Nexxen pays down debt pile after record revenue

New York-based ad tech firm Nexxen said it had paid down a long-standing $100m (£76.4m) debt pile as it swung to profit and posted record revenue in the most recent quarter.

The company, which has a listing on London’s AIM and the Nasdaq, reported an operating profit of $6.4m (£4.9m) in the three months ended 30 June, up 180 per cent from the loss of $8m (£6.1m) recorded in the same period last year. Net revenue rose to $83.1m (£63m) over the same period, ahead of analyst forecasts.

Adjusted earnings before interest, taxation, depreciation and amortization also rose by 29 per cent year-over-year to $38.7m (£30m).

In a statement to markets, Nexxen said the haul had enabled it to repay its outstanding debts fully. Net cash as of 30 June sat at $151.9m (£116m), alongside $90m (£69m) undrawn on the company’s revolving credit facility.

The Nasdaq-listed group noted better sales execution, scaling CTV partnerships and improved market conditions for the bumper set of results.

Shares are up over 40 per cent this year to date.

Ofer Druker, chief executive officer, said: “Our platform’s differentiated products are enabling customers to maximize reach, returns and efficiency, while also generating growing multi-solution partnership traction with industry leaders.

“We are confident in our positioning to accelerate growth and long-term market share gains and are pleased to reaffirm our full year guidance.”

Nexxen also revealed plans to cut the size of its Board from eleven to nine members on Thursday. Executive director Sagi Niri and and non-exec Rebekah Brooks will step down, with Niri continuing to serve as the firm’s chief financial officer.