REG - Nexxen International - Q3 & 9-Month 2024 Results
15/11/2024 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241115:nRSO3415Ma&default-theme=true
RNS Number : 3415M Nexxen International Ltd 15 November 2024
15 November 2024
Nexxen International Ltd
("Nexxen" or the "Company")
Nexxen Reports Third Quarter 2024 Financial Results
Generated 12% year-over-year Contribution ex-TAC growth in Q3 2024, fueled by
record Q3 CTV revenue which increased 52% year-over-year
Achieved 49% year-over-year Adjusted EBITDA growth in Q3 2024 while expanding
Adjusted EBITDA Margin as a percentage of Contribution ex-TAC to 37% from 28%
in Q3 2023
Reaffirming full year 2024 Contribution ex-TAC guidance and raising full year
2024 Adjusted EBITDA guidance
Nexxen International Ltd. (AIM/NASDAQ: NEXN) ("Nexxen" or the "Company"), a
global, flexible advertising technology platform with deep expertise in data
and advanced TV, announced today its financial results for the three and nine
months ended September 30, 2024.
Q3 2024 Financial Highlights
· Record Q3 Contribution ex-TAC of $85.5 million, up 12% year-over-year
· Record Q3 programmatic revenue of $81.6 million, up 10%
year-over-year
· Record Q3 CTV revenue of $29.7 million, up 52% year-over-year
· CTV revenue reflected 36% of programmatic revenue, up from 26% in Q3
2023
· Programmatic revenue reflected 90% of revenue, compared to 93% in Q3
2023
· Adjusted EBITDA of $31.6 million, up 49% year-over-year, representing
a 37% Adjusted EBITDA Margin on a Contribution ex-TAC basis (35% on a revenue
basis), compared to 28% (27% on a revenue basis) in Q3 2023
· Video revenue reflected 71% of programmatic revenue, up from 66% in
Q3 2023
· $166.5 million net cash as of September 30, 2024, alongside $90
million undrawn on the Company's revolving credit facility and no long-term
debt
Financial Highlights for the Nine Months Ended September 30, 2024
· Record Contribution ex-TAC of $238.3 million, up 7% year-over-year
· Record programmatic revenue of $225.7 million, up 6% year-over-year
· Record CTV revenue of $76.7 million, up 17% year-over-year
· CTV revenue reflected 34% of programmatic revenue, compared to 31%
for the same prior year period
· Programmatic revenue reflected 89% of revenue, compared to 90% for
the same prior year period
· Adjusted EBITDA of $70.3 million, up 37% year-over-year, representing
a 29% Adjusted EBITDA Margin on a Contribution ex-TAC basis (28% on a revenue
basis), compared to 23% (22% on a revenue basis) for the same prior year
period
· Video revenue reflected 70% of programmatic revenue for the nine
months ended September 30, 2024 and 2023
"Nexxen continues to execute on its strategy as our platform's powerful and
fully integrated data, CTV and video capabilities offer much-needed AdTech
solutions for advertisers and digital publishers. Over the last several
quarters we've clarified our value proposition while improving our sales
efforts and operational efficiency, which together drove record Q3 results,"
said Ofer Druker, Chief Executive Officer of Nexxen. "Major players in the
industry are increasingly partnering with Nexxen for a combination of its
robust technology and data capabilities, flexible unified platform approach
and ability to maximize efficiency and returns across the AdTech and data
supply chain. Looking ahead, we strongly believe our full stack platform and
robust access to data gives Nexxen an AI edge, and that our Generative AI
initiative will contribute to Nexxen's growth, as well as its platform
differentiation and appeal in 2025 by further enhancing usability and outcomes
for our customers."
Financial Guidance
o Nexxen provides the following financial guidance for full year 2024:
· Reaffirming full year 2024 Contribution ex-TAC in a range of
approximately $340 - $345 million
· Raising full year 2024 Adjusted EBITDA to approximately $107 million
from approximately $100 million
· Reaffirming full year 2024 programmatic revenue to reflect
approximately 90% of full year 2024 revenue
o Management expects the Company to increase its technology, data, AI and
Generative AI investments in Q4 2024 and full year 2025 to further its
platform and data advantages.
Operational Highlights
· Launched strategic automatic content recognition ("ACR") data
partnership with The Trade Desk, expanding the Company's data licensing
revenue opportunities and sales channels.
· Named a preferred data platform partner for Kinective Media by United
Airlines, enabling Nexxen's advertiser clients to tap into premium first party
data from United's customers and MileagePlus loyalty program members to layer
insights onto campaigns, and Tinuiti has been an early adopter.
· Released data-driven solutions catered to political advertiser
clients which fueled increased audience reach and deeper campaign insights for
customers around the 2024 U.S. election cycle, while helping drive what the
Company believes will reflect record annual political Contribution ex-TAC for
Nexxen.
· Added an all-time high 138 new actively-spending first-time
advertiser customers in Q3 2024 across travel, political and other verticals,
inclusive of 31 new enterprise self-service advertiser customers and two new
independent agencies leveraging the Company's self-service software solutions.
· Onboarded 61 new supply partners across several verticals and formats
including CTV, mobile app, gaming, display, audio and online video in Q3 2024.
Share Repurchase Program Updates
o Nexxen (and its subsidiaries) repurchased 5,089,680 Ordinary shares during
Q3 2024 at an average price of 275.87 pence, reflecting a total investment of
£14.1 million or $18.3 million.
o From March 1, 2022, through September 30, 2024, the Company (and its
subsidiaries) repurchased 33,415,495 Ordinary shares, or 21.6% of shares
outstanding, reflecting a total investment of £110.2 million or $137.2
million.
o The Company received approval to launch a new $50 million Ordinary Share
repurchase program which is expected to begin on November 19, 2024 and
continue until May 19, 2025 or completion. The impending program does not
obligate Nexxen to repurchase any particular amount of Ordinary Shares and the
program may be suspended, modified or discontinued at any time at the
Company's discretion (if not in a close period), subject to applicable law.
The Company's previous Ordinary Share repurchase program expired on November
1, 2024.
o Nexxen's Board of Directors intends to continue evaluating the potential
for implementing additional share repurchase programs upon completion of the
impending program, subject to then current market conditions and necessary
approvals.
Annual General Meeting ("AGM") Update: Nexxen ADR to Ordinary Share Exchange,
Reverse Share Split and AIM Delisting to be Voted on by Shareholders
o Nexxen's Board of Directors approved submission of several trading
structure changes to a shareholder vote at the Company's upcoming AGM taking
place on December 20, 2024. If approved by shareholders, the Company intends
to exchange its Nasdaq-listed ADRs to Nasdaq-listed Ordinary Shares and
terminate the ADR facility, conduct a reverse share split at a two-for-one
ratio which will allow for a one-to-one exchange for ADRs into Ordinary Shares
and delist from the AIM.
o The Company and its Board of Directors believe this updated trading
structure can benefit Nexxen and its shareholders over the long term for
several reasons including increasing the potential to attract U.S. investors,
reducing the complexity of the Company's reporting and regulatory compliance
structure, consolidating and increasing liquidity, possible inclusion in major
indices which the Company's shares are precluded from due to its current
structure, better aligning the Company's stock with other U.S.-listed AdTech
companies, reducing price volatility that can result from a dual-listing and
cost savings.
o The AGM circular provides greater detailed information on this proposal,
the timing of the proposed changes and its effect on trading for the Company's
U.S. and U.K. investors.
o The Company intends to host calls with both U.S. and U.K. investors and
analysts ahead of the upcoming AGM to provide greater details on the proposed
changes, timing of those changes and its strategic rationale.
Change to Board of Directors
o Nexxen announces that Executive Director Yaniv Carmi, a Director since
2014, is stepping down from the Company's Board of Directors ("Board")
effective November 15, 2024, thereby reducing the size of the Board from nine
members to eight members. Mr. Carmi will continue to serve as Nexxen's Chief
Operating Officer.
o The Sustainability, Nominating and Governance Committee of the Board (the
"Committee") has determined that the smaller eight-member Board, consisting of
one Executive Director and seven Non-Executive Directors, will be more
flexible and efficient to support the ongoing needs of the business and that
the reduced Board size and composition is in line with Board composition
practices of similar sized companies traded on the Nasdaq and AIM.
o The Committee further determined that Mr. Carmi stepping down from the
Board (but remaining Chief Operating Officer) is in line with best practices
of Nasdaq-listed companies similar to Nexxen, where the Chief Operating
Officer does not serve as a Director.
Financial Highlights for the Three and Nine Months Ended September 30, 2024 ($
in millions, except per share amounts)
Three months ended September 30 Nine months ended September 30
2024 2023 % 2024 2023 %
IFRS Highlights
Revenue 90.2 80.1 13% 253.2 236.1 7%
Programmatic Revenue 81.6 74.2 10% 225.7 213.0 6%
Operating profit (loss) 16.3 (3.4) 575% 16.1 (26.6) 160%
Net income (loss) margin on a gross profit basis 23% (2%) 6% (16%)
Total comprehensive income (loss) 16.5 (2.6) 743% 12.1 (23.5) 152%
Diluted earnings (loss) per share 0.10 (0.01) 1,341% 0.07 (0.17) 143%
Non-IFRS Highlights
Contribution ex-TAC 85.5 76.6 12% 238.3 223.7 7%
Adjusted EBITDA 31.6 21.3 49% 70.3 51.2 37%
Adjusted EBITDA Margin on a Contribution ex-TAC basis 37% 28% 29% 23%
Non-IFRS net income 19.1 13.4 42% 32.9 17.8 85%
Non-IFRS diluted earnings per share 0.14 0.09 48% 0.23 0.12 88%
Third Quarter 2024 Financial Results Webcast and Conference Call Details
· When: November 15, 2024, at 6:00 AM PT / 9:00 AM ET / 2:00 PM GMT
· Webcast: A live and archived webcast can be accessed from the Events
and Presentations section of Nexxen's Investor Relations website at
https://investors.nexxen.com/ (https://investors.nexxen.com/)
· Participant Dial-In Numbers:
o U.S. / Canada Toll-Free Dial-In Number: (888) 596-4144
o U.K. Toll-Free Dial-In Number: +44 800 260 6470
o International Dial-In Number: +1 (646) 968-2525
o Conference ID: 8759727
About Nexxen
Nexxen empowers advertisers, agencies, publishers and broadcasters around the
world to utilize data and advanced TV in the ways that are most meaningful to
them. Our flexible and unified technology stack comprises a demand-side
platform ("DSP") and supply-side platform ("SSP"), with the Nexxen Data
Platform at its core. With streaming in our DNA, Nexxen's robust capabilities
span discovery, planning, activation, monetization, measurement and
optimization - available individually or in combination - all designed to
enable our partners to achieve their goals, no matter how far-reaching or
hyper niche they may be.
Nexxen is headquartered in Israel and maintains offices throughout the
United States, Canada, Europe and Asia-Pacific, and is traded on
the London Stock Exchange (AIM: NEXN) and NASDAQ (NEXN). For more
information, visit www.nexxen.com
(https://www.globenewswire.com/Tracker?data=8er6BEGEspzahjNz2HsjcYcQJCri9qzQfkLKJllLSndRki_wJpjNuBBrkiktBGxkYsjWJfLLyA-mvKewq03Jog==)
For further information please contact:
Nexxen International Ltd.
Billy Eckert, Vice President of Investor Relations
ir@nexxen.com (mailto:ir@nexxen.com)
Caroline Smith, Vice President of Communications
csmith@nexxen.com (mailto:csmith@nexxen.com)
Vigo Consulting (U.K. Financial PR & Investor Relations)
Jeremy Garcia / Peter Jacob
Tel: +44 20 7390 0230 or nexxen@vigoconsulting.com
(mailto:nexxen@vigoconsulting.com)
Cavendish Capital Markets Limited
Jonny Franklin-Adams / Seamus Fricker / Rory Sale (Corporate Finance)
Tim Redfern / Jamie Anderson (ECM)
Tel: +44 20 7220 0500
Forward Looking Statements
This press release contains forward-looking statements, including
forward-looking statements within the meaning of Section 27A of the United
States Securities Act of 1933, as amended, and Section 21E of the United
States Securities and Exchange Act of 1934, as amended. Forward-looking
statements are identified by words such as "anticipates," "believes,"
"expects," "intends," "may," "can," "will," "estimates," and other similar
expressions. However, these words are not the only way Nexxen identifies
forward-looking statements. All statements contained in this press release
that do not relate to matters of historical fact should be considered
forward-looking statements, including without limitation statements regarding
anticipated financial results for full year 2024, full year 2025 and beyond;
anticipated benefits of Nexxen's strategic transactions and commercial
partnerships; anticipated features and benefits of Nexxen's products and
service offerings; Nexxen's positioning for accelerated growth and continued
future growth in both the U.S. and international markets in 2024 and beyond;
Nexxen's medium- to long-term prospects; management's belief that Nexxen is
well-positioned to benefit from future industry growth trends and
Company-specific catalysts; the Company's expectations with respect to CTV
revenue growth and data licensing revenue growth; the Company's expectations
with respect to generating record annual political Contribution ex-TAC in full
year 2024; the Company's plans with respect to its cash reserves and future
share repurchase program; the anticipated impact of the Company's Generative
AI initiative and its ability to contribute to the Company's growth; the
anticipated benefits and potential timing of the Company's proposed ADR
exchange and termination, reverse split and AIM delisting; as well as any
other statements related to Nexxen's future financial results and operating
performance. These statements are neither promises nor guarantees but involve
known and unknown risks, uncertainties and other important factors that may
cause Nexxen's actual results, performance or achievements to be materially
different from its expectations expressed or implied by the forward-looking
statements, including, but not limited to, the following: negative global
economic conditions; global conflicts and war, including the war and
hostilities between Israel and Hamas, Hezbollah and Iran, and how those
conditions may adversely impact Nexxen's business, customers and the markets
in which Nexxen competes; changes in industry trends; the risk that Nexxen
will not realize the anticipated benefits of its acquisition of Amobee and
strategic investment in VIDAA; and, other negative developments in Nexxen's
business or unfavourable legislative or regulatory developments. Nexxen
cautions you not to place undue reliance on these forward-looking statements.
For a more detailed discussion of these factors, and other factors that could
cause actual results to vary materially, interested parties should review the
risk factors listed in the Company's most recent Annual Report on Form 20-F,
filed with the U.S. Securities and Exchange Commission (www.sec.gov
(https://www.globenewswire.com/Tracker?data=gPgQB1DRd3uO04Pe1Nw8HIpq46d0Dt1v2Oxk6rZfSqGQFu9JJd9FAB5SQGpGWUSLBV6GTasGV0uIK2SWvdiElw==)
) on March 6, 2024. Any forward-looking statements made by Nexxen in this
press release speak only as of the date of this press release, and Nexxen does
not intend to update these forward-looking statements after the date of this
press release, except as required by law.
Nexxen, and the Nexxen logo are trademarks of Nexxen International
Ltd. in the United States and other countries. All other trademarks are the
property of their respective owners. The use of the word "partner" or
"partnership" in this press release does not mean a legal partner or legal
partnership.
Use of Non-IFRS Financial Information
In addition to our IFRS results, we review certain non-IFRS financial measures
to help us evaluate our business, measure our performance, identify trends
affecting our business, establish budgets, measure the effectiveness of
investments in our technology and development and sales and marketing, and
assess our operational efficiencies. These non-IFRS measures include
Contribution ex-TAC, Adjusted EBITDA, Adjusted EBITDA Margin, Non-IFRS Net
Income and Non-IFRS Earnings per share, each of which is discussed below.
These non-IFRS financial measures are not intended to be considered in
isolation from, as substitutes for, or as superior to the corresponding
financial measures prepared in accordance with IFRS. You are encouraged to
evaluate these adjustments and review the reconciliation of these non-IFRS
financial measures to their most comparable IFRS measures and the reasons we
consider them appropriate. It is important to note that the particular items
we exclude from, or include in, our non-IFRS financial measures may differ
from the items excluded from, or included in, similar non-IFRS financial
measures used by other companies. See "Reconciliation of Revenue to
Contribution ex-TAC," "Reconciliation of Total Comprehensive Income (Loss) to
Adjusted EBITDA," and "Reconciliation of Net Income (Loss) to Non-IFRS Net
Income," included as part of this press release.
o Contribution ex-TAC: Contribution ex-TAC for Nexxen is defined as gross
profit plus depreciation and amortization attributable to cost of revenue and
cost of revenue (exclusive of depreciation and amortization) minus the
Performance media cost ("traffic acquisition costs" or "TAC"). Performance
media cost represents the costs of purchases of impressions from publishers on
a cost-per-thousand impression basis in our non-core Performance activities.
Contribution ex-TAC is a supplemental measure of our financial performance
that is not required by or presented in accordance with IFRS. Contribution
ex-TAC should not be considered as an alternative to gross profit as a measure
of financial performance. Contribution ex-TAC is a non-IFRS financial measure
and should not be viewed in isolation. We believe Contribution ex-TAC is a
useful measure in assessing the performance of Nexxen, because it facilitates
a consistent comparison against our core business without considering the
impact of traffic acquisition costs related to revenue reported on a gross
basis.
o Adjusted EBITDA: We define Adjusted EBITDA for Nexxen as total comprehensive
income (loss) for the period adjusted for foreign currency translation
differences for foreign operations, foreign currency translation for
subsidiary sold reclassified to profit and loss, financial expenses, net, tax
expenses (benefit), depreciation and amortization, stock-based compensation
expenses, acquisition related costs, restructuring and other expenses, net.
Adjusted EBITDA is included in the press release because it is a key metric
used by management and our Board of Directors to assess our financial
performance. Adjusted EBITDA is frequently used by analysts, investors and
other interested parties to evaluate companies in our industry. Management
believes that Adjusted EBITDA is an appropriate measure of operating
performance because it eliminates the impact of expenses that do not relate
directly to the performance of the underlying business.
o Adjusted EBITDA Margin: We define Adjusted EBITDA Margin as Adjusted EBITDA
on a Contribution ex-TAC basis.
o Non-IFRS Income and Non-IFRS Earnings per Share: We define non-IFRS earnings
per share as non-IFRS income divided by non-IFRS weighted-average shares
outstanding. Non-IFRS income is equal to net income (loss) excluding
acquisition related costs, stock-based compensation expenses, restructuring,
other expenses, net and amortization of acquired intangible assets, and also
considers the tax effects of non-IFRS adjustments. In periods in which we have
non-IFRS income, non-IFRS weighted-average shares outstanding used to
calculate non-IFRS earnings per share includes the impact of potentially
dilutive shares. Potentially dilutive shares consist of stock options,
restricted stock awards, restricted stock units and performance stock units,
each computed using the treasury stock method. We believe non-IFRS earnings
per share is useful to investors in evaluating our ongoing operational
performance and our trends on a per share basis and also facilitates
comparison of our financial results on a per share basis with other companies,
many of which present a similar non-IFRS measure. However, a potential
limitation of our use of non-IFRS earnings per share is that other companies
may define non-IFRS earnings per share differently, which may make comparison
difficult. This measure may also exclude expenses that may have a material
impact on our reported financial results. Non-IFRS earnings per share is a
performance measure and should not be used as a measure of liquidity. Because
of these limitations, we also consider the comparable IFRS measure of net
income.
We do not provide a reconciliation of forward-looking non-IFRS financial
metrics because reconciling information is not available without an
unreasonable effort, such as attempting to make assumptions that cannot
reasonably be made on a forward-looking basis to determine the corresponding
IFRS metric.
The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 (as implemented into English law) ("MAR"). With the
publication of this announcement via a Regulatory Information Service, this
inside information is now considered to be in the public domain.
Reconciliation of Total Comprehensive Income (Loss) to Adjusted EBITDA
Three months ended Nine months ended
September 30 September 30
2024 2023 % 2024 2023 %
($ in thousands)
Total comprehensive income (loss) 16,485 (2,563) 743% 12,123 (23,468) 152%
Foreign currency translation differences for foreign operation (1,944) 1,367 (1,540) (12)
Foreign currency translation for subsidiary sold reclassified to profit and - - - (1,234)
loss
Tax expenses (benefit) 1,503 (2,844) 3,628 (3,984)
Financial expenses, net 218 617 1,854 2,113
Depreciation and amortization 12,758 20,316 44,055 57,238
Stock-based compensation expenses 2,600 4,214 8,678 17,783
Acquisition related costs - 171 - 171
Restructuring - - - 796
Other expenses, net - - 1,488 1,765
Adjusted EBITDA 31,620 21,278 49% 70,286 51,168 37%
Reconciliation of Revenue to Contribution ex-TAC
Three months ended September 30 Nine months ended
September 30
2024 2023 % 2024 2023 %
($ in thousands)
Revenue 90,184 80,094 13% 253,193 236,077 7%
Cost of revenue (exclusive of depreciation and amortization) (13,857) (13,683) (43,952) (44,384)
Depreciation and amortization attributable to Cost of revenue (12,018) (12,727) (35,233) (37,143)
Gross profit (IFRS) 64,309 53,684 20% 174,008 154,550 13%
Depreciation and amortization attributable to Cost of revenue 12,018 12,727 35,233 37,143
Cost of revenue (exclusive of depreciation and amortization) 13,857 13,683 43,952 44,384
Performance media cost (4,655) (3,543) (14,854) (12,418)
Contribution ex-TAC (Non-IFRS) 85,529 76,551 12% 238,339 223,659 7%
Reconciliation of Net Income (Loss) to Non-IFRS Net Income
Three months ended Nine months ended
September 30 September 30
2024 2023 % 2024 2023 %
($ in thousands)
Net income (loss) 14,541 (1,196) 1,316% 10,583 (24,714) 143%
Acquisition related costs - 171 - 171
Amortization of acquired intangibles 3,851 10,164 17,950 28,021
Restructuring - - - 796
Stock-based compensation expenses 2,600 4,214 8,678 17,783
Other expenses, net - - 1,488 1,765
Tax effect of non-IFRS adjustments ((1)) (1,879) 65 (5,830) (6,067)
Non-IFRS Income 19,113 13,418 42% 32,869 17,755 85%
Weighted average shares outstanding-diluted (in millions) (2) 140.4 145.5 142.4 144.6
Non-IFRS diluted Earnings Per Share (in USD) 0.14 0.09 48% 0.23 0.12 88%
(1) Non-IFRS income includes the estimated tax impact from the expense items
reconciling between net income (loss) and non-IFRS income
(2) Non-IFRS earnings per share is computed using the same weighted-average
number of shares that are used to compute IFRS earnings (loss) per share
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
(Unaudited)
September 30 December 31
2024 2023
USD thousands
Assets
ASSETS:
Cash and cash equivalents 166,535 234,308
Trade receivables, net 201,036 201,973
Other receivables 5,889 8,293
Current tax assets 679 7,010
TOTAL CURRENT ASSETS 374,139 451,584
Fixed assets, net 16,377 21,401
Right-of-use assets 30,379 31,900
Intangible assets, net 344,604 362,000
Deferred tax assets 18,481 12,393
Investment in shares 25,000 25,000
Other long-term assets 1,092 525
TOTAL NON-CURRENT ASSETS 435,933 453,219
TOTAL ASSETS 810,072 904,803
Liabilities and shareholders' equity
LIABILITIES:
Current maturities of lease liabilities 14,496 12,106
Trade payables 198,559 183,296
Other payables 41,384 29,098
Current tax liabilities 7,043 4,937
TOTAL CURRENT LIABILITIES 261,482 229,437
Employee benefits 191 237
Long-term lease liabilities 21,678 24,955
Long term debt - 99,072
Other long-term liabilities 2,264 6,800
Deferred tax liabilities 562 754
TOTAL NON-CURRENT LIABILITIES 24,695 131,818
TOTAL LIABILITIES 286,177 361,255
SHAREHOLDERS' EQUITY:
Share capital 389 417
Share premium 378,815 410,563
Other comprehensive loss (901) (2,441)
Retained earnings 145,592 135,009
TOTAL SHAREHOLDERS' EQUITY 523,895 543,548
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 810,072 904,803
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF OPERATION AND OTHER
COMPREHENSIVE INCOME (LOSS)
(Unaudited)
Nine months ended Three months ended September 30
September 30
2024 2023 2024 2023
USD thousands USD thousands
Revenue 253,193 236,077 90,184 80,094
Cost of Revenue (Exclusive of depreciation and 43,952 44,384 13,857 13,683
amortization shown separately below)
Research and development expenses 36,605 39,652 11,693 12,576
Selling and marketing expenses 84,507 81,556 27,793 25,580
General and administrative expenses 26,521 38,067 7,821 11,362
Depreciation and amortization 44,055 57,238 12,758 20,316
Other expenses, net 1,488 1,765 - -
Total operating costs 193,176 218,278 60,065 69,834
16,065 (26,585) 16,262 (3,423)
Operating profit (loss)
Financing income (5,988) (6,121) (1,720) (1,790)
Financing expenses 7,842 8,234 1,938 2,407
Financing expenses, net 1,854 2,113 218 617
Profit (loss) before taxes on income 14,211 (28,698) 16,044 (4,040)
Tax benefit (expenses) (3,628) 3,984 (1,503) 2,844
Profit (loss) for the period 10,583 (24,714) 14,541 (1,196)
Other comprehensive income (loss) items:
Foreign currency translation differences for foreign operation 1,540 12 1,944 (1,367)
Foreign currency translation for subsidiary sold reclassified to profit and - 1,234 - -
loss
Total other comprehensive income (loss) 1,540 1,246 1,944 (1,367)
Total comprehensive income (loss) 12,123 (23,468) 16,485 (2,563)
Earnings per share
Basic earnings (loss) per share (in USD) 0.08 (0.17) 0.11 (0.01)
Diluted earnings (loss) per share (in USD) 0.07 (0.17) 0.10 (0.01)
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
Share capital Share premium Other comprehensive income Retained Earnings Total
USD thousands
Balance as of January 1, 2024 417 410,563 (2,441) 135,009 543,548
Total Comprehensive income for the period
Profit for the period - - - 10,583 10,583
Other comprehensive income:
Foreign currency translation - - 1,540 - 1,540
Total comprehensive income for the period - - 1,540 10,583 12,123
Transactions with owners, recognized directly in equity
Own shares acquired (37) (41,647) - - (41,684)
Share based payments - 9,175 - - 9,175
Exercise of share options 9 724 - - 733
Balance as of September 30, 2024 389 378,815 (901) 145,592 523,895
Balance as of January 1, 2023 413 400,507 (5,801) 156,496 551,615
Total Comprehensive income (loss) for the period
Loss for the period - - - (24,714) (24,714)
Other comprehensive income:
Foreign currency translation - - 12 - 12
Foreign currency translation for - - 1,234 - 1,234
subsidiary sold
Total comprehensive income (loss) for the period - - 1,246 (24,714) (23,468)
Transactions with owners, recognized directly in equity
Own shares acquired (7) (8,741) - - (8,748)
Share based payments - 17,749 - - 17,749
Exercise of share options 7 229 - - 236
Balance as of September 30, 2023 413 409,744 (4,555) 131,782 537,384
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
Nine months ended
September 30
2024 2023
USD thousands
CASH FLOWS FROM OPERATING ACTIVITIES:
Profit (loss) for the period 10,583 (24,714)
Adjustments for:
Depreciation and amortization 44,055 57,238
Net financing expense 1,581 1,889
Gain on leases modification (16) (115)
Remeasurement of net investment in a finance lease 1,488 -
Share-based compensation and restricted shares 8,678 17,783
Loss on sale of business unit - 1,765
Tax expenses (benefit) 3,628 (3,984)
Change in trade and other receivables 2,306 43,987
Change in trade and other payables 28,549 (68,326)
Change in employee benefits (44) 7
Income taxes received 553 269
Income taxes paid (2,489) (8,185)
Interest received 5,002 5,655
Interest paid (5,293) (6,142)
98,581 17,127
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Change in pledged deposits, net 172 1,007
Payments on finance lease receivable 1,350 863
Acquisition of fixed assets (3,870) (2,933)
Acquisition and capitalization of intangible assets (11,867) (11,387)
Repayment of debt investment 74 24
Net cash used in investing activities (14,141) (12,426)
CASH FLOWS FROM FINANCING ACTIVITIES
Acquisition of own shares (41,213) (8,952)
Proceeds from exercise of share options 733 236
Repayment of long-term debt (100,000) -
Leases repayment (11,144) (12,575)
(151,624) (21,291)
Net cash used in financing activities
Net decrease in cash and cash equivalents (67,184) (16,590)
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF PERIOD 234,308 217,500
EFFECT OF EXCHANGE RATE ON CASH AND CASH EQUIVALENTS (589) (1,833)
CASH AND CASH EQUIVALENTS AS OF THE END OF PERIOD 166,535 199,077
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END QRTFZLLFZFLBFBBRecent news on Nexxen International
See all newsRCS - Nexxen International - Nexxen Inaugural Investor Day on May 22, 2025
AnnouncementRCS - Nexxen International - Stock Listing & Trading Structure Changes Reminder
AnnouncementREG - Nexxen International - Share buyback-transaction in own shares
AnnouncementREG - AIM Nexxen International - Cancellation - Nexxen International Limited
AnnouncementREG - Nexxen International - Share buyback-transaction in own shares
Announcement