Nexxen reports strong third-quarter growth

15th Nov 2024 10:51

(Sharecast News) - Advertising technology platform specialist Nexxen International reported a robust set of third-quarter results on Friday, highlighted by record connected TV (CTV) revenue and significant gains in profitability.

The AIM-traded company also raised its full-year adjusted EBITDA guidance while reaffirming its contribution ex-TAC forecast.

In the quarter, Nexxen achieved a 12% year-on-year increase in contribution ex-TAC to $85.5m, driven by a 52% rise in CTV revenue, which reached $29.7m and accounted for 36% of programmatic revenue.

Programmatic revenue itself rose 10% on the year to $81.6m, representing 90% of Nexxen's total revenue.

Adjusted EBITDA for the quarter grew 49% to $31.6m, boosting the adjusted EBITDA margin on a contribution ex-TAC basis to 37%, compared to 28% in the third quarter of 2023.

For the nine months ended 30 September, Nexxen posted record contribution ex-TAC of $238.3m, up 7% year-on-year, with programmatic revenue rising 6% to $225.7m and CTV revenue increasing 17% to $76.7m.

Adjusted EBITDA for the period rose 37% year-over-year to $70.3m, representing a 29% margin on a contribution ex-TAC basis, up from 23% in the prior year.

As of 30 September, Nexxen had a net cash position of $166.5m, $90m undrawn from its revolving credit facility, and no long-term debt.

"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," said chief executive officer Ofer Druker.

"Over the last several quarters we've clarified our value proposition while improving our sales efforts and operational efficiency, which together drove record third-quarter results."

"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."

At 1031 GMT, shares in Nexxen International were up 7.36% at 313.5p.

Reporting by Josh White for Sharecast.com.