15th Nov 2024 08:53
(Alliance News) - Nexxen International Ltd on Friday announced plans to delist from London amid improved earnings and raised guidance.
The Tel Aviv-based advertising technology platform intends to exchange its Nasdaq-listed ADRs to Nasdaq-listed ordinary shares and terminate the ADR facility.
Further, it plans to 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 AIM.
Nexxen said the updated trading structure can shareholders over the long term, increasing the potential to attract US investors, reducing the complexity of reporting and regulatory compliance structure, consolidating and increasing liquidity, alongside the possible inclusion in major indices.
The changes will be put to a vote at the annual general meeting on December 20.
Nexxen said Yaniv Carmi would step down from the board but remain as chief operating officer in line with best practices of Nasdaq-listed companies.
The news came as the firm, formerly known as Tremor International Ltd, reported pretax profit of USD16.0 million in the third quarter ending September, swung from a loss of USD4.0 million a year prior. Adjusted earnings before interest, taxes, depreciation and amortisation jumped 49% to USD31.6 million from USD21.3 million.
Revenue climbed 13% to USD90.2 million from USD80.1 million.
Nexxen highlighted a record third quarter contribution ex-traffic acquisition cost of USD85.5 million, up 12% year-over-year. Programmatic revenue rose 10% on-year, hitting a record of USD81.6 million, CTV revenue leapt 52% to a record USD29.7 million.
Nexxen noted CTV revenue reflected 36% of programmatic revenue, up from 26% a year ago, while programmatic revenue reflected 90% of revenue, compared to 93% before.
"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 Chief Executive Ofer Druker.
Reflecting the third quarter growth, Nexxen raised 2024 adjusted Ebitda guidance to around USD107 million from around USD100 million. This implies 29% growth from the USD83.2 million reported in 2023.
The firm reaffirmed full year 2024 contribution ex-TAC in a range of USD340 to USD345 million. Programmatic revenue is expected to total around 90% of full year revenue.
In addition, Nexxen said it expects to increase its technology, data, AI and generative AI investments in the fourth quarter and full year 2025 to further its platform and data advantages.
Shares in Nexxen were 7.2% higher at 313.00 pence each in London on Friday morning.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2024 Alliance News Ltd. All Rights Reserved.