Azerion publishes Interim Unaudited Financial Results Q3 2024 and Year to Date Q3 2024

Strong Platform efficiency driving development

Highlights of Q3 2024

In Q3 2024 we’ve not solely elevated our revenues but in addition continued to enhance and develop our portfolio of shoppers, applied sciences and partnerships; 

• Elevated shopper spend generated € 124.8 million of revenues, up 22.6% Yr on Yr.
• Signed 115 new publishers and related 4 extra SSPs and 6 DSPs to develop our digital audiences throughout Europe and the Americas.
• Continued supply on the product roadmap together with increasing our CTV, DOOH and Audio promoting providing for manufacturers and publishers while enhancing model security and management throughout the Platform. 
• Launch of Azerion Podcast Internet hosting Platform and Audio Adserver, unlocking extra income streams within the quick rising digital audio promoting phase. 
• Entered a brand new partnership with Captify in July to speed up the ability of Search Intelligence, accelerating patrons’ entry to audiences derived from open net search knowledge and empowering manufacturers with cookieless activation in France and Italy.
• Efficiently accomplished the position of extra bonds for an quantity of € 50 million beneath Azerion’s current Senior Secured Callable Floating Price Bond framework of € 300 million.

Publish Q3 2024 Highlights

More and more beneficial market circumstances for partnerships and acquisitions present alternatives for Azerion to proceed its development into 2025. 

• We introduced the acquisition of Goldbach Austria GmbH in November, one of many foremost digital and linear promoting brokers within the DACH area. Goldbach’s experience in DOOH, linear TV, CTV, and show promoting will amplify Azerion’s choices throughout the DACH area. Completion of the transaction is topic to regulatory approval by the Austrian Federal Competitors Authority. Within the 12 months ended September 2024, Goldbach Austria generated promoting income of roughly € 26 million.

• We now have constructed a powerful pipeline of actionable partnership and acquisition alternatives. On this context, Azerion has mandated Pareto Securities AB and Arctic Securities AB to conduct a sequence of fixed-income investor conferences and topic to, inter alia, market circumstances a subsequent bond subject might comply with utilising some or all the capability out there of as much as € 85 million out of the Firm’s already current Senior Secured Callable Floating Price Bond framework of € 300 million with ISIN NO0013017657.  

Chosen KPIs

Monetary Outcomes – Azerion Group N.V.

in thousands and thousands of €

¹⁾2023 figures for Premium Video games include outcomes of the social playing cards recreation portfolio that was divested in Q3 2023. For detailed cut up of Premium Video games outcomes please confer with respective part beneath.

Message from the CEO 

“We’re happy with the efficiency of our enterprise mannequin throughout Q3, with the Platform and Premium Video games segments each delivering income development of over 20% in comparison with the identical interval final 12 months, excluding the divested social card video games portfolio. Importantly, we strengthened our native connections with advertisers and publishers and delivered important innovation via our product and know-how roadmap, creating new income streams and enhancing our capacity to succeed in focused audiences at scale. We invested additional in our cookieless options via the partnership with Captify, onboarding their gross sales groups in France and Italy, while increasing our stock in rising channels corresponding to DOOH via the partnership with MyAdbooker. Earlier in November, we introduced the acquisition of Goldbach Austria GMBH, opening new doorways for development, innovation, and impactful promoting alternatives in Austria and advancing our strategic targets within the wider DACH area.

With beneficial market dynamics, we see rising alternatives to speed up our development via strategic partnerships and acquisitions and have developed a powerful pipeline of actionable alternatives to execute on. We subsequently intend to conduct a sequence of investor conferences to discover additional funding of these alternatives via the debt markets.”

– Umut Akpinar

Monetary overview

Income

Q3 2024

Income for the quarter amounted to € 124.8 million, up 22.6% from € 101.8 million in Q3 2023 excluding the social card video games portfolio divested in Q3 2023, primarily pushed by greater promoting spend throughout the Platform Section, significantly in Direct Gross sales and the combination of earlier acquisitions. Income for the quarter was up 15.0% from € 108.5 million in Q3 2023 together with the income from the social card video games portfolio of € 6.7 million in Q3 2023.

YTD Q3 2024

Income for YTD Q3 2024 amounted to € 383.2 million, up 21.7% from € 314.9 million in YTD Q3 2023 excluding the social card video games portfolio divested in Q3 2023, once more primarily pushed by greater promoting spend throughout the Platform Section, significantly in Direct Gross sales and the combination of previous acquisitions. Income was up 11.7% from € 343.2 million in YTD Q3 2023 together with the income from the social card video games portfolio of € 28.3 million YTD Q3 2023.

Earnings 

Q3 2024

Adjusted EBITDA for the quarter was € 17.7 million in comparison with € 16.2 million in Q3 2023 excluding the divested social card video games portfolio, a rise of 9.3% primarily pushed by improved efficiency of Premium Video games, particularly metaverse titles as a result of launch of Habbo Resort Origins and product growth throughout the social on line casino titles, and price financial savings and efficiencies from the combination of earlier acquisitions. Adjusted EBITDA for Q3 2024 was down (3.3)% from € 18.3 million in Q3 2023 together with the contribution from the social card video games portfolio of € 2.1 million in Q3 2023.

The working revenue for the quarter amounted to € 0.1 million, in comparison with a revenue of € 2.2 million in Q3 2023 (excluding acquire on the sale and the results of the social card video games portfolio of € 75.1 million), primarily because of a one-off enhance in working bills in Q3 2024 associated to the renegotiation of contingent consideration phrases for one of many acquisitions (€ 2.9 million) and a good worth acquire on contingent consideration for earlier acquisitions in Q3 2023 (€ 2.0 million) that’s absent in Q3 2024, offset by the improved efficiency of Premium Video games described above, and price financial savings and efficiencies from the combination of earlier acquisitions.

YTD Q3 2024

Adjusted EBITDA in YTD Q3 2023 was € 45.0 million in comparison with € 35.8 million in YTD Q3 2023 excluding the divested social card video games portfolio, a rise of 25.7% pushed by greater promoting spend throughout the Platform Section and improved efficiency of Premium Video games, particularly metaverse titles as a result of launch of Habbo Resort Origins and product growth throughout the social on line casino titles, value financial savings and efficiencies from the combination of earlier acquisitions and a acquire on acquisition associated earn-outs of € 1.6 million. Adjusted EBITDA in YTD Q3 2024 was down (1.1)% from € 45.5 million in YTD Q3 2023 together with the contribution from the social card video games portfolio of € 9.7 million in YTD Q3 2023.

The working loss in YTD Q3 2023 amounted to € (9.5) million, in comparison with a lack of € (14.3) million in YTD Q3 2023 (excluding acquire on the sale and the results of the social card video games portfolio of € 81.0 million), pushed by elevated Platform income and contribution from Direct gross sales, improved efficiency of Premium Video games, particularly metaverse titles as a result of launch of Habbo Resort Origins and product growth throughout the social on line casino titles, efficiencies from optimisation and consolidation efforts, and however the one-off enhance in working bills associated to the settlement of a industrial dispute and renegotiation of contingent consideration phrases for one of many acquisitions.

Money movement

Q3 2024

Money movement from working actions in Q3 2024 was an outflow of € (11.4) million, primarily because of actions in web working capital reflecting a lower in commerce and different payables of € (40.9) million and a lower in commerce and different receivables of € 18.9 million, € (7.8) million paid on curiosity and € (0.8) paid in earnings tax, partly offset by working revenue after changes. Money movement from investing actions was an influx of € 2.0 million, primarily as a result of receipt of deferred consideration for the sale of the social card video games portfolio in quantity of € 11.6 million, partly offset by funds for intangible belongings of € (4.3) million and web money outflow on acquisition of subsidiaries of € (5.2) million. Money movement from financing actions was an influx of € 45.9 million, primarily because of web proceeds within the quantity of € 48.2 million (web of transaction prices) from extra bonds positioned beneath the prevailing Senior Secured Callable Floating Price Bond framework offset by repayments of exterior borrowings and the principal portion of lease liabilities amounting in complete to € (2.3) million.

YTD Q3 2024

Money movement from working actions in YTD Q3 2024 was an outflow of € (3.0) million, primarily because of actions in web working capital reflecting a lower in commerce and different payables of € (37.3) million and a lower in commerce and different receivables of € 27.4 million, € (18.3) million paid on curiosity and € (3.0) paid in earnings tax, partly offset by working revenue after changes. Money movement from investing actions was an outflow of € (18.6) million, primarily due funds for intangible belongings of € (13.8) million and web money outflow on acquisition of subsidiaries of € (16.0) million, partly offset by the receipt of web deferred consideration for the sale of social card video games portfolio in quantity of € 11.2 million. Money movement from financing actions was an influx of € 49.4 million, primarily because of web proceeds from borrowings of € 57.6 million offset by repayments of exterior borrowings and the principal portion of lease liabilities amounting in complete to € (8.0) million.

Capex

Azerion capitalises growth prices associated to the inner growth of belongings, a core exercise to assist innovation in its platform. These prices primarily relate to builders’ time dedicated to the event of the platform, video games and different new options. In Q3 2024 Azerion capitalised € 3.8 million, equal to 14.3% (Q3 2023: € 3.9 million, equal to 16.2%) of gross personnel prices excluding restructuring provision expense. In YTD Q3 2024 Azerion capitalised € 11.4 million, equal to fifteen.0% (YTD Q3 2023: € 14.1 million, equal of 17.5%) of gross personnel prices excluding restructuring provision expense.

Monetary place and borrowing 

Internet interest-bearing debt^*) amounted to € 177.7 million as at 30 September 2024, primarily comprising the excellent bond mortgage with a nominal worth of € 215 million (a part of a complete € 300 million framework) and lease liabilities with a steadiness of € 17.1 million much less the money and money equivalents place of € 68.3 million.

^*)As outlined within the Phrases & Situations of the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657. Please additionally confer with the Definitions part and the notes of this Interim Report for extra info.

Platform Section

Our Platform phase consists of our digital promoting actions, AAA Sport Distribution (previously known as e-commerce), Informal Sport Distribution (being the operation and distribution of informal video games) and Azerion Sports activities. The Platform phase generates Income primarily by displaying digital commercials in each recreation and common content material, in addition to promoting and distributing AAA video games. Advertisers are serviced via two fashions: i) Direct gross sales, which contain a direct engagement between Azerion’s industrial groups and advertisers or their companies within the placement of digital commercials, and ii) Automated public sale gross sales wherein promoting stock is bought via the open market. Platform can be built-in with components of our Premium Video games phase, leveraging inter-segment synergies.

Chosen enterprise highlights in Q3 2024 embrace:

• Expanded our Digital-Out-of-Residence (“DOOH”) promoting via the combination of MyAdbooker into Azerion’s DSP, via which Azerion will assist native advertisers and companies in France, The Netherlands and Belgium entry unique high-impact DOOH stock providing a robust new dimension to their programmatic media methods.
• Launched Generative AI Contextual resolution in Market, a strong system that gives correct and dependable classification of net content material, enabling simpler campaigns and curated offers for our companions.
• Enhanced our Demand Facet Platform including new CTV and Set-High Field localised in-home granular focusing on for improved geographic viewers identification.
• Improved our programmatic open public sale capabilities for audio, enabling advertisers higher entry to extremely partaking podcasts, radio, music and extra.
• Introduced higher model security and management to advertisers and publishers via launch of Youngster-Secure Market in collaboration with Beeswax and built-in DoubleVerify’s verification options in Azerion’s SSP. 
• Our B2B Sport Key distributor Genba, expanded its community of AAA and boutique writer companions averaging 175 related studios in Q3 2024, a rise of 11% from 157 in Q3 2023 rising its catalogue of fashionable video games accessible to etailer companions.  
• Azerion Sports activities expanded into a brand new space of sport signing with the nationwide Premier Hockey League of the Netherlands, signed a further 3 golf equipment to its white-label fan engagement app, now totalling 26 golf equipment (18 in Q3 2023), and launched in-app digital sports activities collectibles to reward the golf equipment’ most loyal followers.
• Azerion strengthened its informal video games distribution portfolio throughout Q3 2024, including 419 new video games and 15 new writer companions. 

Platform – Chosen Monetary KPIs

Monetary outcomes – Platform

In thousands and thousands of €

Complete Platform Income of € 110.9 million in Q3 2024, in comparison with € 90.8 million in Q3 2023, a rise of twenty-two.1% because of elevated Income from the Promoting platform significantly in Direct gross sales and resilient AAA Video games Distribution efficiency. Complete Platform Income of € 344.1 million in YTD Q3 2024, a rise of 23.0% in comparison with € 279.7 million YTD Q3 2023, primarily because of development in promoting income from Direct gross sales, and the combination of earlier acquisitions.

Promoting Platform Income of € 92.4 million in Q3 2024, a rise of roughly 26.1% in comparison with € 73.3 million in Q3 2023, primarily pushed by elevated Direct gross sales because of integration and consolidation advantages from previous acquisitions.  In Q3 2024, Azerion’s Direct gross sales contributed roughly 70% of Platform promoting income, as in comparison with roughly 60% in Q3 2023, with the steadiness supplied by Automated public sale gross sales. 

In Q3 2024, AAA Sport Distribution generated Income of € 18.5 million as in comparison with € 17.5 million in Q3 2023, a rise of roughly 5.7% because of sturdy efficiency of B2B gross sales of high-profile AAA recreation releases pushed by promotional gross sales enhance and new eTailer companions added in Q3 2024. Robust income efficiency was pushed by the brand new releases and promotional gross sales of fashionable titles. In Q3 2024, AAA Sport Distribution Income represented 16.7% of complete Platform Income, as in comparison with 19.3% in Q3 2023. 

Complete Platform Working Lack of € (0.9) million in Q3 2024, in comparison with Working Revenue of € 4.0 million in Q3 2023, a lower largely because of a one-off enhance in working bills in Q3 2024 associated to the renegotiation of contingent consideration phrases for one of many acquisitions (€ 2.9 million) and a good worth acquire on contingent consideration for earlier acquisitions in Q3 2023 (€ 2.0 million) that’s absent in Q3 2024. Complete Platform Working Lack of € (8.9) million in YTD Q3 2024, in comparison with € (7.6) million in YTD Q3 2023, a lower largely because of a one-off enhance in working bills associated to the settlement of a industrial dispute in Q2 2024 (€ 3.0 million) and renegotiation of contingent consideration phrases for one of many acquisitions, offset by elevated Platform income and contribution from Direct gross sales and efficiencies from optimisation and consolidation efforts.

Complete Platform Adjusted EBITDA of € 13.1 million in Q3 2024, in comparison with € 13.5 million in Q3 2023, a lower of (3.0)% largely as a result of mixture of Promoting Platform Income, elevated share of Direct Gross sales offset by the lower-margin income from Hawk acquisition. Complete Platform Adjusted EBITDA of € 36.2 million in YTD Q3 2024, in comparison with € 30.4 million in YTD Q3 2023, a rise of 19.1% primarily because of development in promoting income from Direct gross sales and the combination of earlier acquisitions.

Promoting – Chosen Operational KPIs

Promoting – Operational KPIs

¹⁾Common gross income per million processed advert requests throughout Azerion Platform is calculated by dividing gross promoting income (processed by Azerion’s promoting public sale and monetisation platforms) by one million commercial requests processed by Azerion’s promoting public sale and monetisation platforms.

Observe: Each Promoting Operational KPIs now embrace knowledge regarding the Hawk acquisition as of This autumn 2023.

The Common Digital Adverts bought per Month elevated to 12.6 billion in Q3 2024 from 11.9 billion in Q3 2023, a rise of 5.9%, reflecting the Platform’s demand aspect development as a result of integration of previous acquisitions and the consolidation of Azerion’s monetisation know-how right into a single scalable media shopping for platform. 

The Common Gross Income per Million Processed Advert Requests throughout the Azerion Platform in Q3 2024 was € 23.4, in comparison with € 25.4 in Q3 2023, reflecting a small decline 12 months on 12 months as we proceed to steadiness and optimise between quantity and effectivity.   

Premium Video games Section

From This autumn 2023, the Premium Video games phase consists of social on line casino video games and metaverse video games. Azerion accomplished the sale of its social card video games portfolio to Playtika Holding Corp. on 28 August 2023 and its contribution to the Premium Video games phase ceased at that date. The phase generates income primarily by providing customers the power to make in-game purchases for further options and digital items to reinforce their gameplay expertise. This phase goals to stimulate social interplay amongst gamers and construct communities, providing an prolonged worth proposition to advertisers and producing cross-selling alternatives with the Platform phase. 

Chosen Q3 2024 enterprise highlights

• Partnered with Everi, one of many largest suppliers of know-how options for casinos, to empower their Social On line casino Model Tremendous Jackpot Slot providing with Whow’s established know-how and recreation mechanics bringing revolutionary gaming to the on line casino trade. 
• Check launch of recent cellular portrait social on line casino software to additional interact audiences on the go rising each day energetic customers and in-game purchases.
• Created new immersive quests and rolled out second hand retailer in Resort Hideaway, encouraging social journey gameplay and permitting customers to buy their favorite add-ons at a reduction additional monetising the sport.  

Premium Video games – Chosen Monetary KPIs

Monetary outcomes – Premium Video games

In thousands and thousands of € 

Income of € 13.9 million in Q3 2024, as in comparison with € 11.0 million in Q3 2023 (excluding social card video games), a rise of 26.4%, primarily pushed by the elevated variety of paying customers in metaverse titles as a result of launch of Habbo Resort Origins mixed with new social casinos sale options, improved low cost methods and elevated companion consumer acquisition spend, offset by the sale of Woozworld at the beginning of January 2024 (totaling € 0.4 million Income in Q3 2023). Income was € 39.1 million in YTD Q3 2024, as in comparison with € 35.2 million in YTD Q3 2023 (excluding social card video games), a rise of 11.1%, pushed by social on line casino and metaverse efficiency and the elements beforehand described for Q3 2024, partly offset by and the sale of Woozworld at the beginning of January 2024 (totaling € 1.3 million Income in YTD Q3 2023).

Adjusted EBITDA of € 4.6 million in Q3 2024, in comparison with € 2.7 million in Q3 2023 (excluding social card video games), a rise of 70.4%, primarily pushed by improved efficiency from metaverse titles as a result of launch of Habbo Resort Origins, consolidation and integration efforts leading to improved operational efficiency and product growth throughout the social on line casino and different metaverse titles. Adjusted EBITDA of € 8.8 million in YTD Q3 2024, as in comparison with € 5.4 million (excluding social card video games), a rise of 63.0% in comparison with YTD Q3 2023 reflecting the elevated efficiency of our metaverse titles as a result of launch of Habbo Resort origins, consolidation and integration efforts leading to improved operational efficiency and product growth throughout the social on line casino and different metaverse titles offset by the shift in new consumer technology to cellular in Azerion’s social on line casino atmosphere which has greater development potential over time, but in addition greater transaction prices as in comparison with net.

Working Revenue of € 1.0 million in Q3 2024, in comparison with Working Lack of € (1.8) million in Q3 2023 (excluding social card video games), a rise primarily pushed by the explanations outlined within the previous paragraph. Working Lack of € (0.6) million in YTD Q3 2024, in comparison with € (6.7) million in YTD Q3 2023 (excluding social card video games), an enchancment as soon as once more reflecting the developments described for Adjusted EBITDA above.

Premium Video games – Chosen Operational KPIs

Premium Video games – Operational KPIs

• The Common Time in Sport per Day (min) elevated by 6% in Q3 2024 to 84.7 minutes per day as in comparison with 80.0 minutes per day in Q3 2023 as a result of ongoing growth of recent options and occasions in social on line casino and metaverse titles.
• The Common Each day Lively Customers (DAUs) decreased by (5)% in Q3 2024 to 239.4 in comparison with Q3 2023 of 252.0, primarily because of decrease consumer acquisition spend and elevated concentrate on higher engagement with greater paying customers.  
• The Common Income per Each day Lively Person (ARPDAU) elevated by 30% in Q3 2024 to € 0.57 in comparison with Q3 2023 of € 0.44, pushed by improved in-game gross sales mechanics in social on line casino, options and occasions and continued advantages from the profitable launch of Habbo Resort Origins in Q2 2024 which progressively normalised throughout the quarter. 

Given the sale of the social playing cards portfolio in August 2023, the chosen operational KPIs for all quarters have been revised to now not include outcomes from the social card video games portfolio.  

Outlook

The steerage beforehand supplied stays unchanged:

• Income for full 12 months 2024 is anticipated to be within the vary of roughly € 540 million to € 560 million, with annual development thereafter within the medium time period anticipated to be roughly 10%. 

• Adjusted EBITDA for full 12 months 2024 is anticipated to be within the vary of roughly € 75 million to € 80 million, with annual Adjusted EBITDA margin thereafter within the medium time period anticipated to be within the vary of roughly 14% to 16%.

Replace on M&A and Funding Technique

With beneficial market dynamics, Azerion sees more and more enticing alternatives to speed up its development via additional strategic partnerships and acquisitions. At this stage, the very best conviction elements of the pipeline symbolize annual combination income of between € 255 and € 285 million and combination adjusted EBITDA within the vary of roughly € 20 to € 25 million pre-synergies. The exact mixture of alternatives to be executed upon and the timing for execution on them is topic to regular M&A contingencies, together with availability of funding for these alternatives, and can be executed in accordance with the phrases and circumstances of the Senior Secured Callable Floating Price Bonds. 

On this context, Azerion has mandated Pareto Securities AB and Arctic Securities AB to conduct a sequence of fixed-income investor conferences and topic to, inter alia, market circumstances a Subsequent Bond subject might comply with utilising some or all the capability out there of as much as € 85 million out of the Firm’s already current Senior Secured Callable Floating Price Bond framework of € 300 million with ISIN NO0013017657. Proceeds from the Subsequent Bond subject shall be used to finance common company functions of the Firm, together with capital expenditure, acquisitions and transaction prices.

Different info

Curiosity-bearing debt

Curiosity-bearing debt

in thousands and thousands of €

References to bond phrases within the desk above confer with the phrases as outlined within the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657

Reconciliation of Revenue / (loss) for the interval to Adjusted EBITDA  

Reconciliation of Revenue / (loss) for the interval to Adjusted EBITDA – Q3

in thousands and thousands of €

¹⁾Previously, all modifications to the truthful worth of liabilities for contingent concerns had been adjusted out of EBITDA on the premise that these impacts had been acquisition associated. Administration has determined to stop these changes the place the consideration is contingent upon the achievement of monetary targets, as a result of these modifications in truthful worth are offsetting reverse actions already included within the operational efficiency of the acquired entity. This modification has been utilized prospectively. 

Further notes:

• Acquisition bills for Q3 2024 consists of € 2.9 million regarding renegotiation of contingent consideration phrases for one of many acquisitions.

Reconciliation of Revenue / (loss) for the interval to Adjusted EBITDA – YTD

in thousands and thousands of €

¹⁾Previously, all modifications to the truthful worth of liabilities for contingent concerns had been adjusted out of EBITDA on the premise that these impacts had been acquisition associated. Administration has determined to stop these changes the place the consideration is contingent upon the achievement of monetary targets, as a result of these modifications in truthful worth are offsetting reverse actions already included within the operational efficiency of the acquired entity. This modification has been utilized prospectively. 

Further notes:

Acquisition bills for YTD Q3 2024 consists of € 7.7 million regarding:

• € 4.8 million in Q2 2024 on one-off settlement of a industrial dispute and contingent consideration truthful worth loss (non-operational efficiency goal) regarding a earlier acquisition, and 
• € 2.9 million in Q3 2024 on renegotiation of contingent consideration phrases for one of many acquisitions.

Working bills

Breakdown of Working bills

in thousands and thousands of €

¹⁾Personnel prices in Q3 2024 embrace Hawk, which was acquired in This autumn 2023.

²⁾The one-off settlement is said to settlement of a industrial dispute.

Condensed consolidated assertion of revenue or loss and different complete earnings

Condensed consolidated assertion of revenue or loss and different complete earnings

In thousands and thousands of €

¹⁾Earn-out outcomes have been reclassified from Different bills to Different features and losses

Condensed consolidated assertion of monetary place

Condensed consolidated assertion of monetary place

in thousands and thousands of €

Condensed consolidated assertion of money movement

Condensed consolidated assertion of money movement

In thousands and thousands of €

Definitions

Adjusted EBITDA represents Working Revenue / (Loss) excluding depreciation, amortisation, impairment of non-current belongings, restructuring and acquisition associated bills and different objects at administration discretion, principally these assessed as extraordinary objects or non-recurring objects which aren’t according to the atypical course of enterprise.

Adjusted EBITDA Margin represents Adjusted EBITDA as a proportion of Income.

Common gross income per million processed advert requests throughout Azerion Platform is calculated by dividing gross promoting income (processed by Azerion’s promoting public sale and monetisation platforms) by one million commercial requests processed by Azerion’s promoting  public sale and monetisation platforms.

Common time in recreation per day measures what number of minutes per day, on common, the gamers of Premium Video games spend within the video games. This demonstrates their engagement with the video games, which generates extra alternatives to develop the ARPDAU.

Common DAUs represents common each day energetic customers, which is the variety of distinct customers per day averaged throughout the related interval.

ARPDAU represents Common Income per Each day Lively Person, which is income per interval divided by days within the interval divided by common each day energetic customers in that interval and represents common per consumer in-game purchases for the interval.

Monetary Indebtedness represents as outlined within the phrases and circumstances of the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657 any indebtedness in respect of:

• monies borrowed or raised, together with Market Loans;

• the quantity of any legal responsibility in respect of any Finance Leases;

• receivables bought or discounted (aside from any receivables to the extent they’re bought on a non-recourse foundation);

• any quantity raised beneath every other transaction (together with any ahead sale or buy settlement) having the industrial impact of a borrowing;

• any spinoff transaction entered into in reference to safety in opposition to or profit from fluctuation in any fee or worth (and, when calculating the worth of any spinoff transaction, solely the mark to market worth shall be taken under consideration, supplied that if any precise quantity is due because of a termination or a close-out, such quantity shall be used as a substitute);

• any counter indemnity obligation in respect of a assure, indemnity, bond, standby or documentary letter of credit score or every other instrument issued by a financial institution or monetary establishment; and

• (with out double counting) any assure or different assurance in opposition to monetary loss in respect of a kind referred to within the above paragraphs (1)-(6).

Internet Curiosity-bearing debt as outlined within the phrases and circumstances of the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657 means the combination interest-bearing Monetary Indebtedness much less money and money equivalents (together with any money from a Subsequent Bond Difficulty standing to the credit score on the Proceeds Account or one other escrow association for the advantage of the Bondholders) of the Group in accordance with the Accounting Ideas (for the avoidance of doubt, excluding any Bonds owned by the Issuer, ensures, financial institution ensures, Subordinated Loans, any claims subordinated pursuant to a subordination settlement on phrases and circumstances passable to the Agent and interest-bearing Monetary Indebtedness borrowed from any Group Firm) as such phrases are outlined within the phrases and circumstances of the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657.

Working bills are outlined as the combination of personnel prices and different bills as reported within the assertion of revenue or loss and different complete earnings. Extra particulars on the reporting of value by nature will be discovered within the printed annual monetary statements of 2023.

Working Revenue / (Loss) represents income much less prices of providers and supplies, working bills, depreciation and amortisation and different features and losses.

Disclaimer and Cautionary Statements

This communication incorporates info that qualifies as inside info throughout the that means of Article 7(1) of the EU Market Abuse Regulation.

This communication might embrace forward-looking statements. All statements aside from statements of historic details are, or could also be deemed to be, forward-looking statements. Ahead-looking statements embrace, amongst different issues, statements in regards to the potential publicity of Azerion to market dangers and statements expressing administration’s expectations, beliefs, estimates, forecasts, projections and assumptions. Phrases and expressions corresponding to goals, ambition, anticipates, believes, might, estimates, expects, targets, intends, might, milestones, aims, outlook, plans, initiatives, dangers, schedules, seeks, ought to, goal, will or different related phrases or expressions are sometimes used to establish forward-looking statements. Ahead-looking statements are statements of future expectations which can be based mostly on administration’s present expectations and assumptions and contain identified and unknown dangers, uncertainties and different elements which can be tough to foretell and that might trigger the precise outcomes, efficiency or occasions to vary materially from future outcomes expressed or implied by such forward-looking statements contained on this communication. Readers shouldn’t place undue reliance on forward-looking statements.

Any forward-looking statements mirror Azerion’s present views and assumptions based mostly on info presently out there to Azerion’s administration. Ahead-looking statements communicate solely as of the date they’re made and Azerion doesn’t assume any obligation to replace or revise such statements because of new info, future occasions or different info, besides as required by legislation.

The interim monetary outcomes of Azerion Group N.V. as included on this communication are required to be disclosed pursuant to the phrases and circumstances of the Senior Secured Callable Floating Price Bonds ISIN: NO0013017657.

This report has not been reviewed or audited by Azerion’s exterior auditor.

Sure monetary knowledge included on this communication consist of other efficiency measures (“non-IFRS monetary measures”), together with Adjusted EBITDA. The non-IFRS monetary measures, together with comparable IFRS measures, are utilized by Azerion’s administration to guage the enterprise efficiency and are helpful to buyers. They will not be corresponding to equally titled measures as offered by different firms, nor ought to they be thought-about as a substitute for the historic monetary outcomes or different indicators of Azerion Group N.V.’s money movement based mostly on IFRS. Although the non-IFRS monetary measures are utilized by administration to evaluate Azerion Group N.V.’s monetary place, monetary outcomes and liquidity and most of these measures are generally utilized by buyers, they’ve vital limitations as analytical instruments, and the recipients shouldn’t think about them in isolation or as an alternative to evaluation of Azerion Group N.V.’s monetary place or outcomes of operations as reported beneath IFRS.

For all definitions and reconciliations of non-IFRS monetary measures please additionally confer with http://www.azerion.com/investors.

This report might include forward-looking non-IFRS monetary measures. The Firm is unable to offer a reconciliation of those forward-looking non-IFRS monetary measures to probably the most comparable IFRS monetary measures as a result of sure info wanted to reconcile these non-IFRS monetary measures to probably the most comparable IFRS monetary measures relies on future occasions a few of that are outdoors the management of Azerion. Furthermore, estimating such IFRS monetary measures with the required precision needed to offer a significant reconciliation is extraordinarily tough and couldn’t be completed with out unreasonable effort. Non-IFRS monetary measures in respect of future intervals which can’t be reconciled to probably the most comparable IFRS monetary measure are calculated in a way which is in line with the accounting insurance policies utilized in Azerion Group N.V.’s consolidated monetary statements.

This communication doesn’t represent a suggestion to promote, or a solicitation of a suggestion to purchase, any securities or every other monetary devices.

Contact

Investor Relations: ir@azerion.comMedia relations: press@azerion.com