\nAdjusted EBITDA margin, %<\/td>\n | 6,2%<\/td>\n | 5,9%<\/td>\n | 13,2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n C<\/b>o-CEO Umut Akpinar said:<\/b><\/p>\n \u201cThis quarter demonstrated our capacity to deliver results while completing our listing on Euronext Amsterdam. Our financial performance continued to improve and, despite macroeconomic volatility, we remain confident in our guidance to deliver at least EUR 450 million revenue this year. We will continue integrating our acquisitions and further drive volumes across our owned and operated platform.\u201d<\/i><\/p>\n Co-CEO Atilla Aytekin said:<\/b><\/p>\n \u201cListing Azerion was an important milestone for our company, welcomed by our clients and partners, who increasingly approach us with business propositions. Our market continues to consolidate and we remain actively working on our acquisition funnel to complement our organic growth with more volume, capabilities and technology.<\/i> As we continue to mature our M&A pipeline, we will consider a variety of options to fund acquisitions, including raising equity.\u201d<\/i><\/p>\n Financial overview Q1 2022<\/b><\/p>\n Revenue<\/b><\/p>\n Revenue for the quarter amounted to EUR 94.4 million, an increase of EUR 48.9 million, or 107.3%, compared to Q1 2021. This reflects higher revenue from both the Platform and Premium Games segments.<\/p>\n Earnings<\/b><\/p>\n We delivered EUR 5.9 million adjusted EBITDA for the quarter compared to EUR 2.7 million in Q1 2021, an increase of EUR 3.2 million.<\/p>\n The loss before tax amounted to EUR 17.6 million compared to a loss of EUR 5.1 million in Q1 2021. Non-recurring items amounted to a net charge of EUR 9.8 million, mostly related to early exercise of share appreciation rights.<\/p>\n Cash flow\u00a0<\/b><\/p>\n Our cash flow from operating activities in Q1 2022 was an inflow of EUR 6.5 million. Cash flow from investing activities was an outflow of EUR 8.2 million, mainly due to capital expenditures. Cash flow from financing activities totalled an inflow of EUR 9.0 million, mainly reflecting a capital contribution from Azerion Group N.V.<\/p>\n Capex\u00a0<\/b><\/p>\n We capitalize development costs related to asset development, a core activity to support innovation in our platform. These costs primarily relate to developers\u2019 time devoted to the development of games, platforms, and other new features. In Q1 2022 we capitalized EUR 3.9 million, equivalent to 17.5% of personnel costs.<\/p>\n Acquisitions<\/b><\/p>\n During Q1 2022 we announced the acquisition of Infinia, which completed in April 2022.<\/p>\n Financial position and financing<\/b><\/p>\n Our net interest-bearing debt amounted to EUR 185.3 million as at 31 March 2022, mainly comprising our outstanding bond loan with a nominal value of EUR 200 million (part of an in total EUR 300 million framework) and lease liabilities with a balance of EUR 19.0 million less the cash and cash equivalents position of EUR 42.6 million.<\/p>\n Segment information<\/b><\/p>\n Platform\u00a0<\/b><\/p>\n Our Platform segment includes casual games distribution, advertising and e-Commerce, which are fully integrated through our technology. It generates revenue mainly by displaying digital advertisements in both game and non-game content, as well as selling and distributing AAA games through our e-commerce channels. Platform is also integrated with our Premium Games segment, leveraging inter-segment synergies.<\/p>\n Platform Financial Highlights\u00a0<\/b><\/p>\n\n\n\nFinancial results (EURm)<\/b><\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nPlatform<\/b><\/td>\n | Q1 2022<\/b><\/td>\n | Q1 2021<\/b><\/td>\n<\/tr>\n\nNet Revenue<\/td>\n | 72,5<\/td>\n | 34,2<\/td>\n<\/tr>\n | \nCOGS<\/td>\n | (50,2)<\/td>\n | (24,3)<\/td>\n<\/tr>\n | \nGross profit<\/b><\/td>\n | 22,3<\/b><\/td>\n | 9,9<\/b><\/td>\n<\/tr>\n\nOperating & Other Expenses<\/td>\n | (33,8)<\/td>\n | (13,2)<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/b><\/td>\n | (11,5)<\/b><\/td>\n | (3,3)<\/b><\/td>\n<\/tr>\n\nEBITDA<\/b><\/td>\n | (6,4)<\/b><\/td>\n | 0,7<\/b><\/td>\n<\/tr>\n\nAdjusted EBITDA\u00a0<\/b><\/td>\n | 2,0<\/b><\/td>\n | 1,2<\/b><\/td>\n<\/tr>\n\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nRevenue growth, %<\/td>\n | 111,8%<\/td>\n | <\/td>\n<\/tr>\n | \nGross margin, %<\/td>\n | 30,8%<\/td>\n | 29,1%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth, %<\/td>\n | 64,6%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin, %<\/td>\n | 2,7%<\/td>\n | 3,5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Financial data for Q1 2021 has been revised to reflect reporting segments adopted as of Q3 2021<\/i><\/p>\n Platform revenue was EUR 72.5 million in Q1 2022, an increase of 111.8% compared to Q1 2021, mainly due to acquisitions. Gross margin remained at a similar level as in Q1 2021. Adjusted EBITDA was EUR 2.0 million in Q1 2022, an increase of 64.6% compared to Q1 2021.<\/p>\n Besides the impact of acquisitions, the improved financial performance reflects increased quality and quantity of the casual games distribution portfolio, achieved through exclusive partnerships and organic influx of content providers. New quality content and continuous adaptation of existing titles contributed to an increase in revenue compared to Q1 last year. During Q1 2022 we added approximately 745 new titles to our casual games distribution portfolio. In addition, we added 20 new publisher partners to our network to facilitate growth in key markets.<\/p>\n Advertising – Selected KPIs<\/b><\/p>\n\n\n\nAdvertising Selected KPIs<\/b><\/td>\n | Q1 2022<\/b><\/td>\n | Q4 2021<\/b><\/td>\n | Q3 2021<\/b><\/td>\n | Q2 2021<\/b><\/td>\n | Q1 2021<\/b><\/td>\n<\/tr>\n\nAvg. Digital Ads Sold per Month (bn)<\/b><\/td>\n | 4.4<\/td>\n | 4.9<\/td>\n | 4.3<\/td>\n | 3.2<\/td>\n | 2.9<\/td>\n<\/tr>\n | \nAvg. Gross Revenue per Million Ad Requests (EUR)<\/b><\/td>\n | 6.10<\/td>\n | 9.73<\/td>\n | 7.14<\/td>\n | 6.72<\/td>\n | 3.66<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- Avg. Digital Ads Sold per Month:<\/b> the average number of paid impressions per month increased to 4.4 billion from 2.9 billion in Q1 2021, reflecting significant growth in the advertising business.<\/li>\n
- Avg. Gross Revenue per Million Ad Requests:<\/b> Average gross revenue per million ad requests was EUR 6.10 in Q1 2022, compared to EUR 3.66 in Q1 2021.<\/li>\n<\/ul>\n
Premium Games<\/b><\/p>\n Our Premium Games segment includes social games and metaverse, comprising nine premium game titles. The segment generates revenue mainly by offering users the ability to make in-game purchases for extra features and virtual goods to enhance their gameplay experience. The aim of this segment is to stimulate social interaction among players and build communities.<\/p>\n Premium Games Financial Highlights<\/b><\/p>\n\n\n\nFinancial results (EURm)<\/b><\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nPremium Games<\/b><\/td>\n | Q1 2022<\/b><\/td>\n | Q1 2021<\/b><\/td>\n<\/tr>\n\nNet Revenue<\/td>\n | 21,8<\/td>\n | 11,3<\/td>\n<\/tr>\n | \nCOGS<\/td>\n | (11,3)<\/td>\n | (6,3)<\/td>\n<\/tr>\n | \nGross profit<\/b><\/td>\n | 10,5<\/b><\/td>\n | 5,0<\/b><\/td>\n<\/tr>\n\nOperating & Other Expenses<\/td>\n | (11,0)<\/td>\n | (4,8)<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/b><\/td>\n | (0,6)<\/b><\/td>\n | 0,1<\/b><\/td>\n<\/tr>\n\nEBITDA<\/b><\/td>\n | 2,5<\/b><\/td>\n | 1,3<\/b><\/td>\n<\/tr>\n\nAdjusted EBITDA\u00a0<\/b><\/td>\n | 3,9<\/b><\/td>\n | 1,5<\/b><\/td>\n<\/tr>\n\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nRevenue growth, %<\/td>\n | 93,7%<\/td>\n | <\/td>\n<\/tr>\n | \nGross margin, %<\/td>\n | 48,0%<\/td>\n | 44,2%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth, %<\/td>\n | 151,9%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin, %<\/td>\n | 17,7%<\/td>\n | 13,6%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Financial data for Q1 2021 has been revised to reflect reporting segments adopted as of Q3 2021<\/i><\/p>\n Premium Games revenue was EUR 21.8 million in Q1 2022, an increase of 93.7% compared to Q1 2021. Gross margin increased to 48.0% from 44.2% in Q1 2021. Adjusted EBITDA was EUR 3.9 million in Q1 2022, an increase of 151.9% compared to Q1 2021.<\/p>\n The improved financial results reflect the acquisition of Whow Games and lower user acquisition costs. Results were also positively impacted by stronger performance of Governor of Poker 3 and Hotel Hideaway driven by a combination of new features, virtual goods and improved events in Hotel Hideaway. We also promoted our Premium Games with TV commercials in France for Governor of Poker 3, integrated Teletubbies-branded avatars in Hideaway and Habbo, and improved first-time user experience in Governor of Poker 3.<\/p>\n Results also benefited from the expansion of Web 3.0 with the integration of the Habbo Avatars NFT collection, which offers unique playable Avatars, airdrops towards owners and the feature to sell unique in-game usable NFT furniture, in the Habbo metaverse.<\/p>\n Premium Games \u2013 Selected KPIs\u00a0<\/b><\/p>\n\n\n\nPremium Games Selected KPIs<\/b><\/td>\n | Q1 2022<\/b><\/td>\n | Q4 2021<\/b><\/td>\n | Q3 2021<\/b><\/td>\n | Q2 2021<\/b><\/td>\n | Q1 2021<\/b><\/td>\n<\/tr>\n\nAvg. Time in Game per Day (min)<\/b><\/td>\n | 82<\/td>\n | 80<\/td>\n | 79<\/td>\n | 79<\/td>\n | 79<\/td>\n<\/tr>\n | \nAvg. DAUs (thousands)<\/b><\/td>\n | 604<\/td>\n | 599<\/td>\n | 616<\/td>\n | 693<\/td>\n | 696<\/td>\n<\/tr>\n | \nAvg. ARPDAU (EUR)<\/b><\/td>\n | 0.38<\/td>\n | 0.42<\/td>\n | 0.37<\/td>\n | 0.34<\/td>\n | 0.33<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Note: Whow Games included for the full historical period for comparability purposes<\/i><\/p>\n\n- Avg. Time in Game per Day:<\/b> time spent playing our Premium Games continued to grow steadily, mainly due to improved first time user experience and continuous improvement of live operations.<\/li>\n
- Avg. DAUs:<\/b> Daily Active Users increased by 1% compared to Q4 2021, following the reset of number of users post Covid-19 elevated levels.<\/li>\n
- Avg. ARPDAU:<\/b> Average Revenue per Daily Active User decreased compared to Q4 2021, due to seasonality. Compared to Q1 2021, ARPDAU increased from EUR 0.33 to EUR 0.38, primarily driven by improved live operations with better events and promotions.<\/li>\n<\/ul>\n
Background information: Azerion Holding B.V. and Azerion Group N.V.\u00a0<\/b><\/p>\n Azerion Holding B.V. is the main holding subsidiary of Azerion Group N.V., formerly known as EFIC1. The Azerion Holding B.V. Interim Unaudited Financial Results Q1 2022 are released as required by the terms and conditions of the listed Senior Secured Callable Fixed Rate Bonds (ISIN: SE0015837794).<\/p>\n The first consolidated financial results for the post business combination Azerion Group N.V. will be the half year 2022 interim financial results, further details for which will follow closer to the time.<\/p>\n Condensed Consolidated financial statements (unaudited)<\/b><\/p>\n The condensed consolidated financial statements have been prepared in accordance with IFRS.<\/p>\n \n\n\nCondensed consolidated statement of profit or loss and other comprehensive income (EURm)<\/strong><\/td>\n\u00a0<\/strong><\/td>\nQ1 2022<\/strong><\/td>\nQ1 2021<\/strong><\/td>\n<\/tr>\n\n\u00a0<\/em><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nRevenue<\/strong><\/td>\n<\/td>\n | 94,4<\/strong><\/td>\n45,5<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Costs of services & materials<\/td>\n | <\/td>\n | (61,5)<\/td>\n | (30,6)<\/td>\n<\/tr>\n | \nGross profit<\/strong><\/td>\n\u00a0<\/strong><\/td>\n32,8<\/strong><\/td>\n15,0<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Personnel costs<\/td>\n | <\/td>\n | (18,6)<\/td>\n | (8,9)<\/td>\n<\/tr>\n | \n<\/td>\n | Depreciation<\/td>\n | <\/td>\n | (1,6)<\/td>\n | (1,0)<\/td>\n<\/tr>\n | \n<\/td>\n | Amortization<\/td>\n | <\/td>\n | (6,5)<\/td>\n | (3,5)<\/td>\n<\/tr>\n | \n<\/td>\n | Impairment of non-current assets<\/td>\n | <\/td>\n | –<\/td>\n | –<\/td>\n<\/tr>\n | \n<\/td>\n | Other gains and losses<\/td>\n | <\/td>\n | (9,3)<\/td>\n | (0,3)<\/td>\n<\/tr>\n | \n<\/td>\n | Other expenses<\/td>\n | <\/td>\n | (8,9)<\/td>\n | (4,5)<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(12,1)<\/strong><\/td>\n(3,2)<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Finance income<\/td>\n | <\/td>\n | 0,4<\/td>\n | 0,7<\/td>\n<\/tr>\n | \n<\/td>\n | Finance costs<\/td>\n | <\/td>\n | (5,9)<\/td>\n | (2,7)<\/td>\n<\/tr>\n | \nNet finance costs<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(5,5)<\/strong><\/td>\n(2,0)<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Share in profit \/ (loss) of joint venture<\/td>\n | <\/td>\n | –<\/td>\n | –<\/td>\n<\/tr>\n | \nProfit \/ (loss) before tax<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(17,6)<\/strong><\/td>\n(5,1)<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Income Tax expense<\/td>\n | <\/td>\n | (0,7)<\/td>\n | (0,1)<\/td>\n<\/tr>\n | \nProfit \/ (loss) for the period<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(18,3)<\/strong><\/td>\n(5,2)<\/strong><\/td>\n<\/tr>\n\nAttributable to:<\/em><\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n<\/td>\n | Owners of the company<\/td>\n | <\/td>\n | (18,0)<\/td>\n | (4,7)<\/td>\n<\/tr>\n | \n<\/td>\n | Non-controlling interest<\/td>\n | <\/td>\n | (0,2)<\/td>\n | (0,4)<\/td>\n<\/tr>\n | \n\u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n<\/td>\n | <\/td>\n<\/tr>\n | \nProfit \/ (loss) for the period<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(18,3)<\/strong><\/td>\n(5,2)<\/strong><\/td>\n<\/td>\n<\/tr>\n | \n\u00a0<\/em><\/td>\n\u00a0<\/em><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n\u00a0\u00a0\u00a0\u00a0 Exchange difference on translation of foreign operations<\/td>\n | <\/td>\n | (0,4)<\/td>\n | 4,5<\/td>\n | <\/td>\n<\/tr>\n | \n\u00a0\u00a0\u00a0\u00a0 Remeasurement of net defined benefit liability<\/td>\n | <\/td>\n | 0,0<\/td>\n | 0,1<\/td>\n | <\/td>\n<\/tr>\n | \n\u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n\u00a0<\/strong><\/td>\n<\/td>\n<\/tr>\n | \nTotal comprehensive income for the period<\/strong><\/td>\n\u00a0<\/strong><\/td>\n(18,6)<\/strong><\/td>\n(0,6)<\/strong><\/td>\n<\/td>\n<\/tr>\n | \nTotal comprehensive (loss) \/ income attributable to:<\/em><\/strong><\/td>\n\u00a0<\/em><\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nOwners of the company<\/td>\n | <\/td>\n | (17,9)<\/td>\n | 0,2<\/td>\n | <\/td>\n<\/tr>\n | \nNon-controlling interest<\/td>\n | <\/td>\n | (0,7)<\/td>\n | (0,8)<\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n\n\nCondensed consolidated statement of financial position (EURm)<\/strong><\/td>\n\u00a0<\/strong><\/td>\nMarch 31, 2022<\/strong><\/td>\nDecember 31, 2021<\/strong><\/td>\n<\/tr>\n\n\u00a0<\/em><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \nAssets<\/strong><\/td>\n<\/td>\n | <\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | \n<\/td>\n | Non-current assets<\/em><\/strong><\/td>\n<\/td>\n | <\/td>\n | 321,1<\/strong><\/td>\n323,6<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Intangible assets (incl. Goodwill)<\/td>\n | <\/td>\n | 262,6<\/td>\n | 264,8<\/td>\n<\/tr>\n | \n<\/td>\n | Property, plant and equipment<\/td>\n | <\/td>\n | 19,1<\/td>\n | 18,5<\/td>\n<\/tr>\n | \n<\/td>\n | Non-current financial assets<\/td>\n | <\/td>\n | 36,2<\/td>\n | 36,1<\/td>\n<\/tr>\n | \n<\/td>\n | Deferred tax asset<\/td>\n | <\/td>\n | 3,2<\/td>\n | 4,2<\/td>\n<\/tr>\n | \n<\/td>\n | Investment in joint ventures<\/td>\n | <\/td>\n | 0,0<\/td>\n | 0,1<\/td>\n<\/tr>\n | \n<\/td>\n | Current assets<\/em><\/strong><\/td>\n<\/td>\n | <\/td>\n | 131,7<\/strong><\/td>\n140,1<\/strong><\/td>\n<\/tr>\n\n<\/td>\n | Trade and other receivables<\/td>\n | <\/td>\n | 76,5<\/td>\n | 91,3<\/td>\n<\/tr>\n | \n<\/td>\n | Contract assets<\/td>\n | <\/td>\n | 11,6<\/td>\n | 12,1<\/td>\n<\/tr>\n | \n<\/td>\n | Current tax assets<\/td>\n | <\/td>\n | 1,1<\/td>\n | 1,3<\/td>\n<\/tr>\n | \n<\/td>\n | Cash and cash equivalents<\/td>\n | <\/td>\n | 42,6<\/td>\n | 35,3<\/td>\n<\/tr>\n | \nTotal assets<\/strong><\/td>\n<\/td>\n | <\/td>\n | 452,9<\/strong><\/td>\n463,7<\/strong><\/td>\n<\/tr>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |