- Nachrichtendetail
-
28.02.2024 07:15:06 - dpa-AFX: GNW-Adhoc: Azerion publishes Interim Unaudited Financial Results Q4 2023 and Preliminary Unaudited Financial Results Full Year 2023
Platform growth and improved efficiency driving performance in Q4
Highlights of Q4 2023
* Net revenue of EUR 171.8 million, up 15.5% from EUR 148.8 million in Q4 2022,
approximately 12.9 billion in Q4 2023, up from approximately 10.7 billion in
Partners creating new monetisation opportunities for our publisher partners.
Highlights Full Year 2023
* Net revenue of EUR 515.0 million FY 2023, up 13.8% from EUR 452.6 million FY
(*))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.
Selected KPIs
Financial results - Azerion Group N.V.
in millions of EUR
+---------------------------+-------+-------+-------+---------+
| | Q4 | Q4 | FY | FY |
+---------------------------+-------+-------+-------+---------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+-------+---------+
| Net revenue | 171.8 | 148.8 | 515.0 | 452.6 |
+---------------------------+-------+-------+-------+---------+
| Operating profit / (loss) | 6.8 | 8.8 | 73.5 | (139.0) |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA | 25.9 | 22.1 | 71.4 | 52.1 |
+---------------------------+-------+-------+-------+---------+
| Net revenue growth % | 15.5% | | 13.8% | |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA growth % | 17.2% | | 37.0% | |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA margin % | 15.1% | 14.9% | 13.9% | 11.5% |
+---------------------------+-------+-------+-------+---------+
Message from the CEO
"I am proud of our achievements in 2023. While navigating a challenging market,
we successfully delivered solid top line and Adjusted EBITDA growth and created
further value for all our stakeholders. The integration and consolidation of
past acquisitions allowed us to improve margins and drive substantial cost
savings, while we also strengthened our balance sheet through the strategic sale
of our social cards portfolio. Through these initiatives, we have continued to
build the technological, financial and operational foundations to scale our
business further in the coming years.
Looking ahead to 2024, we see momentum building up in our business, with both
demand and publisher partners showing real potential for accelerating our growth
through Azerion's digital advertising platform. The ongoing consolidation of the
European market also offers exciting opportunities to expand our business,
leveraging the scale benefits associated with our advertising platform, both
through organic market share gains as well as via potential partnerships and
acquisitions."
- Umut Akpinar
Financial overview
Net revenue
Net revenue for the quarter amounted to EUR 171.8 million compared to EUR 148.8
million in Q4 2022, an increase of approximately 15.5%. The increase in Net
Revenue year on year came mainly from growth in the Platform segment of
approximately EUR 33.1 million, driven largely by advertising revenue from Direct
sales and the integration of previous acquisitions, offset by a reduction in Net
Revenue in Premium Games due to the sale of the social card games portfolio
completed during Q3 2023, with that portfolio contributing Net revenue of EUR
10.2 million in Q4 2022.
Net revenue FY 2023 amounted to EUR 515.0 million compared to EUR 452.6 million in
FY 2022, an increase of approximately 13.8%, mainly due to Net revenue growth in
the Platform segment between the same periods of approximately EUR 73.9 million,
particularly in advertising revenue from Direct sales and from the integration
of previous acquisitions.
Earnings
The operating profit for the quarter amounted to EUR 6.8 million, compared to an
operating profit of EUR 8.8 million in Q4 2022, with the reduction mainly
explained by the loss of earnings due to the sale of the social card games
portfolio completed on 28 August 2023.
Adjusted EBITDA was EUR 25.9 million for the quarter compared to EUR 22.1 million in
Q4 2022, an increase of 17.2% due to increased Net revenue from the Platform
segment at higher margins driven by increased contribution to advertising
revenue from Direct sales, continued integration of previous acquisitions and
ongoing cost optimisation, partly offset by the loss of earnings due to the sale
of the social card games portfolio.
The operating profit for FY 2023 amounted to EUR 73.5 million, compared to a loss
of EUR (139.0) million for FY 2022 mainly explained by the gain on the sale of the
social card games portfolio completed on 28 August 2023 of EUR 72.6 million and
the EUR 144.5 million of De-SPAC related expenses incurred in 2022, but not
present in 2023.
Adjusted EBITDA was EUR 71.4 million for FY 2023 compared to EUR 52.1 million for FY
2022, an increase of 37.0%, mainly due to increased contribution to advertising
revenue from Direct sales, continued integration of previous acquisitions and
ongoing cost optimisation, partly offset by the loss of earnings due to the sale
of the social card games portfolio.
Cash flow
Cash flow from operating activities in Q4 2023 was an inflow of approximately EUR
35.5 million, mainly due to movements in net working capital, reflecting an
increase in trade and other payables of EUR 30.4 million and increase in trade and
other receivables of EUR (6.5) million. Cash flow from investing activities for
the period was an outflow of EUR (19.5) million, mainly due to cash outflow on
past acquisitions of subsidiaries including Hawk in the amount of EUR (15.7)
million and payments for intangibles of EUR (3.7) million. Cash flow from
financing activities in the period amounted to an outflow of EUR (45.4) million,
mainly relating to bond refinancing.
Cash flow from operating activities for FY 2023 was an inflow of EUR 54.4 million,
mainly due to movements in net working capital, reflecting a decrease in trade
and other receivables of EUR 12.1 million and increase in trade and other payables
EUR 20.2 million. Cash flow from investing activities was an outflow of EUR (10.2)
million, mainly due to deferred payments and earn-outs relating to past
acquisitions including Hawk of EUR (48.8) million and payments for intangibles of
EUR (23.3) million, offset in part by EUR 66.0 million of proceeds from the sale of
the social card games portfolio. Cash flow from financing activities totalled an
outflow of EUR (55.4) million, mainly relating to the bond refinancing.
Capex
Azerion capitalises 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 the platform, games and
other new features. In Q4 2023 Azerion capitalised EUR 3.4 million, equivalent to
12.4% (2022: 15.8%) of gross personnel costs excluding restructuring provision
expense. For FY 2023 Azerion capitalised EUR 17.5 million, equivalent to 16.2%
(2022: 16.3%) of gross personnel costs excluding restructuring provision
expense.
Financial position and borrowing
Net interest bearing debt(*)) amounted to EUR 145.1 million as at 31 December
2023, mainly comprising the outstanding bond loan with a nominal value of EUR 165
million (part of a total EUR 300 million framework) and lease liabilities with a
balance of EUR 14.3 million less the cash and cash equivalents position of EUR 39.9
million. The Net interest bearing debt position as at 31 December 2023 implies a
Net interest bearing debt / Adjusted EBITDA ratio as at 31 December 2023 of
approximately 2x and a YoY reduction in Net Interest Bearing Debt of 18.3%
compared to EUR 177.6 million as at 31 December 2022.
(*))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, e-commerce,
the operation and distribution of casual games and Fanzone. It generates Net
revenue mainly by displaying digital advertisements in both game and general
content, as well as selling and distributing AAA games through our e-commerce
channels. 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.
Platform - Selected Financial KPIs
Financial results - Platform
in millions of EUR
+---------------------------+-------+-------+-------+-------+
| | Q4 | Q4 | FY | FY |
+---------------------------+-------+-------+-------+-------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+-------+-------+
| Net revenue | 157.8 | 124.7 | 437.4 | 363.5 |
+---------------------------+-------+-------+-------+-------+
| Operating profit / (loss) | 6.2 | 8.0 | (1.3) | (6.8) |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA | 22.3 | 17.7 | 52.7 | 34.8 |
+---------------------------+-------+-------+-------+-------+
| Net revenue growth % | 26.5% | | 20.3% | |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA growth % | 26.0% | | 51.4% | |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA margin % | 14.1% | 14.2% | 12.0% | 9.6% |
+---------------------------+-------+-------+-------+-------+
Net revenue of EUR 157.8 million in Q4 2023, compared to EUR 124.7 million in Q4
2022, an increase of 26.5%, driven mainly by increased contribution from Direct
sales, sales opportunities created through the integration of past acquisitions
and global sales teams, combined with additional revenue from Hawk and increased
sales of game keys from our e-commerce platform. In Q4 2023, Azerion's Direct
sales teams contributed approximately 75% of Platform advertising Net revenue,
as compared to approximately 65% in Q4 2022, with the balance provided by
Automated auction sales. In Q4 2023, our e-commerce business generated Net
revenue of EUR 31.7 million as compared to EUR 22.1 million in Q4 2022, an increase
of approximately 43.4% YoY, largely driven by an increase in the number of AAA
publisher partners and popular title releases. In Q4 2023, our e-commerce Net
revenue represented approximately 20.1% of total Platform Net revenue, as
compared to approximately 17.7% in Q4 2022.
Net revenue of EUR 437.4 million for FY 2023 , compared to EUR 363.5 million for FY
2022, an increase of 20.3%, driven mainly by increased contribution from Direct
sales, integration of past acquisitions and global sales teams, combined with
the roll out of new ad formats on the Platform throughout the year, the addition
of Hawk and increased sales of game keys by the e-commerce platform in the
fourth quarter. For the FY 2023, Advertising revenue contributed around 80% of
Platform segment Net Revenue, with the e-commerce business representing the
remaining balance. For FY 2023, Azerion's Direct sales teams contributed
approximately 70% of Platform advertising Net revenue, as compared to
approximately 60% for FY 2022, with the balance provided by Automated auction
sales. For the full-year 2023, our e-commerce business generated Net Revenue of
EUR 88.8 million as compared to EUR 68.3 million for FY 2022, an increase of
approximately 30.0% YoY, largely driven by an increase in the number of AAA
publisher partners and popular title releases. In FY 2023, our e-commerce Net
revenue represented approximately 20.3% of total Platform Net revenue, as
compared to approximately 18.8% in Q4 2022.
Adjusted EBITDA of EUR 22.3 million in Q4 2023, compared to EUR 17.7 million in Q4
2022, an increase of 26.0% 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. These effects were partly offset by the integration of lower
margin revenue from Hawk, which operates a managed and self-service DSP for
advertiser campaigns, whilst our e-commerce platforms saw a seasonal increase in
revenue during Thanksgiving and Christmas promotions.
Adjusted EBITDA of EUR 52.7 million for FY 2023, compared to EUR 34.8 million for FY
2022, an increase of more than 51.4%, mainly as a result of higher Direct sales
and ongoing consolidation and integration of previously acquired businesses and
cost optimisation.
Selected business initiatives in Q4 2023 include:
Advertising - Selected Operational KPIs
Advertising - Operational KPIs
+--------------------------------------+-------+-------+-------+-------+-------+
| |Q4 2022|Q1 2023|Q2 2023|Q3 2023|Q4 2023| +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Digital Ads Sold per Month (bn) |10.7 |12.2 |13.0 |12.2 |12.9 | +--------------------------------------+-------+-------+-------+-------+-------+
|Advertising auction platform (bn) |5.4 |5.1 |6.1 |5.4 |6.2 | +--------------------------------------+-------+-------+-------+-------+-------+
|Publisher monetisation services (bn) |5.3 |7.1 |6.9 |6.8 |6.7 | +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Gross Revenue per Million | | | | | | |Processed Ad Requests from advertising|32.8 |30.0 |36.3 |30.4 |39.5 | |auction platform (EUR) | | | | | |
+--------------------------------------+-------+-------+-------+-------+-------+
The Average Digital Ads Sold per Month increased to 12.9 billion from 10.7
billion in Q4 2022, reflecting the growth of the Platform business through
increased ad format offerings and the integration of previous acquisitions. As
of Q1 2023 the reported number of average digital ads sold per month include the
following previous acquisitions: Adplay, Adverline, Madvertise, Hybrid Theory,
MMedia, Takerate, Targetspot and Vlyby.
The Average Gross Revenue per Million Processed Ad Requests was EUR 39.5 in Q4
2023, compared to EUR 32.8 in Q4 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.
Additional new ad formats have been included as of Q1 2023, these include
Adplay, Adverline, Madvertise, Hybrid Theory, MMedia, Takerate, Targetspot and
Vlyby. The non-financial performance of the recent Hawk acquisition is not
included in the table above.
Premium Games Segment
As of 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.
Premium Games - Selected Financial KPIs
Financial results - Premium Games
in millions of EUR
+------------------------------------------+-------+-----+-------+-----+
| |Q4 |Q4 |FY |FY |
+------------------------------------------+-------+-----+-------+-----+
| |2023 |2022 |2023 |2022 |
+------------------------------------------+-------+-----+-------+-----+
|Net revenue |14.0 |24.1 |77.6 |89.1 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio |- |10.2 |28.3 |37.1 |
+------------------------------------------+-------+-----+-------+-----+
|Operating profit / (loss)(1)) |0.6 |1.3 |74.8 |2.4 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio(1)())|- |2.2 |80.6 |9.8 |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA |3.6 |4.4 |18.7 |17.3 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio |- |2.6 |9.7 |11.7 |
+------------------------------------------+-------+-----+-------+-----+
|Net revenue growth % |(41.9)%| |(12.9)%| |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA growth % |(18.2)%| |8.1% | |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA margin % |25.7% |18.3%|24.1% |19.4%|
+------------------------------------------+-------+-----+-------+-----+
(1))The operating profit of Premium Games and social card games portfolio
includes the net gain from the sale of the social card games portfolio for EUR
72.6 million.
Net revenue of EUR 14.0 million in Q4 2023, as compared to EUR 24.1 million in Q4
2022, a decrease of (41.9)%, mainly due to the revenue loss from the sale of our
social card games portfolio. The Net revenue of the remaining Premium Games
titles across our social casino and metaverse portfolios showed a small increase
in Q4 2023 at EUR 14.0 million, compared to EUR 13.9 million in Q4 2022.
Net revenue of EUR 77.6 million for FY 2023, compared to EUR 89.1 million for FY
2022, a decrease of (12.9)% predominantly due to the loss of revenue from the
sale of our social card games portfolio. On a like-for-like basis, the Net
revenue of our social casino and metaverse portfolios was approximately EUR 49.3
million compared to EUR 52.0 million for the full year 2022, a decrease of
approximately (5.2)%, mainly driven by lower revenue in our metaverse
environments.
Adjusted EBITDA of EUR 3.6 million in Q4 2023, compared to EUR 4.4 million in Q4
2022, a decrease of (18.2)%, mainly due to the loss of contribution following
the sale of the social card games portfolio. The Adjusted EBITDA of the
remaining Premium Games titles across our social casino and metaverse portfolios
doubled from EUR 1.8 million in Q4 2022 to EUR 3.6 million in Q4 2023, driven by
improved performance in the social casino portfolio and revenue growth from
Habbo Hotel due to improved engagement with previous higher spending users and
cost optimisation across the segment.
Adjusted EBITDA of EUR 18.7 million for FY 2023, compared to EUR 17.3 million for FY
2022, an increase of 8.1% mainly due to improved performance in both the social
cards and social casino portfolios and cost optimisation across the segment
combined with improved profitability in metaverse titles, more than offsetting
the contribution lost in Q4 2023 from the sale of our social card games
portfolio in Q3 2023. On a like-for-like basis, the Adjusted EBITDA of the
remaining Premium Games titles across our social casino and metaverse portfolios
was EUR 9.0 million for FY 2023, as compared to EUR 5.6 million for FY 2022, an
increase of approximately 60.7% mainly driven by improved performance in the
social casino portfolio and cost optimisation across the segment.
Selected Q4 2023 business highlights
Premium Games - Selected Operational KPIs
Premium Games - Operational KPIs+-------------------------------+-------+-------+-------+-------+-------+
| |Q4 2022|Q1 2023|Q2 2023|Q3 2023|Q4 2023|
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. Time in Game per Day (min)|79 |84 |84 |79 |94 |
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. DAUs (thousands) |559 |601 |558 |454 |267 |
+-------------------------------+-------+-------+-------+-------+-------+
|ARPDAU (EUR) |0.45 |0.42 |0.42 |0.44 |0.46 |
+-------------------------------+-------+-------+-------+-------+-------+
* The Average Time in Game per Day (min) increased by 19% in Q4 2023 to 94
minutes per day as compared to Q4 2022. This increase was largely due to the
* The Average Daily Active Users (DAUs) decreased by (52)% in Q4 2023 compared
As from 28 August 2023, the selected operational KPIs no longer contain results
from the social card games portfolio following its divestment.
Outlook
Net revenue for FY 2024 is expected to be in the range of approximately EUR 540
million to EUR 560 million, with annual growth thereafter in the medium term
expected to be approximately 10%.
Adjusted EBITDA for FY 2024 is expected to be in the range of approximately EUR
75 million to EUR 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
Interest Bearing Debt
Interest Bearing Debt
in millions of EUR
+----------------------------------------+------------------+------------------+
| | 31 December 2023 | 31 December 2022 | +----------------------------------------+------------------+------------------+
| Total non-current indebtedness | 172.0 | 215.8 | +----------------------------------------+------------------+------------------+
| Total current indebtedness | 13.0 | 12.8 | +----------------------------------------+------------------+------------------+
| Total financial indebtedness | 185.0 | 228.6 | +----------------------------------------+------------------+------------------+
| Deduct Zero interest bearing loans | - | (0.1) | +----------------------------------------+------------------+------------------+
| Interest Bearing Debt | 185.0 | 228.5 | +----------------------------------------+------------------+------------------+
| Less: Cash and cash equivalents | (39.9) | (50.9) | +----------------------------------------+------------------+------------------+
| Net Interest Bearing Debt (Bond terms) | 145.1 | 177.6 | +----------------------------------------+------------------+------------------+
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 - Q4
in millions of EUR
+--------------+---------------------------------------------------------------+
| |Q4 | +--------------+--------------------------------+------------------------------+
| |2023 |2022 | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
| |Azerion |Premium |Platform|Other|Azerion|Premium|Platform|Other| | |Group |Games | | |Group |Games | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Profit / | | | | | | | | | |(loss) for the|3.4 | | | |16.9 | | | | |period | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Income Tax |(3.3) | | | |(9.4) | | | | |expense | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Profit / | | | | | | | | | |(loss) before |0.1 | | | |7.5 | | | | |tax | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Net finance |6.7 | | | |1.3 | | | | |costs | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Operating | | | | | | | | | |profit / |6.8 |0.6 |6.2 |- |8.8 |1.3 |8.0 |(0.5)| |(loss) | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Depreciation, | | | | | | | | | |amortisation |12.7 |3.2 |9.5 |- |12.2 |3.3 |8.7 |0.2 | |and impairment| | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|De-SPAC | | | | | | | | | |related |- |- |- |- |(0.3) |0.1 |0.2 |(0.6)| |expenses | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Other |1.7 |(0.2) |1.9 |- |(1.7) |(0.4) |(1.3) |- | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Acquisition |3.9 |(0.1) |4.0 |- |2.7 |- |1.7 |1.0 | |expenses | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Restructuring |0.8 |0.1 |0.7 |- |0.4 |0.1 |0.4 |(0.1)| +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Adjusted |25.9 |3.6 |22.3 |- |22.1 |4.4 |17.7 |- | |EBITDA | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
Reconciliation of net income to Adjusted EBITDA - FY
in millions of EUR
+--------------+---------------------------------------------------------------+
| |FY | +--------------+------------------------------+--------------------------------+
| |2023 |2022 | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
| |Azerion|Premium|Platform|Other|Azerion|Premium|Platform|Other | | |Group |Games | | |Group |Games | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Profit / | | | | | | | | | |(loss) for the|35.7 | | | |(133.1)| | | | |period | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Income Tax |18.1 | | | |(7.0) | | | | |expense | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Profit / | | | | | | | | | |(loss) before |53.8 | | | |(140.1)| | | | |tax | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Net finance |19.7 | | | |1.1 | | | | |costs | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Operating | | | | | | | | | |profit / |73.5 |74.8 |(1.3) |- |(139.0)|2.4 |(6.8) |(134.6)| |(loss) | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Depreciation, | | | | | | | | | |amortisation |45.2 |12.8 |32.4 |- |38.5 |11.9 |26.4 |0.2 | |and impairment| | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|De-SPAC | | | | | | | | | |related |- |- |- |- |144.5 |2.5 |9.6 |132.4 | |expenses | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Other(1)) |(69.4) |(71.8) |2.4 |- |(0.6) |- |(1.5) |0.9 | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Acquisition |14.4 |1.1 |13.3 |- |6.9 |0.2 |5.5 |1.2 | |expenses | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Restructuring |7.7 |1.8 |5.9 |- |1.8 |0.3 |1.6 |(0.1) | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Adjusted |71.4 |18.7 |52.7 |- |52.1 |17.3 |34.8 |- | |EBITDA | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
(1))Other mainly includes the net gain from the sale of the social card games
portfolio for EUR 72.6 million.
Operating expenses
Breakdown of Operating expenses
in millions of EUR
+------------------------------------------------+-------------+---------------+
| |Q4 |FY | | +------+------+-------+-------+ | |2023 |2022 |2023 |2022 | +------------------------------------------------+------+------+-------+-------+
|Personnel costs |(24.9)|(23.9)|(98.5) |(107.2)| +------------------------------------------------+------+------+-------+-------+
|Includes: | | | | | +------------------------------------------------+------+------+-------+-------+
|Restructuring related expenses |(0.8) |(0.4) |(7.7) |(1.8) | +------------------------------------------------+------+------+-------+-------+
|Azerion Founder Warrants, reported as share- |- |- |- |(9.9) | |based payment expense | | | | | +------------------------------------------------+------+------+-------+-------+
|De-SPAC early exercised share-based payment |- |- |- |(10.3) | |expense | | | | | +------------------------------------------------+------+------+-------+-------+
|Other expenses |(8.7) |(11.0)|(37.3) |(161.0)| +------------------------------------------------+------+------+-------+-------+
|Includes: | | | | | +------------------------------------------------+------+------+-------+-------+
|De-SPAC transaction related expenses | | | |(121.4)| +------------------------------------------------+------+------+-------+-------+
|Operating expenses |(33.6)|(34.9)|(135.8)|(268.2)| +------------------------------------------------+------+------+-------+-------+
|Of which: | | | | | +------------------------------------------------+------+------+-------+-------+
|Platform |(30.6)|(27.1)|(111.9)|(104.0)| +------------------------------------------------+------+------+-------+-------+
|Premium Games |(2.6) |(7.5) |(23.8) |(30.6) | +------------------------------------------------+------+------+-------+-------+
Restructuring
In relation to ongoing consolidation and integration, restructuring charges in
Q1 and Q2 2024 are expected in total to be in the range of approximately EUR 1.0
million to EUR 1.5 million. These costs impact the reported operating profit /
loss, but are removed from Adjusted EBITDA.
Bond Refinancing
On 31 October 2023, Azerion successfully completed the refinancing of its then
outstanding senior secured fixed rate bonds maturing in April 2024 with ISIN
SE0015837794. Following a book-building process, Azerion successfully placed EUR
165 million of senior secured floating rate bonds under a framework of EUR 300
million to qualified institutional investors internationally (the "New Bonds").
The New Bonds have a 3-year tenor, carry a floating rate coupon of 3 months
EURIBOR plus 6.75 per cent per annum and were issued at 98.5 per cent of par.
The Company applied for listing of the New Bonds with ISIN NO0013017657 on the
Corporate Bond List of Nasdaq Stockholm, with the Bonds being admitted to
trading on 13 December 2023.
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
+-----------------------------------------------+--------------+---------------+
| |Q4 |FY | +-----------------------------------------------+-------+------+-------+-------+
| |2023 |2022 |2023 |2022 | +-----------------------------------------------+-------+------+-------+-------+
|Net revenue |171.8 |148.8 |515.0 |452.6 | +-----------------------------------------------+-------+------+-------+-------+
|Costs of services and materials |(118.4)|(95.7)|(332.8)|(286.3)| +-----------------------------------------------+-------+------+-------+-------+
|Personnel costs |(24.9) |(23.9)|(98.5) |(107.2)| +-----------------------------------------------+-------+------+-------+-------+
|Depreciation |(2.2) |(2.1) |(8.1) |(7.0) | +-----------------------------------------------+-------+------+-------+-------+
|Amortisation |(10.5) |(9.6) |(37.1) |(31.0) | +-----------------------------------------------+-------+------+-------+-------+
|Impairment of non-current assets |- |(0.5) |- |(0.5) | +-----------------------------------------------+-------+------+-------+-------+
|Other gains and losses |(0.3) |2.8 |72.3 |1.4 | +-----------------------------------------------+-------+------+-------+-------+
|Other expenses |(8.7) |(11.0)|(37.3) |(161.0)| +-----------------------------------------------+-------+------+-------+-------+
|Operating profit / (loss) |6.8 |8.8 |73.5 |(139.0)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Finance income |8.7 |5.1 |16.2 |22.3 | +-----------------------------------------------+-------+------+-------+-------+
|Finance costs |(15.4) |(6.4) |(35.9) |(23.4) | +-----------------------------------------------+-------+------+-------+-------+
|Net Finance costs |(6.7) |(1.3) |(19.7) |(1.1) | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Profit / (loss) before tax |0.1 |7.5 |53.8 |(140.1)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Income tax expense |3.3 |9.4 |(18.1) |7.0 | +-----------------------------------------------+-------+------+-------+-------+
|Profit / (loss) for the period |3.4 |16.9 |35.7 |(133.1)| +-----------------------------------------------+-------+------+-------+-------+
|Attributable to: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Owners of the company |2.7 |15.5 |34.3 |(134.3)| +-----------------------------------------------+-------+------+-------+-------+
|Non-controlling interest |0.7 |1.4 |1.4 |1.2 | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Exchange difference on translation of foreign |(0.3) |(1.3) |(0.6) |(2.6) | |operations | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Total other comprehensive income |(0.3) |(1.3) |(0.6) |(2.6) | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Total comprehensive income/(loss) |3.1 |15.6 |35.1 |(135.7)| +-----------------------------------------------+-------+------+-------+-------+
|Attributable to: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Owners of the company |2.4 |14.9 |33.7 |(135.5)| +-----------------------------------------------+-------+------+-------+-------+
|Non-controlling interest |0.7 |0.7 |1.4 |(0.2) | +-----------------------------------------------+-------+------+-------+-------+
Condensed consolidated statement of financial position
Condensed consolidated statement of financial position
in millions of EUR
+-----------------------------------------+----------------+----------------+
| |31 December 2023|31 December 2022|
+-----------------------------------------+----------------+----------------+
|Assets | | |
+-----------------------------------------+----------------+----------------+
|Non-current assets |454.0 |429.3 |
+-----------------------------------------+----------------+----------------+
|Goodwill |187.1 |184.2 |
+-----------------------------------------+----------------+----------------+
|Intangible assets |176.1 |186.2 |
+-----------------------------------------+----------------+----------------+
|Property, plant and equipment |17.0 |20.5 |
+-----------------------------------------+----------------+----------------+
|Non-current financial assets |61.4 |36.8 |
+-----------------------------------------+----------------+----------------+
|Deferred tax asset |12.3 |1.5 |
+-----------------------------------------+----------------+----------------+
|Investment in joint venture and associate|0.1 |0.1 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Current assets |201.4 |209.2 |
+-----------------------------------------+----------------+----------------+
|Trade and other receivables |160.1 |157.3 |
+-----------------------------------------+----------------+----------------+
|Current tax assets |1.4 |1.0 |
+-----------------------------------------+----------------+----------------+
|Cash and cash equivalents |39.9 |50.9 |
+-----------------------------------------+----------------+----------------+
|Total assets |655.4 |638.5 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Equity | | |
+-----------------------------------------+----------------+----------------+
|Share capital |1.2 |1.2 |
+-----------------------------------------+----------------+----------------+
|Share premium |140.2 |130.8 |
+-----------------------------------------+----------------+----------------+
|Treasury shares |- |- |
+-----------------------------------------+----------------+----------------+
|Legal reserve |27.7 |25.2 |
+-----------------------------------------+----------------+----------------+
|Share based payment reserve |12.7 |13.7 |
+-----------------------------------------+----------------+----------------+
|Currency translation reserve |(2.0) |(1.3) |
+-----------------------------------------+----------------+----------------+
|Other equity instruments |- |29.0 |
+-----------------------------------------+----------------+----------------+
|Retained earnings |(75.0) |(104.8) |
+-----------------------------------------+----------------+----------------+
|Shareholders' equity |104.8 |93.8 |
+-----------------------------------------+----------------+----------------+
|Non-controlling interest |6.0 |2.4 |
+-----------------------------------------+----------------+----------------+
|Total equity |110.8 |96.2 |
+-----------------------------------------+----------------+----------------+
| | ||
+-----------------------------------------+----------------+----------------+
|Liabilities | | |
+-----------------------------------------+----------------+----------------+
|Non-current liabilities |230.2 |257.7 |
+-----------------------------------------+----------------+----------------+
|Borrowings |161.9 |201.5 |
+-----------------------------------------+----------------+----------------+
|Lease liabilities |10.1 |14.3 |
+-----------------------------------------+----------------+----------------+
|Provisions |1.6 |1.6 |
+-----------------------------------------+----------------+----------------+
|Deferred tax liability |40.0 |25.3 |
+-----------------------------------------+----------------+----------------+
|Other non-current liability |16.6 |15.0 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Current liabilities |314.4 |284.6 |
+-----------------------------------------+----------------+----------------+
|Borrowings |8.8 |7.9 |
+-----------------------------------------+----------------+----------------+
|Provisions |2.3 |0.9 |
+-----------------------------------------+----------------+----------------+
|Trade payables (1)) |141.0 |111.9 |
+-----------------------------------------+----------------+----------------+
|Accrued liabilities(1)) |112.2 |103.7 |
+-----------------------------------------+----------------+----------------+
|Current tax liabilities |13.4 |5.4 |
+-----------------------------------------+----------------+----------------+
|Lease liabilities |4.2 |4.9 |
+-----------------------------------------+----------------+----------------+
|Other current liabilities(1)) |32.5 |49.9 |
+-----------------------------------------+----------------+----------------+
|Total liabilities |544.6 |542.3 |
+-----------------------------------------+----------------+----------------+
|Total equity and liabilities |655.4 |638.5 |
+-----------------------------------------+----------------+----------------+
(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 EUR
+-----------------------------------------------+-------+------+-------+-------+
| |2023 |2022 |2023 |2022 | +-----------------------------------------------+-------+------+-------+-------+
| |Q4 |Q4 |FY |FY | +-----------------------------------------------+-------+------+-------+-------+
|Operating profit / (loss) |6.8 |8.8 |73.5 |(139.0)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Adjustments for: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Depreciation and amortisation |12.7 |11.7 |45.2 |38.0 | +-----------------------------------------------+-------+------+-------+-------+
|Impairment of tangible & intangible assets |- |0.5 |- |0.5 | +-----------------------------------------------+-------+------+-------+-------+
|Movements in provisions per profit and loss |0.9 |1.2 |8.8 |3.0 | +-----------------------------------------------+-------+------+-------+-------+
|Gain on sale of social card game portfolio |- |- |(72.6) |- | +-----------------------------------------------+-------+------+-------+-------+
|Loss on sale of subsidiaries |0.1 |- |0.1 |- | +-----------------------------------------------+-------+------+-------+-------+
|Share-based payments expense |0.1 |(0.2) |0.8 |22.7 | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC related expenses |- |0.2 |- |14.8 | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC listing expense |- |- |- |107.1 | +-----------------------------------------------+-------+------+-------+-------+
|Other non-cash items |- |- |(2.9) |- | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Changes in working capital items: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|(Increase) / Decrease in trade and other |(6.5) |(20.5)|12.1 |(22.1) | |receivables | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Increase / (Decrease) in trade and other |30.4 |26.8 |20.2 |43.1 | |payables | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Utilisation of provisions |(3.1) |(1.5) |(9.9) |(3.1) | +-----------------------------------------------+-------+------+-------+-------+
|Interest paid |(3.2) |(4.7) |(17.2) |(18.7) | +-----------------------------------------------+-------+------+-------+-------+
|Income tax paid |(2.7) |(0.2) |(3.7) |(1.4) | +-----------------------------------------------+-------+------+-------+-------+
|Net cash provided by / (used for) operating |35.5 |22.1 |54.4 |44.9 | |activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Cash flows from investing activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Net proceeds from sale of business |- |- |66.0 |- | +-----------------------------------------------+-------+------+-------+-------+
|Payments for property, plant and equipment |(0.1) |(0.1) |(1.5) |(1.5) | +-----------------------------------------------+-------+------+-------+-------+
|Payments for intangibles |(3.7) |(6.0) |(23.3) |(20.2) | +-----------------------------------------------+-------+------+-------+-------+
|Net cash outflow on acquisition of subsidiaries|(15.7) |(8.7) |(48.8) |(54.1) |
+-----------------------------------------------+-------+------+-------+-------+
|Net cash outflow on acquisition of securities |- |- |(2.6) |- | |and equity investments | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Net cash provided by / (used for) investing |(19.5) |(14.8)|(10.2) |(75.8) | |activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Cash flows from financing activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Proceeds from external borrowings |162.6 |0.5 |163.1 |0.5 | +-----------------------------------------------+-------+------+-------+-------+
|Repayment of external borrowings |(200.7)|(3.0) |(204.3)|(5.0) | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC related expenses |- |(0.3) |- |(33.7) | +-----------------------------------------------+-------+------+-------+-------+
|Payment of principal portion of lease |(1.8) |(2.4) |(6.8) |(7.6) | |liabilities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Early cancellation of lease liability |- |- |(1.5) |- | +-----------------------------------------------+-----
Highlights of Q4 2023
* Net revenue of EUR 171.8 million, up 15.5% from EUR 148.8 million in Q4 2022,
mainly driven by Platform Segment growth, particularly in advertising
revenue from Direct sales, e-commerce and previous acquisitions including
Hawk.
* Adjusted EBITDA of EUR 25.9 million, up 17.2% from EUR 22.1 million in Q4 2022
with margins improved due to increased Platform Segment revenue and
contribution from Direct sales, continued integration of previous
acquisitions and ongoing cost optimisation.
* Platform segment Adjusted EBITDA, of EUR 22.3 million, up 26.0% compared to EUR
17.7 million in Q4 2022, reflecting increased Net revenue and Platform
efficiencies from optimisation and consolidation efforts.
* Increased the average digital ads sold per month by over 20% to
approximately 12.9 billion in Q4 2023, up from approximately 10.7 billion in
Q4 2022, driven by the integration of past acquisitions and the increased
cross-selling of ad formats in managed campaigns.
* Higher Average Gross Revenue per Million Processed Ad Requests from the
advertising auction platform, of approximately EUR 39.5 in Q4 2023, up from EUR
32.8 in Q4 2022, an increase of approximately 20.4% reflecting the
integration of higher CPM ad formats such as Digital-Out-Of-Home (DOOH),
audio and rich media on Azerion's platform.
* Signed 39 new publishers to expand Azerion's supply footprint across Europe
and the Americas adding new CTV, Audio and inApp audiences and 5 new Demand
Partners creating new monetisation opportunities for our publisher partners.
* Fully integrated Hybrid Theory's contextual segments into Azerion's SSP
Improve Digital, improving publisher inventory synergies for advertisers
through enhanced audience targeting in an increasingly cookieless world.
* Acquired Hawk, a DSP, SAAS and managed services advertising platform
bringing new advertisers whilst strengthening Azerion's DOOH, audio,
Connected TV (CTV) and hyperlocal proposition.
* Completed the refinancing of previously outstanding senior secured callable
fixed rate bonds, reducing Net Interest Bearing Debt(*)())by over 18% as at
31 December 2023 compared to 31 December 2022.
Highlights Full Year 2023
* Net revenue of EUR 515.0 million FY 2023, up 13.8% from EUR 452.6 million FY
2022 mainly driven by Platform Segment growth, particularly in advertising
revenue from Direct sales, and the integration of previous acquisitions,
notwithstanding the loss of revenue from the divested portfolio of social
card games.
* Adjusted EBITDA of EUR 71.4 million FY 2023, up 37.0% from EUR 52.1 million FY
2022 reflecting improved margins due to increased Platform revenue and
contribution from Direct sales and platform efficiencies from optimisation
and consolidation efforts.
* Delivered expected annualised cost savings of at least EUR 20 million,
excluding any effects from foreign exchange and the Hawk acquisition, as
compared to the January 2023 baseline.
(*))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.
Selected KPIs
Financial results - Azerion Group N.V.
in millions of EUR
+---------------------------+-------+-------+-------+---------+
| | Q4 | Q4 | FY | FY |
+---------------------------+-------+-------+-------+---------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+-------+---------+
| Net revenue | 171.8 | 148.8 | 515.0 | 452.6 |
+---------------------------+-------+-------+-------+---------+
| Operating profit / (loss) | 6.8 | 8.8 | 73.5 | (139.0) |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA | 25.9 | 22.1 | 71.4 | 52.1 |
+---------------------------+-------+-------+-------+---------+
| Net revenue growth % | 15.5% | | 13.8% | |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA growth % | 17.2% | | 37.0% | |
+---------------------------+-------+-------+-------+---------+
| Adjusted EBITDA margin % | 15.1% | 14.9% | 13.9% | 11.5% |
+---------------------------+-------+-------+-------+---------+
Message from the CEO
"I am proud of our achievements in 2023. While navigating a challenging market,
we successfully delivered solid top line and Adjusted EBITDA growth and created
further value for all our stakeholders. The integration and consolidation of
past acquisitions allowed us to improve margins and drive substantial cost
savings, while we also strengthened our balance sheet through the strategic sale
of our social cards portfolio. Through these initiatives, we have continued to
build the technological, financial and operational foundations to scale our
business further in the coming years.
Looking ahead to 2024, we see momentum building up in our business, with both
demand and publisher partners showing real potential for accelerating our growth
through Azerion's digital advertising platform. The ongoing consolidation of the
European market also offers exciting opportunities to expand our business,
leveraging the scale benefits associated with our advertising platform, both
through organic market share gains as well as via potential partnerships and
acquisitions."
- Umut Akpinar
Financial overview
Net revenue
Net revenue for the quarter amounted to EUR 171.8 million compared to EUR 148.8
million in Q4 2022, an increase of approximately 15.5%. The increase in Net
Revenue year on year came mainly from growth in the Platform segment of
approximately EUR 33.1 million, driven largely by advertising revenue from Direct
sales and the integration of previous acquisitions, offset by a reduction in Net
Revenue in Premium Games due to the sale of the social card games portfolio
completed during Q3 2023, with that portfolio contributing Net revenue of EUR
10.2 million in Q4 2022.
Net revenue FY 2023 amounted to EUR 515.0 million compared to EUR 452.6 million in
FY 2022, an increase of approximately 13.8%, mainly due to Net revenue growth in
the Platform segment between the same periods of approximately EUR 73.9 million,
particularly in advertising revenue from Direct sales and from the integration
of previous acquisitions.
Earnings
The operating profit for the quarter amounted to EUR 6.8 million, compared to an
operating profit of EUR 8.8 million in Q4 2022, with the reduction mainly
explained by the loss of earnings due to the sale of the social card games
portfolio completed on 28 August 2023.
Adjusted EBITDA was EUR 25.9 million for the quarter compared to EUR 22.1 million in
Q4 2022, an increase of 17.2% due to increased Net revenue from the Platform
segment at higher margins driven by increased contribution to advertising
revenue from Direct sales, continued integration of previous acquisitions and
ongoing cost optimisation, partly offset by the loss of earnings due to the sale
of the social card games portfolio.
The operating profit for FY 2023 amounted to EUR 73.5 million, compared to a loss
of EUR (139.0) million for FY 2022 mainly explained by the gain on the sale of the
social card games portfolio completed on 28 August 2023 of EUR 72.6 million and
the EUR 144.5 million of De-SPAC related expenses incurred in 2022, but not
present in 2023.
Adjusted EBITDA was EUR 71.4 million for FY 2023 compared to EUR 52.1 million for FY
2022, an increase of 37.0%, mainly due to increased contribution to advertising
revenue from Direct sales, continued integration of previous acquisitions and
ongoing cost optimisation, partly offset by the loss of earnings due to the sale
of the social card games portfolio.
Cash flow
Cash flow from operating activities in Q4 2023 was an inflow of approximately EUR
35.5 million, mainly due to movements in net working capital, reflecting an
increase in trade and other payables of EUR 30.4 million and increase in trade and
other receivables of EUR (6.5) million. Cash flow from investing activities for
the period was an outflow of EUR (19.5) million, mainly due to cash outflow on
past acquisitions of subsidiaries including Hawk in the amount of EUR (15.7)
million and payments for intangibles of EUR (3.7) million. Cash flow from
financing activities in the period amounted to an outflow of EUR (45.4) million,
mainly relating to bond refinancing.
Cash flow from operating activities for FY 2023 was an inflow of EUR 54.4 million,
mainly due to movements in net working capital, reflecting a decrease in trade
and other receivables of EUR 12.1 million and increase in trade and other payables
EUR 20.2 million. Cash flow from investing activities was an outflow of EUR (10.2)
million, mainly due to deferred payments and earn-outs relating to past
acquisitions including Hawk of EUR (48.8) million and payments for intangibles of
EUR (23.3) million, offset in part by EUR 66.0 million of proceeds from the sale of
the social card games portfolio. Cash flow from financing activities totalled an
outflow of EUR (55.4) million, mainly relating to the bond refinancing.
Capex
Azerion capitalises 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 the platform, games and
other new features. In Q4 2023 Azerion capitalised EUR 3.4 million, equivalent to
12.4% (2022: 15.8%) of gross personnel costs excluding restructuring provision
expense. For FY 2023 Azerion capitalised EUR 17.5 million, equivalent to 16.2%
(2022: 16.3%) of gross personnel costs excluding restructuring provision
expense.
Financial position and borrowing
Net interest bearing debt(*)) amounted to EUR 145.1 million as at 31 December
2023, mainly comprising the outstanding bond loan with a nominal value of EUR 165
million (part of a total EUR 300 million framework) and lease liabilities with a
balance of EUR 14.3 million less the cash and cash equivalents position of EUR 39.9
million. The Net interest bearing debt position as at 31 December 2023 implies a
Net interest bearing debt / Adjusted EBITDA ratio as at 31 December 2023 of
approximately 2x and a YoY reduction in Net Interest Bearing Debt of 18.3%
compared to EUR 177.6 million as at 31 December 2022.
(*))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, e-commerce,
the operation and distribution of casual games and Fanzone. It generates Net
revenue mainly by displaying digital advertisements in both game and general
content, as well as selling and distributing AAA games through our e-commerce
channels. 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.
Platform - Selected Financial KPIs
Financial results - Platform
in millions of EUR
+---------------------------+-------+-------+-------+-------+
| | Q4 | Q4 | FY | FY |
+---------------------------+-------+-------+-------+-------+
| | 2023 | 2022 | 2023 | 2022 |
+---------------------------+-------+-------+-------+-------+
| Net revenue | 157.8 | 124.7 | 437.4 | 363.5 |
+---------------------------+-------+-------+-------+-------+
| Operating profit / (loss) | 6.2 | 8.0 | (1.3) | (6.8) |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA | 22.3 | 17.7 | 52.7 | 34.8 |
+---------------------------+-------+-------+-------+-------+
| Net revenue growth % | 26.5% | | 20.3% | |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA growth % | 26.0% | | 51.4% | |
+---------------------------+-------+-------+-------+-------+
| Adjusted EBITDA margin % | 14.1% | 14.2% | 12.0% | 9.6% |
+---------------------------+-------+-------+-------+-------+
Net revenue of EUR 157.8 million in Q4 2023, compared to EUR 124.7 million in Q4
2022, an increase of 26.5%, driven mainly by increased contribution from Direct
sales, sales opportunities created through the integration of past acquisitions
and global sales teams, combined with additional revenue from Hawk and increased
sales of game keys from our e-commerce platform. In Q4 2023, Azerion's Direct
sales teams contributed approximately 75% of Platform advertising Net revenue,
as compared to approximately 65% in Q4 2022, with the balance provided by
Automated auction sales. In Q4 2023, our e-commerce business generated Net
revenue of EUR 31.7 million as compared to EUR 22.1 million in Q4 2022, an increase
of approximately 43.4% YoY, largely driven by an increase in the number of AAA
publisher partners and popular title releases. In Q4 2023, our e-commerce Net
revenue represented approximately 20.1% of total Platform Net revenue, as
compared to approximately 17.7% in Q4 2022.
Net revenue of EUR 437.4 million for FY 2023 , compared to EUR 363.5 million for FY
2022, an increase of 20.3%, driven mainly by increased contribution from Direct
sales, integration of past acquisitions and global sales teams, combined with
the roll out of new ad formats on the Platform throughout the year, the addition
of Hawk and increased sales of game keys by the e-commerce platform in the
fourth quarter. For the FY 2023, Advertising revenue contributed around 80% of
Platform segment Net Revenue, with the e-commerce business representing the
remaining balance. For FY 2023, Azerion's Direct sales teams contributed
approximately 70% of Platform advertising Net revenue, as compared to
approximately 60% for FY 2022, with the balance provided by Automated auction
sales. For the full-year 2023, our e-commerce business generated Net Revenue of
EUR 88.8 million as compared to EUR 68.3 million for FY 2022, an increase of
approximately 30.0% YoY, largely driven by an increase in the number of AAA
publisher partners and popular title releases. In FY 2023, our e-commerce Net
revenue represented approximately 20.3% of total Platform Net revenue, as
compared to approximately 18.8% in Q4 2022.
Adjusted EBITDA of EUR 22.3 million in Q4 2023, compared to EUR 17.7 million in Q4
2022, an increase of 26.0% 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. These effects were partly offset by the integration of lower
margin revenue from Hawk, which operates a managed and self-service DSP for
advertiser campaigns, whilst our e-commerce platforms saw a seasonal increase in
revenue during Thanksgiving and Christmas promotions.
Adjusted EBITDA of EUR 52.7 million for FY 2023, compared to EUR 34.8 million for FY
2022, an increase of more than 51.4%, mainly as a result of higher Direct sales
and ongoing consolidation and integration of previously acquired businesses and
cost optimisation.
Selected business initiatives in Q4 2023 include:
* Completed the integration of DACH region operations and the subsequent name
change to Azerion AG.
* Launched Oneskin's rich media advertisement format on mobile devices from
previously acquired businesses Sublime and Inskin Media.
* Introduction to Nordic markets of Azerion's Audio Ad Server, bringing
programmatic audio advertising capabilities to advertisers and agencies in
the region.
* Strategic partnership to deliver a diverse array of casual games to the
Huawei Browser.
* Azerion Fanzone entered an exclusive partnership with EB Sports Group,
providing access to the US and Mexican markets.
* Launched the strategic partnership between Hawk and Samba TV, providing
advertisers and agencies connected to Hawk's platform with access to Samba
TV's Geo Audience data and insights for greater omnichannel targeting
effectiveness for brand exposure and incremental reach.
* Took a minority stake in the youth-focused media house Just Another Media
Company ("JAMC"). JAMC owns various online titles and produces and licenses
ComplexNL, one of the largest platforms targeting millennials and Gen Z
worldwide.
Advertising - Selected Operational KPIs
Advertising - Operational KPIs
+--------------------------------------+-------+-------+-------+-------+-------+
| |Q4 2022|Q1 2023|Q2 2023|Q3 2023|Q4 2023| +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Digital Ads Sold per Month (bn) |10.7 |12.2 |13.0 |12.2 |12.9 | +--------------------------------------+-------+-------+-------+-------+-------+
|Advertising auction platform (bn) |5.4 |5.1 |6.1 |5.4 |6.2 | +--------------------------------------+-------+-------+-------+-------+-------+
|Publisher monetisation services (bn) |5.3 |7.1 |6.9 |6.8 |6.7 | +--------------------------------------+-------+-------+-------+-------+-------+
|Avg. Gross Revenue per Million | | | | | | |Processed Ad Requests from advertising|32.8 |30.0 |36.3 |30.4 |39.5 | |auction platform (EUR) | | | | | |
+--------------------------------------+-------+-------+-------+-------+-------+
The Average Digital Ads Sold per Month increased to 12.9 billion from 10.7
billion in Q4 2022, reflecting the growth of the Platform business through
increased ad format offerings and the integration of previous acquisitions. As
of Q1 2023 the reported number of average digital ads sold per month include the
following previous acquisitions: Adplay, Adverline, Madvertise, Hybrid Theory,
MMedia, Takerate, Targetspot and Vlyby.
The Average Gross Revenue per Million Processed Ad Requests was EUR 39.5 in Q4
2023, compared to EUR 32.8 in Q4 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.
Additional new ad formats have been included as of Q1 2023, these include
Adplay, Adverline, Madvertise, Hybrid Theory, MMedia, Takerate, Targetspot and
Vlyby. The non-financial performance of the recent Hawk acquisition is not
included in the table above.
Premium Games Segment
As of 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.
Premium Games - Selected Financial KPIs
Financial results - Premium Games
in millions of EUR
+------------------------------------------+-------+-----+-------+-----+
| |Q4 |Q4 |FY |FY |
+------------------------------------------+-------+-----+-------+-----+
| |2023 |2022 |2023 |2022 |
+------------------------------------------+-------+-----+-------+-----+
|Net revenue |14.0 |24.1 |77.6 |89.1 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio |- |10.2 |28.3 |37.1 |
+------------------------------------------+-------+-----+-------+-----+
|Operating profit / (loss)(1)) |0.6 |1.3 |74.8 |2.4 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio(1)())|- |2.2 |80.6 |9.8 |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA |3.6 |4.4 |18.7 |17.3 |
+------------------------------------------+-------+-----+-------+-----+
|of which social card games portfolio |- |2.6 |9.7 |11.7 |
+------------------------------------------+-------+-----+-------+-----+
|Net revenue growth % |(41.9)%| |(12.9)%| |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA growth % |(18.2)%| |8.1% | |
+------------------------------------------+-------+-----+-------+-----+
|Adjusted EBITDA margin % |25.7% |18.3%|24.1% |19.4%|
+------------------------------------------+-------+-----+-------+-----+
(1))The operating profit of Premium Games and social card games portfolio
includes the net gain from the sale of the social card games portfolio for EUR
72.6 million.
Net revenue of EUR 14.0 million in Q4 2023, as compared to EUR 24.1 million in Q4
2022, a decrease of (41.9)%, mainly due to the revenue loss from the sale of our
social card games portfolio. The Net revenue of the remaining Premium Games
titles across our social casino and metaverse portfolios showed a small increase
in Q4 2023 at EUR 14.0 million, compared to EUR 13.9 million in Q4 2022.
Net revenue of EUR 77.6 million for FY 2023, compared to EUR 89.1 million for FY
2022, a decrease of (12.9)% predominantly due to the loss of revenue from the
sale of our social card games portfolio. On a like-for-like basis, the Net
revenue of our social casino and metaverse portfolios was approximately EUR 49.3
million compared to EUR 52.0 million for the full year 2022, a decrease of
approximately (5.2)%, mainly driven by lower revenue in our metaverse
environments.
Adjusted EBITDA of EUR 3.6 million in Q4 2023, compared to EUR 4.4 million in Q4
2022, a decrease of (18.2)%, mainly due to the loss of contribution following
the sale of the social card games portfolio. The Adjusted EBITDA of the
remaining Premium Games titles across our social casino and metaverse portfolios
doubled from EUR 1.8 million in Q4 2022 to EUR 3.6 million in Q4 2023, driven by
improved performance in the social casino portfolio and revenue growth from
Habbo Hotel due to improved engagement with previous higher spending users and
cost optimisation across the segment.
Adjusted EBITDA of EUR 18.7 million for FY 2023, compared to EUR 17.3 million for FY
2022, an increase of 8.1% mainly due to improved performance in both the social
cards and social casino portfolios and cost optimisation across the segment
combined with improved profitability in metaverse titles, more than offsetting
the contribution lost in Q4 2023 from the sale of our social card games
portfolio in Q3 2023. On a like-for-like basis, the Adjusted EBITDA of the
remaining Premium Games titles across our social casino and metaverse portfolios
was EUR 9.0 million for FY 2023, as compared to EUR 5.6 million for FY 2022, an
increase of approximately 60.7% mainly driven by improved performance in the
social casino portfolio and cost optimisation across the segment.
Selected Q4 2023 business highlights
* Enhanced Habbo gameplay to more closely reflect previous environment and
improve engagement with higher spending users.
* Migrated social casino data centre to Azerion's AWS contract.
* Joined forces with Sovereign Nature Initiative to transform the Hotel
Hideaway metaverse into an educational sanctuary, fostering awareness about
wildlife and their habitats.
Premium Games - Selected Operational KPIs
Premium Games - Operational KPIs+-------------------------------+-------+-------+-------+-------+-------+
| |Q4 2022|Q1 2023|Q2 2023|Q3 2023|Q4 2023|
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. Time in Game per Day (min)|79 |84 |84 |79 |94 |
+-------------------------------+-------+-------+-------+-------+-------+
|Avg. DAUs (thousands) |559 |601 |558 |454 |267 |
+-------------------------------+-------+-------+-------+-------+-------+
|ARPDAU (EUR) |0.45 |0.42 |0.42 |0.44 |0.46 |
+-------------------------------+-------+-------+-------+-------+-------+
* The Average Time in Game per Day (min) increased by 19% in Q4 2023 to 94
minutes per day as compared to Q4 2022. This increase was largely due to the
loss of users arising from the sale of social card games, with the users
passing with the divestment generally having a lower Avg. Time in Game per
Day (min) compared to users in the social casino and metaverse titles.
* The Average Daily Active Users (DAUs) decreased by (52)% in Q4 2023 compared
to Q4 2022, mainly due to the loss of active players arising from the sale
of the social card games portfolio.
* The Average Revenue per Daily Active User (ARPDAU) increased slightly in Q4
2023 as compared to Q4 2022, due to improved spending in social casino and
metaverse titles.
As from 28 August 2023, the selected operational KPIs no longer contain results
from the social card games portfolio following its divestment.
Outlook
Net revenue for FY 2024 is expected to be in the range of approximately EUR 540
million to EUR 560 million, with annual growth thereafter in the medium term
expected to be approximately 10%.
Adjusted EBITDA for FY 2024 is expected to be in the range of approximately EUR
75 million to EUR 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
Interest Bearing Debt
Interest Bearing Debt
in millions of EUR
+----------------------------------------+------------------+------------------+
| | 31 December 2023 | 31 December 2022 | +----------------------------------------+------------------+------------------+
| Total non-current indebtedness | 172.0 | 215.8 | +----------------------------------------+------------------+------------------+
| Total current indebtedness | 13.0 | 12.8 | +----------------------------------------+------------------+------------------+
| Total financial indebtedness | 185.0 | 228.6 | +----------------------------------------+------------------+------------------+
| Deduct Zero interest bearing loans | - | (0.1) | +----------------------------------------+------------------+------------------+
| Interest Bearing Debt | 185.0 | 228.5 | +----------------------------------------+------------------+------------------+
| Less: Cash and cash equivalents | (39.9) | (50.9) | +----------------------------------------+------------------+------------------+
| Net Interest Bearing Debt (Bond terms) | 145.1 | 177.6 | +----------------------------------------+------------------+------------------+
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 - Q4
in millions of EUR
+--------------+---------------------------------------------------------------+
| |Q4 | +--------------+--------------------------------+------------------------------+
| |2023 |2022 | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
| |Azerion |Premium |Platform|Other|Azerion|Premium|Platform|Other| | |Group |Games | | |Group |Games | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Profit / | | | | | | | | | |(loss) for the|3.4 | | | |16.9 | | | | |period | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Income Tax |(3.3) | | | |(9.4) | | | | |expense | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Profit / | | | | | | | | | |(loss) before |0.1 | | | |7.5 | | | | |tax | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Net finance |6.7 | | | |1.3 | | | | |costs | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Operating | | | | | | | | | |profit / |6.8 |0.6 |6.2 |- |8.8 |1.3 |8.0 |(0.5)| |(loss) | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Depreciation, | | | | | | | | | |amortisation |12.7 |3.2 |9.5 |- |12.2 |3.3 |8.7 |0.2 | |and impairment| | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|De-SPAC | | | | | | | | | |related |- |- |- |- |(0.3) |0.1 |0.2 |(0.6)| |expenses | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Other |1.7 |(0.2) |1.9 |- |(1.7) |(0.4) |(1.3) |- | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Acquisition |3.9 |(0.1) |4.0 |- |2.7 |- |1.7 |1.0 | |expenses | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Restructuring |0.8 |0.1 |0.7 |- |0.4 |0.1 |0.4 |(0.1)| +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
|Adjusted |25.9 |3.6 |22.3 |- |22.1 |4.4 |17.7 |- | |EBITDA | | | | | | | | | +--------------+--------+--------+--------+-----+-------+-------+--------+-----+
Reconciliation of net income to Adjusted EBITDA - FY
in millions of EUR
+--------------+---------------------------------------------------------------+
| |FY | +--------------+------------------------------+--------------------------------+
| |2023 |2022 | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
| |Azerion|Premium|Platform|Other|Azerion|Premium|Platform|Other | | |Group |Games | | |Group |Games | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Profit / | | | | | | | | | |(loss) for the|35.7 | | | |(133.1)| | | | |period | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Income Tax |18.1 | | | |(7.0) | | | | |expense | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Profit / | | | | | | | | | |(loss) before |53.8 | | | |(140.1)| | | | |tax | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Net finance |19.7 | | | |1.1 | | | | |costs | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Operating | | | | | | | | | |profit / |73.5 |74.8 |(1.3) |- |(139.0)|2.4 |(6.8) |(134.6)| |(loss) | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Depreciation, | | | | | | | | | |amortisation |45.2 |12.8 |32.4 |- |38.5 |11.9 |26.4 |0.2 | |and impairment| | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|De-SPAC | | | | | | | | | |related |- |- |- |- |144.5 |2.5 |9.6 |132.4 | |expenses | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Other(1)) |(69.4) |(71.8) |2.4 |- |(0.6) |- |(1.5) |0.9 | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Acquisition |14.4 |1.1 |13.3 |- |6.9 |0.2 |5.5 |1.2 | |expenses | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Restructuring |7.7 |1.8 |5.9 |- |1.8 |0.3 |1.6 |(0.1) | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
|Adjusted |71.4 |18.7 |52.7 |- |52.1 |17.3 |34.8 |- | |EBITDA | | | | | | | | | +--------------+-------+-------+--------+-----+-------+-------+--------+-------+
(1))Other mainly includes the net gain from the sale of the social card games
portfolio for EUR 72.6 million.
Operating expenses
Breakdown of Operating expenses
in millions of EUR
+------------------------------------------------+-------------+---------------+
| |Q4 |FY | | +------+------+-------+-------+ | |2023 |2022 |2023 |2022 | +------------------------------------------------+------+------+-------+-------+
|Personnel costs |(24.9)|(23.9)|(98.5) |(107.2)| +------------------------------------------------+------+------+-------+-------+
|Includes: | | | | | +------------------------------------------------+------+------+-------+-------+
|Restructuring related expenses |(0.8) |(0.4) |(7.7) |(1.8) | +------------------------------------------------+------+------+-------+-------+
|Azerion Founder Warrants, reported as share- |- |- |- |(9.9) | |based payment expense | | | | | +------------------------------------------------+------+------+-------+-------+
|De-SPAC early exercised share-based payment |- |- |- |(10.3) | |expense | | | | | +------------------------------------------------+------+------+-------+-------+
|Other expenses |(8.7) |(11.0)|(37.3) |(161.0)| +------------------------------------------------+------+------+-------+-------+
|Includes: | | | | | +------------------------------------------------+------+------+-------+-------+
|De-SPAC transaction related expenses | | | |(121.4)| +------------------------------------------------+------+------+-------+-------+
|Operating expenses |(33.6)|(34.9)|(135.8)|(268.2)| +------------------------------------------------+------+------+-------+-------+
|Of which: | | | | | +------------------------------------------------+------+------+-------+-------+
|Platform |(30.6)|(27.1)|(111.9)|(104.0)| +------------------------------------------------+------+------+-------+-------+
|Premium Games |(2.6) |(7.5) |(23.8) |(30.6) | +------------------------------------------------+------+------+-------+-------+
Restructuring
In relation to ongoing consolidation and integration, restructuring charges in
Q1 and Q2 2024 are expected in total to be in the range of approximately EUR 1.0
million to EUR 1.5 million. These costs impact the reported operating profit /
loss, but are removed from Adjusted EBITDA.
Bond Refinancing
On 31 October 2023, Azerion successfully completed the refinancing of its then
outstanding senior secured fixed rate bonds maturing in April 2024 with ISIN
SE0015837794. Following a book-building process, Azerion successfully placed EUR
165 million of senior secured floating rate bonds under a framework of EUR 300
million to qualified institutional investors internationally (the "New Bonds").
The New Bonds have a 3-year tenor, carry a floating rate coupon of 3 months
EURIBOR plus 6.75 per cent per annum and were issued at 98.5 per cent of par.
The Company applied for listing of the New Bonds with ISIN NO0013017657 on the
Corporate Bond List of Nasdaq Stockholm, with the Bonds being admitted to
trading on 13 December 2023.
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
+-----------------------------------------------+--------------+---------------+
| |Q4 |FY | +-----------------------------------------------+-------+------+-------+-------+
| |2023 |2022 |2023 |2022 | +-----------------------------------------------+-------+------+-------+-------+
|Net revenue |171.8 |148.8 |515.0 |452.6 | +-----------------------------------------------+-------+------+-------+-------+
|Costs of services and materials |(118.4)|(95.7)|(332.8)|(286.3)| +-----------------------------------------------+-------+------+-------+-------+
|Personnel costs |(24.9) |(23.9)|(98.5) |(107.2)| +-----------------------------------------------+-------+------+-------+-------+
|Depreciation |(2.2) |(2.1) |(8.1) |(7.0) | +-----------------------------------------------+-------+------+-------+-------+
|Amortisation |(10.5) |(9.6) |(37.1) |(31.0) | +-----------------------------------------------+-------+------+-------+-------+
|Impairment of non-current assets |- |(0.5) |- |(0.5) | +-----------------------------------------------+-------+------+-------+-------+
|Other gains and losses |(0.3) |2.8 |72.3 |1.4 | +-----------------------------------------------+-------+------+-------+-------+
|Other expenses |(8.7) |(11.0)|(37.3) |(161.0)| +-----------------------------------------------+-------+------+-------+-------+
|Operating profit / (loss) |6.8 |8.8 |73.5 |(139.0)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Finance income |8.7 |5.1 |16.2 |22.3 | +-----------------------------------------------+-------+------+-------+-------+
|Finance costs |(15.4) |(6.4) |(35.9) |(23.4) | +-----------------------------------------------+-------+------+-------+-------+
|Net Finance costs |(6.7) |(1.3) |(19.7) |(1.1) | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Profit / (loss) before tax |0.1 |7.5 |53.8 |(140.1)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Income tax expense |3.3 |9.4 |(18.1) |7.0 | +-----------------------------------------------+-------+------+-------+-------+
|Profit / (loss) for the period |3.4 |16.9 |35.7 |(133.1)| +-----------------------------------------------+-------+------+-------+-------+
|Attributable to: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Owners of the company |2.7 |15.5 |34.3 |(134.3)| +-----------------------------------------------+-------+------+-------+-------+
|Non-controlling interest |0.7 |1.4 |1.4 |1.2 | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Exchange difference on translation of foreign |(0.3) |(1.3) |(0.6) |(2.6) | |operations | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Total other comprehensive income |(0.3) |(1.3) |(0.6) |(2.6) | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Total comprehensive income/(loss) |3.1 |15.6 |35.1 |(135.7)| +-----------------------------------------------+-------+------+-------+-------+
|Attributable to: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Owners of the company |2.4 |14.9 |33.7 |(135.5)| +-----------------------------------------------+-------+------+-------+-------+
|Non-controlling interest |0.7 |0.7 |1.4 |(0.2) | +-----------------------------------------------+-------+------+-------+-------+
Condensed consolidated statement of financial position
Condensed consolidated statement of financial position
in millions of EUR
+-----------------------------------------+----------------+----------------+
| |31 December 2023|31 December 2022|
+-----------------------------------------+----------------+----------------+
|Assets | | |
+-----------------------------------------+----------------+----------------+
|Non-current assets |454.0 |429.3 |
+-----------------------------------------+----------------+----------------+
|Goodwill |187.1 |184.2 |
+-----------------------------------------+----------------+----------------+
|Intangible assets |176.1 |186.2 |
+-----------------------------------------+----------------+----------------+
|Property, plant and equipment |17.0 |20.5 |
+-----------------------------------------+----------------+----------------+
|Non-current financial assets |61.4 |36.8 |
+-----------------------------------------+----------------+----------------+
|Deferred tax asset |12.3 |1.5 |
+-----------------------------------------+----------------+----------------+
|Investment in joint venture and associate|0.1 |0.1 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Current assets |201.4 |209.2 |
+-----------------------------------------+----------------+----------------+
|Trade and other receivables |160.1 |157.3 |
+-----------------------------------------+----------------+----------------+
|Current tax assets |1.4 |1.0 |
+-----------------------------------------+----------------+----------------+
|Cash and cash equivalents |39.9 |50.9 |
+-----------------------------------------+----------------+----------------+
|Total assets |655.4 |638.5 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Equity | | |
+-----------------------------------------+----------------+----------------+
|Share capital |1.2 |1.2 |
+-----------------------------------------+----------------+----------------+
|Share premium |140.2 |130.8 |
+-----------------------------------------+----------------+----------------+
|Treasury shares |- |- |
+-----------------------------------------+----------------+----------------+
|Legal reserve |27.7 |25.2 |
+-----------------------------------------+----------------+----------------+
|Share based payment reserve |12.7 |13.7 |
+-----------------------------------------+----------------+----------------+
|Currency translation reserve |(2.0) |(1.3) |
+-----------------------------------------+----------------+----------------+
|Other equity instruments |- |29.0 |
+-----------------------------------------+----------------+----------------+
|Retained earnings |(75.0) |(104.8) |
+-----------------------------------------+----------------+----------------+
|Shareholders' equity |104.8 |93.8 |
+-----------------------------------------+----------------+----------------+
|Non-controlling interest |6.0 |2.4 |
+-----------------------------------------+----------------+----------------+
|Total equity |110.8 |96.2 |
+-----------------------------------------+----------------+----------------+
| | ||
+-----------------------------------------+----------------+----------------+
|Liabilities | | |
+-----------------------------------------+----------------+----------------+
|Non-current liabilities |230.2 |257.7 |
+-----------------------------------------+----------------+----------------+
|Borrowings |161.9 |201.5 |
+-----------------------------------------+----------------+----------------+
|Lease liabilities |10.1 |14.3 |
+-----------------------------------------+----------------+----------------+
|Provisions |1.6 |1.6 |
+-----------------------------------------+----------------+----------------+
|Deferred tax liability |40.0 |25.3 |
+-----------------------------------------+----------------+----------------+
|Other non-current liability |16.6 |15.0 |
+-----------------------------------------+----------------+----------------+
| | | |
+-----------------------------------------+----------------+----------------+
|Current liabilities |314.4 |284.6 |
+-----------------------------------------+----------------+----------------+
|Borrowings |8.8 |7.9 |
+-----------------------------------------+----------------+----------------+
|Provisions |2.3 |0.9 |
+-----------------------------------------+----------------+----------------+
|Trade payables (1)) |141.0 |111.9 |
+-----------------------------------------+----------------+----------------+
|Accrued liabilities(1)) |112.2 |103.7 |
+-----------------------------------------+----------------+----------------+
|Current tax liabilities |13.4 |5.4 |
+-----------------------------------------+----------------+----------------+
|Lease liabilities |4.2 |4.9 |
+-----------------------------------------+----------------+----------------+
|Other current liabilities(1)) |32.5 |49.9 |
+-----------------------------------------+----------------+----------------+
|Total liabilities |544.6 |542.3 |
+-----------------------------------------+----------------+----------------+
|Total equity and liabilities |655.4 |638.5 |
+-----------------------------------------+----------------+----------------+
(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 EUR
+-----------------------------------------------+-------+------+-------+-------+
| |2023 |2022 |2023 |2022 | +-----------------------------------------------+-------+------+-------+-------+
| |Q4 |Q4 |FY |FY | +-----------------------------------------------+-------+------+-------+-------+
|Operating profit / (loss) |6.8 |8.8 |73.5 |(139.0)| +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Adjustments for: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Depreciation and amortisation |12.7 |11.7 |45.2 |38.0 | +-----------------------------------------------+-------+------+-------+-------+
|Impairment of tangible & intangible assets |- |0.5 |- |0.5 | +-----------------------------------------------+-------+------+-------+-------+
|Movements in provisions per profit and loss |0.9 |1.2 |8.8 |3.0 | +-----------------------------------------------+-------+------+-------+-------+
|Gain on sale of social card game portfolio |- |- |(72.6) |- | +-----------------------------------------------+-------+------+-------+-------+
|Loss on sale of subsidiaries |0.1 |- |0.1 |- | +-----------------------------------------------+-------+------+-------+-------+
|Share-based payments expense |0.1 |(0.2) |0.8 |22.7 | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC related expenses |- |0.2 |- |14.8 | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC listing expense |- |- |- |107.1 | +-----------------------------------------------+-------+------+-------+-------+
|Other non-cash items |- |- |(2.9) |- | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Changes in working capital items: | | | | | +-----------------------------------------------+-------+------+-------+-------+
|(Increase) / Decrease in trade and other |(6.5) |(20.5)|12.1 |(22.1) | |receivables | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Increase / (Decrease) in trade and other |30.4 |26.8 |20.2 |43.1 | |payables | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Utilisation of provisions |(3.1) |(1.5) |(9.9) |(3.1) | +-----------------------------------------------+-------+------+-------+-------+
|Interest paid |(3.2) |(4.7) |(17.2) |(18.7) | +-----------------------------------------------+-------+------+-------+-------+
|Income tax paid |(2.7) |(0.2) |(3.7) |(1.4) | +-----------------------------------------------+-------+------+-------+-------+
|Net cash provided by / (used for) operating |35.5 |22.1 |54.4 |44.9 | |activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Cash flows from investing activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Net proceeds from sale of business |- |- |66.0 |- | +-----------------------------------------------+-------+------+-------+-------+
|Payments for property, plant and equipment |(0.1) |(0.1) |(1.5) |(1.5) | +-----------------------------------------------+-------+------+-------+-------+
|Payments for intangibles |(3.7) |(6.0) |(23.3) |(20.2) | +-----------------------------------------------+-------+------+-------+-------+
|Net cash outflow on acquisition of subsidiaries|(15.7) |(8.7) |(48.8) |(54.1) |
+-----------------------------------------------+-------+------+-------+-------+
|Net cash outflow on acquisition of securities |- |- |(2.6) |- | |and equity investments | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Net cash provided by / (used for) investing |(19.5) |(14.8)|(10.2) |(75.8) | |activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
| | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Cash flows from financing activities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Proceeds from external borrowings |162.6 |0.5 |163.1 |0.5 | +-----------------------------------------------+-------+------+-------+-------+
|Repayment of external borrowings |(200.7)|(3.0) |(204.3)|(5.0) | +-----------------------------------------------+-------+------+-------+-------+
|De-SPAC related expenses |- |(0.3) |- |(33.7) | +-----------------------------------------------+-------+------+-------+-------+
|Payment of principal portion of lease |(1.8) |(2.4) |(6.8) |(7.6) | |liabilities | | | | | +-----------------------------------------------+-------+------+-------+-------+
|Early cancellation of lease liability |- |- |(1.5) |- | +-----------------------------------------------+-----
| Name | WKN | Börse | Kurs | Datum/Zeit | Diff. | Diff. % | Geld | Brief | Erster | Schluss | |
|---|---|---|---|---|---|---|---|---|---|---|---|
 |
AZERION GROUP EO-01 | A2QSAE | Frankfurt | 1,502 | 18.06.24 09:22:48 | +0,002 | +0,13% | 1,506 | 1,736 | 1,502 | 1,500 |
