Nexxen reports mixed year amid ad market downturn

The AIM-traded firm, previously known as Tremor International, said the contribution ex-TAC - a key revenue metric - was $90.5m in the fourth quarter, down 12% compared to the same period in 2022.

However, for the full year, the metric showed a slight 1% increase to $314.2m.

Connected TV (CTV) revenue also fell in the fourth quarter and throughout the full year, impacted by factors including the SAG-AFTRA strike, reduced market spending, and consumers shifting to on-the-go streaming.

Adjusted EBITDA declined $83.2m from $14.9m year-on-year due to the integration of Amobee into Nexxen's operations and the lower customer spending environment of 2023.

Despite the challenges, Nexxen said it ended 2023 with net cash of $134.3m, which it intended to use these for internal growth, share repurchases, and potential future acquisitions.

Chief executive officer Ofer Druker framed 2023 as a year of transition, highlighting the completion of the Amobee integration and the creation of an enhanced data-driven platform.

“In 2024, we are continuing to focus on expanding our base of end-to-end customers leveraging us for multiple enterprise tech and data solutions, growing our data licensing revenue, and expanding our streaming, TV, and agency partnerships to drive growth and increased profitability, against a macroeconomic backdrop we are cautiously optimistic is showing signs of improvement,” he said.

“With the integration of Amobee now complete, we believe we can shift our primary investment focus towards innovation and our share repurchase program to generate long-term value for our customers and shareholders.”

At 1318 GMT, shares in Nexxen International were up 2.39% at 214p.

Reporting by Josh White for Sharecast.com.