transaction related expenses | |(121.4)|
+-----------------------------------------+---------------+-------+
|Operating expenses |(77.5) |(205.2)|
+-----------------------------------------+---------------+-------+
|Of which: | | |
+-----------------------------------------+---------------+-------+
|Platform |(62.1) |(55.5) |
+-----------------------------------------+---------------+-------+
|Premium Games |(15.3) |(16.6) |
+-----------------------------------------+---------------+-------+
Restructuring
In relation to ongoing consolidation and integration, restructuring charges in
Q3 2023 are expected to be around EUR 1 million. These costs impact the reported
operating profit / loss, but are removed from Adjusted EBITDA.
Bond Refinancing
On 8 April 2021, the Group issued senior secured callable fixed rate bonds for a
total of EUR 200 million, within a total framework amount of EUR 300 million. The
maturity date of the bonds is 28 April 2024 and the bonds carry a fixed interest
rate of 7.25% per annum. The management team are fully engaged in evaluating the
options available to refinance the bonds. Those options include, but are not
limited to, pursuing a similar repeat bond issuance, the implementation of
alternative external third-party financing solutions and/or utilisation of other
internally available financial resources. The refinancing strategy and execution
planning will continue and be finalised in an appropriate timeframe taking into
account considerations relating to business performance, strategic and
operational requirements, internal cash generation, any implied deleveraging and
applicable market conditions.
In relation to the above, Azerion has also mandated Pareto Securities AB to
conduct a series of fixed income investor meetings and subject to, inter alia,
market conditions, a bond issue may follow (the "New Bonds"). The proceeds from
the New Bonds are intended to be used to refinance the Company's outstanding EUR
200 million bond (ISIN: SE0015837794) and to finance general corporate purposes.
Condensed consolidated unaudited financial Results for the six-month period
ended 30 June 2023
Introduction
The principal activities of Azerion Group N.V. ('the Company') and its group
companies (jointly, the 'Group') are described in the Annual Report 2022. The
interim financial results for the six months period ended 30 June 2023 consist
of the condensed consolidated financial statements. the management report and
responsibility statement by Azerion Group N.V. Management Board. The information
in this interim financial report has not been audited or reviewed by Azerion
Group N.V. external auditor.
Responsibility Statement
Pursuant to section 5:25d, paragraph 2(c), of the Dutch Financial Supervision
Act (Wet op het financieel toezicht), the Management Board of Azerion Group N.V.
hereby declares that to the best of its knowledge:
1. the condensed consolidated financial statements for the six-month period
ended 30 June 2023 give a true and fair view of the assets, liabilities,
financial position and profit or loss of Azerion Group N.V. and the entities included in the consolidation taken as a whole; and
2. the interim report of the Management Board for the period ended 30 June

    2023 gives a fair review of the information required pursuant to article
    5:25d, paragraph 8 and 9 of the Dutch Financial Supervision Act regarding
    Azerion Group N.V. and the entities included in the consolidation.

Schiphol-Rijk, 31 August 2023
Management BoardMr. U. Akpinar
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 EUR
+-------------------------------------------+----+------+------+-------+-------+
| |Note|Q22023|Q22022|YTD2023|YTD2022| +-------------------------------------------+----+------+------+-------+-------+
|Net revenue | |122.0 |103.9 |234.7 |198.3 | +-------------------------------------------+----+------+------+-------+-------+
|Costs of services and materials | |(76.0)|(62.0)|(146.7)|(123.6)| +-------------------------------------------+----+------+------+-------+-------+
|Gross profit | |46.0 |41.9 |88.0 |74.7 | +-------------------------------------------+----+------+------+-------+-------+
|Personnel costs | |(26.0)|(23.6)|(53.8) |(63.1) | +-------------------------------------------+----+------+------+-------+-------+
|Depreciation | |(2.0) |(1.6) |(3.9)|(3.2) |
+-------------------------------------------+----+------+------+-------+-------+
|Amortization | |(8.9) |(7.1) |(17.3) |(13.5) | +-------------------------------------------+----+------+------+-------+-------+
|Other gains and losses | |0.1 |(0.1) |0.1 |(0.8) | +-------------------------------------------+----+------+------+-------+-------+
|Other expenses | |(12.1)|(12.6)|(23.7) |(142.1)| +-------------------------------------------+----+------+------+-------+-------+
|Operating profit / (loss) | |(2.9) |(3.1) |(10.6) |(148.0)| +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Finance income | |2.5 |(0.5) |5.4 |16.2 | +-------------------------------------------+----+------+------+-------+-------+
|Finance costs | |(6.9) |(5.8) |(13.6) |(11.7) | +-------------------------------------------+----+------+------+-------+-------+
|Net Finance costs | |(4.4) |(6.3) |(8.2) |4.5 | +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Profit / (loss) before tax | |(7.3) |(9.4) |(18.8) |(143.5)| +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Income tax expense |15 |(2.4) |(0.6) |(3.3) |(1.3) | +-------------------------------------------+----+------+------+-------+-------+
|Profit / (loss) for the period | |(9.7) |(10.0)|(22.1) |(144.8)| +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Attributable to: | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Owners of the company | |(10.0)|(10.1)|(22.5) |(144.7)| +-------------------------------------------+----+------+------+-------+-------+
|Non-controlling interest | |0.3 |0.1 |0.4 |(0.1) | +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Exchange difference on translation of | |(0.1) |(0.7) |- |(1.3) | |foreign operations | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Total other comprehensive income | |(9.8) |(10.7)|(22.1) |(146.1)| +-------------------------------------------+----+------+------+-------+-------+
|Attributable to: | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Owners of the company | |(13.0)|(10.9)|(25.2) |(145.3)| +-------------------------------------------+----+------+------+-------+-------+
|Non-controlling interest | |3.2 |0.2 |3.1 |(0.8) | +-------------------------------------------+----+------+------+-------+-------+
| | | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Loss per share for losses attributable to | | | | | | |the ordinary equity holders of the company:| | | | | | +-------------------------------------------+----+------+------+-------+-------+
|Basic profit/(loss) per share (in EUR) |16 | | |(0.19) |(1.30) |
+-------------------------------------------+----+------+------+-------+-------+
|Diluted profit/(loss) per share (in EUR) |16 | | |(0.19) |(1.30) |
+-------------------------------------------+----+------+------+-------+-------+
Condensed consolidated statement of financial position
Condensed consolidated statement of financial position
in millions of EUR
+------------------------------------------+-----+------------+----------------+
| |Notes|30 June 2023|31 December 2022| +------------------------------------------+-----+------------+----------------+
|Assets | | | | +------------------------------------------+-----+------------+----------------+
|Non-current assets | |415.2 |429.3 | +------------------------------------------+-----+------------+----------------+
|Goodwill |10 |184.9 |184.2 | +------------------------------------------+-----+------------+----------------+
|Intangible assets |9 |172.1 |186.2 | +------------------------------------------+-----+------------+----------------+
|Property, plant and equipment |8 |18.7 |20.5 | +------------------------------------------+-----+------------+----------------+
|Non-current financial assets | |38.0 |36.8 | +------------------------------------------+-----+------------+----------------+
|Deferred tax assets | |1.4 |1.5 | +------------------------------------------+-----+------------+----------------+
|Investment in joint ventures | |0.1 |0.1 | +------------------------------------------+-----+------------+----------------+
| | | | | +------------------------------------------+-----+------------+----------------+
|Current assets | |180.5 |209.2 | +------------------------------------------+-----+------------+----------------+
|Trade and other receivables | |127.9 |157.3 | +------------------------------------------+-----+------------+----------------+
|Current tax assets | |1.8 |1.0 | +------------------------------------------+-----+------------+----------------+
|Cash and cash equivalents | |42.2 |50.9 | +------------------------------------------+-----+------------+----------------+
|Assets classified as held for sale |7 |8.6 |- | +------------------------------------------+-----+------------+----------------+
|Total assets | |595.7 |638.5 | +------------------------------------------+-----+------------+----------------+
| | | | | +------------------------------------------+-----+------------+----------------+
|Equity | | | | +------------------------------------------+-----+------------+----------------+
|Share capital | |1.2 |1.2 | +------------------------------------------+-----+------------+----------------+
|Share premium | |140.3 |130.8 | +------------------------------------------+-----+------------+----------------+
|Treasury shares at cost | |(0.8) |- | +------------------------------------------+-----+------------+----------------+
|Legal reserve | |28.5 |25.2 | +------------------------------------------+-----+------------+----------------+
|Share based payment reserve | |13.2 |13.7 | +------------------------------------------+-----+------------+----------------+
|Currency translation reserve | |(1.3) |(1.3) | +------------------------------------------+-----+------------+----------------+
|Other equity instruments | |20.7 |29.0 | +------------------------------------------+-----+------------+----------------+
|Retained earnings | |(132.9) |(104.8) | +------------------------------------------+-----+------------+----------------+
|Shareholders' equity | |68.9 |93.8 | +------------------------------------------+-----+------------+----------------+
|Non-controlling interest | |5.1 |2.4 | +------------------------------------------+-----+------------+----------------+
|Total equity |11 |74.0 |96.2 | +------------------------------------------+-----+------------+----------------+
| | | | | +------------------------------------------+-----+------------+----------------+
|Liabilities | | | | +------------------------------------------+-----+------------+----------------+
|Non-current liabilities | |57.3 |257.7 | +------------------------------------------+-----+------------+----------------+
|Borrowings |14 |3.3 |201.5 | +------------------------------------------+-----+------------+----------------+
|Lease liabilities | |12.9 |14.3 | +------------------------------------------+-----+------------+----------------+
|Provisions |12 |1.3 |1.6 | +------------------------------------------+-----+------------+----------------+
|Deferred tax liabilities | |27.9 |25.3 | +------------------------------------------+-----+------------+----------------+
|Other non-current liability |13 |11.9 |15.0 | +------------------------------------------+-----+------------+----------------+
| | | | | +------------------------------------------+-----+------------+----------------+
|Current liabilities | |464.4 |284.6 | +------------------------------------------+-----+------------+----------------+
|Borrowings |14 |203.6 |7.9 | +------------------------------------------+-----+------------+----------------+
|Lease liabilities | |4.9 |4.9 | +------------------------------------------+-----+------------+----------------+
|Provisions |12 |4.1 |0.9 | +------------------------------------------+-----+------------+----------------+
|Trade, other payables and accrued | |226.0 |221.9 | |liabilities | | | | +------------------------------------------+-----+------------+----------------+
|Current tax liabilities | |6.9 |5.4 | +------------------------------------------+-----+------------+----------------+
|Other current liabilities |13 |18.9 |43.6 | +------------------------------------------+-----+------------+----------------+
|Total liabilities | |521.7 |542.3 | +------------------------------------------+-----+------------+----------------+
|Total equity and liabilities | |595.7 |638.5 | +------------------------------------------+-----+------------+----------------+
Condensed consolidated statement of cash flow
Condensed consolidated statement of cash flow
in millions of EUR
+-------------------------------------------------+------+------+------+-------+
| |2023 |2022 |2023 |2022 | +-------------------------------------------------+------+------+------+-------+
| |Q2 |Q2 |YTD |YTD | +-------------------------------------------------+------+------+------+-------+
|Operating profit / (loss) |(2.9) |(3.1) |(10.6)|(148.0)| +-------------------------------------------------+------+------+------+-------+
| | | | | | +-------------------------------------------------+------+------+------+-------+
|Adjustments for | | | | | +-------------------------------------------------+------+------+------+-------+
|Depreciation and amortisation |10.9 |8.7 |21.2 |16.8 | +-------------------------------------------------+------+------+------+-------+
|Movements in provisions per profit and loss |3.3 |1.5 |6.6 |1.5 |+-------------------------------------------------+------+------+------+-------+
|Share-based payments expense |0.6 |2.3 |0.6 |22.4 | +-------------------------------------------------+------+------+------+-------+
|De-SPAC related expenses |- |2.0 |- |14.5 | +-------------------------------------------------+------+------+------+-------+
|De-SPAC listing expense |- |- |- |107.1 | +-------------------------------------------------+------+------+------+-------+
|Other non-cash items |- |2.6 |- |2.1 | +-------------------------------------------------+------+------+------+-------+
| | | | | | +-------------------------------------------------+------+------+------+-------+
|Changes in working capital items: | | | | | +-------------------------------------------------+------+------+------+-------+
|(Increase)/Decrease in trade and other |3.9 |(11.7)|23.7 |8.5 | |receivables | | | | | +-------------------------------------------------+------+------+------+-------+
|Increase (Decrease) in trade payables and other |0.2 |13.0 |7.9 |(4.4) | |payables | | | | | +-------------------------------------------------+------+------+------+-------+
| | | | | | +-------------------------------------------------+------+------+------+-------+
|Utilization of provisions |(3.1) |(0.7) |(5.2) |(0.7) | +-------------------------------------------------+------+------+------+-------+
|Interest paid |(4.8) |(4.1) |(8.9) |(9.4) | +-------------------------------------------------+------+------+------+-------+
|Income tax paid |(0.6) |(0.1) |(0.6) |(0.5) | +-------------------------------------------------+------+------+------+-------+
|Net cash provided by (used for) operating |7.5 |10.4 |34.7 |9.9 | |activities | | | | | +-------------------------------------------------+------+------+------+-------+
| | | | | | +-------------------------------------------------+------+------+------+-------+
|Cash flows from investing activities | | | | | +-------------------------------------------------+------+------+------+-------+
|Payments for property, plant and equipment |(0.1) |- |(0.6) |(0.9) | +-------------------------------------------------+------+------+------+-------+
|Payments for intangibles |(5.8) |(5.0) |(12.0)|(9.7) | +-------------------------------------------------+------+------+------+-------+
|Net cash outflow on acquisition of subsidiaries |(6.8) |(36.6)|(25.0)|(39.2) | +-------------------------------------------------+------+------+------+-------+
|Net cash provided by (used for) investing |(12.7)|(41.6)|(37.6)|(49.8) | |activities | | | | | +-------------------------------------------------+------+------+------+-------+
| | | | | | +-------------------------------------------------+------+------+------+-------+
|Cash flows from financing activities | | | | | +-------------------------------------------------+------+------+------+-------+
|Proceeds from external borrowings |- |(0.1) |0.1 |- | +-------------------------------------------------+------+------+------+-------+
|Repayment of external bor