\nAdjusted EBITDA margin %<\/td>\n | 14.9%<\/td>\n | 15.4%<\/td>\n | 11.5%<\/td>\n | 15.2%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 1<\/sup>)<\/sup> Reported figures relate to Azerion Group N.V. following the merger with Azerion Holding B.V.. See \u201cBackground information\u201d for more details<\/p>\nCo-CEO <\/strong>Umut<\/strong> Akpinar<\/strong> said:<\/strong><\/p>\n\u201cThis quarter we continued improving our Platform and expanding our geographical presenc<\/em>e to gain market share and harvest the benefits of scale in 2023. We focused on helping our clients achieve better results for their campaigns through differentiated, <\/em>engaging<\/em> and innovative ad formats. We continued integrating our past acquisitions and op<\/em>timising <\/em>costs, and<\/em> expect to generate annualised savings of over EUR 10 million in 2023. This strong performance has allowed us to achieve our financial targets for 2022 and gives us confidence to update our guidance for 2023 and beyond.\u201d<\/em><\/p>\nCo-CEO Atilla <\/strong>Aytekin<\/strong> said:<\/strong><\/p>\n\u201cIn 2022 we completed strategic acquisitions and simplified our reporting structure. Looking ahead, we will focus on growing our Platform capabilities, whilst balancing our growth with a prudent financial framework. We will rema<\/em>in actively working on our M&A pipeline and as we target a capital structure that is more aligned with market practice, we announced the intention to cancel <\/em>the majority of<\/em> our treasury shares. In addition, we will also increase our focus on deleveraging o<\/em>ur balance sheet in 2023<\/em>.<\/em> \u201d<\/em><\/p>\nFinancial overview<\/u><\/strong><\/p>\nNet revenue<\/strong><\/p>\nNet revenue for the quarter amounted to EUR 148.8 million, an increase of 17.8%, compared to Q4 2021, due to growth in the Platform segment. Full year 2022 Net revenue was EUR 452.6 million, compared to EUR 308.1 million in 2021.<\/p>\n Earnings<\/strong><\/p>\nAdjusted EBITDA was EUR 22.1 million for the quarter compared to EUR 19.4 million in Q4 2021, an increase of 13.9%, driven by stronger contributions from the Platform segment, partially offset by lower Adjusted EBITDA from the Premium Games segment. Full year 2022 Adjusted EBITDA was EUR 52.1 million, compared to EUR 46.7 million\u00a0in 2021.<\/p>\n The operating profit for the quarter amounted to EUR 8.9 million, compared to a profit of EUR 5.4 million in Q4 2021, reflecting various factors including increased Net revenue, contributions of acquisitions and reduced operating expenses.<\/p>\n Cash flow<\/strong><\/p>\nCash flow from operating activities in Q4 2022 was an inflow of\u00a0 EUR 20.0 million, Cash flow from investing activities was an outflow of EUR 14.8 million, mainly due to acquisitions. Cash flow from financing activities totalled an outflow of\u00a0 EUR 3.1 million. Full year 2022 cash flow from operating activities amounted to EUR 44.9 million, compared to EUR 24.0 million in 2021.<\/p>\n Cap<\/strong>ex<\/strong><\/p>\nAzerion capitalizes development costs related to asset development, a core activity to support innovation in its platform. These costs primarily relate to developers\u2019 time devoted to the development of games, platforms, and other new features. In Q4 2022 Azerion capitalized EUR 5.5 million, equivalent to 18.0% of gross personnel costs, which is broadly in line with previous quarters.<\/p>\n Financial position and financing<\/strong><\/p>\nOur net interest-bearing debt*<\/sup>)<\/sup> amounted to EUR 176.1 million as of 31 December 2022, mainly comprising our outstanding bond loan with a nominal value of EUR 200 million (part of a total EUR 300 million framework) and lease liabilities with a balance of EUR 19.2 million less the cash and cash equivalents position of EUR 50.9 million.<\/p>\nTax posit<\/strong>ions\u00a0<\/strong><\/p>\nDeferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Management\u2019s assessment is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits. At the moment of publication of this preliminary unaudited financial results report, the assessment of current and deferred tax positions have not been fully finalised and might be revised ahead of the publication of the Annual Report 2022.<\/p>\n *<\/sup>)<\/sup> As defined in section 1.1 of the Terms & Conditions of the Senior Secured Callable Fixed Rate Bonds ISIN: SE0015837794. Please also refer to the Definitions section and the notes of this Interim Report for more information.<\/p>\nSegment information<\/u><\/strong><\/p>\nPlatform<\/strong><\/p>\nOur Platform segment includes advertising, casual games distribution and e-Commerce, which are fully integrated through our technology. It generates Net 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 \u2013 Selected Financial <\/strong>KPIs<\/strong><\/p>\n\n\n\nFinancial results (EURm)<\/strong><\/td>\nQ4<\/strong><\/td>\nFY<\/strong><\/td>\n<\/tr>\n\nPlatform<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong><\/td>\n<\/tr>\n\nNet revenue<\/td>\n | 124.7<\/td>\n | 101.4<\/td>\n | 363.5<\/td>\n | 234.5<\/td>\n<\/tr>\n | \nGross profit<\/td>\n | 41.0<\/td>\n | 34.0<\/td>\n | 121.4<\/td>\n | 78.0<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/td>\n | 7.4<\/td>\n | 2.7<\/td>\n | (6.5)<\/td>\n | 2.3<\/td>\n<\/tr>\n | \nAdjusted EBITDA<\/td>\n | 17.0<\/td>\n | 11.5<\/td>\n | 35.0<\/td>\n | 26.6<\/td>\n<\/tr>\n | \nNet revenue growth %<\/td>\n | 23.0%<\/td>\n | <\/td>\n | 55.0%<\/td>\n | <\/td>\n<\/tr>\n | \nGross profit margin %<\/td>\n | 32.9%<\/td>\n | 33.5%<\/td>\n | 33.4%<\/td>\n | 33.3%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth %<\/td>\n | 47.8%<\/td>\n | <\/td>\n | 31.6%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin %<\/td>\n | 13.6%<\/td>\n | 11.3%<\/td>\n | 9.6%<\/td>\n | 11.3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Platform <\/strong>Net revenue was EUR 124.7 million in Q4 2022, an increase of 23.0% compared to Q4 2021, mainly due to acquisitions as well as organic growth.<\/p>\nAdjusted EBITDA was EUR 17.0 million in Q4 2022, increasing by 47.8% compared to Q4 2021, primarily driven by higher Net revenue and increased platform efficiency.<\/p>\n Results benefited from increased user engagement levels, with users spending more time playing casual games, as well as enhanced monetisation across the portfolio. In addition, we have grown our casual games distribution portfolio during Q4 2022, adding approximately 497 new titles and 493 new publisher partners.<\/p>\n Advertising – Selected Operational <\/strong>KPIs<\/strong>\u00a0<\/strong><\/p>\n\n\n\n<\/td>\n | Q4 2021<\/strong><\/td>\nQ1 2022<\/strong><\/td>\nQ2 2022<\/strong><\/td>\nQ3 2022<\/strong><\/td>\nQ4 2022<\/strong><\/td>\n<\/tr>\n\nAvg. Digital Ads Sold per Month (bn)<\/strong><\/td>\n10.9<\/td>\n | 9.9<\/td>\n | 9.5<\/td>\n | 9.6<\/td>\n | 10.7<\/td>\n<\/tr>\n | \nAdvertising auction platform (bn)<\/td>\n | 4.5<\/td>\n | 4.1<\/td>\n | 4.3<\/td>\n | 4.3<\/td>\n | 5.4<\/td>\n<\/tr>\n | \nPublisher monetisation services (bn)<\/td>\n | 6.4<\/td>\n | 5.8<\/td>\n | 5.2<\/td>\n | 5.3<\/td>\n | 5.3<\/td>\n<\/tr>\n | \nAvg. Gross Revenue per Million Optimised Ad Requests from advertising auction platform (EUR)<\/strong><\/td>\n12.9<\/td>\n | 8.6<\/td>\n | 9.1<\/td>\n | 11.2<\/td>\n | 16.7<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- The Average number of digital ads sold per month<\/strong> (paid impressions) decreased to 10.7 billion from 10.9 billion in Q4 2021, reflecting an increase of the average ad price.<\/li>\n
- The Average gross revenue per million processed ad requests<\/strong> was EUR 16.7 in Q4 2022, compared to EUR EUR 12.9 in Q4 2021, demonstrating our ability to manage our advertising auction platform efficiently and profitably, even against the continued challenging macro-economic environment.<\/li>\n<\/ul>\n
Average digital ads sold per month do not include volumes from past acquisitions that are not yet fully integrated. As of this quarter, the reported numbers include the following previous acquisitions: advertising auction platforms Improve Digital, Admoove, Delta Projects and Infinia, as well as publisher monetisation services Headerlift, Pubgalaxy, Sublime, Inskin, Strossle, Keymobile, Madvertise and Quantum.<\/p>\n Average gross revenue per million ad requests has been revised to exclude ad requests that are rejected before entering our advertising auction platform Improve Digital. As a result this KPI has been renamed as Average gross revenue per million processed ad requests.<\/p>\n Premium Games<\/strong><\/p>\nOur 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, offering an extended value proposition to advertisers and generating cross-selling opportunities with the Platform segment.<\/p>\n Premium Games \u2013 Selected Financial <\/strong>KPIs<\/strong><\/p>\n\n\n\nFinancial results (EURm)<\/strong><\/td>\nQ4<\/strong><\/td>\nFY<\/strong><\/td>\n<\/tr>\n\nPremium Games<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong><\/td>\n<\/tr>\n\nNet revenue<\/td>\n | 24.1<\/td>\n | 25.0<\/td>\n | 89.1<\/td>\n | 73.6<\/td>\n<\/tr>\n | \nGross profit<\/td>\n | 12.1<\/td>\n | 16.4<\/td>\n | 44.9<\/td>\n | 42.8<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/td>\n | 1.8<\/td>\n | 2.6<\/td>\n | 2.1<\/td>\n | 6.0<\/td>\n<\/tr>\n | \nAdjusted EBITDA<\/td>\n | 5.1<\/td>\n | 7.8<\/td>\n | 17.1<\/td>\n | 19.8<\/td>\n<\/tr>\n | \nNet revenue growth %<\/td>\n | (3.6)%<\/td>\n | <\/td>\n | 21.1%<\/td>\n | <\/td>\n<\/tr>\n | \nGross profit margin %<\/td>\n | 50.2%<\/td>\n | 65.6%<\/td>\n | 50.4%<\/td>\n | 58.2%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth %<\/td>\n | (34.6)%<\/td>\n | <\/td>\n | (13.6)%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin %<\/td>\n | 21.2%<\/td>\n | 31.2%<\/td>\n | 19.2%<\/td>\n | 26.9%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n Premium Games <\/strong>Net revenue in Q4 2021 benefited from the ongoing commission related to secondary market sales of the Habbo NFTs launched in September 2021. Excluding this impact, Net revenue of EUR 24.1 million in Q4 2022 was at a similar level as in Q4 2021.<\/p>\nAdjusted EBITDA was EUR 5.1 million in Q4 2022, a decrease of 34.6% compared to Q4 2021, reflecting lower Net revenue, absence of NFT trail commission margin and higher marketing and user acquisition costs.<\/p>\n Premium Games \u2013 Selected Operational <\/strong>KPIs<\/strong>\u00a0<\/strong><\/p>\n\n\n\n<\/td>\n | Q4 2021<\/strong><\/td>\nQ1 202<\/strong>2<\/strong><\/td>\nQ2 2022<\/strong><\/td>\nQ3 2022<\/strong><\/td>\nQ4 2022<\/strong><\/td>\n<\/tr>\n\nAvg. Time in Game per Day (min)<\/strong><\/td>\n80<\/td>\n | 81<\/td>\n | 80<\/td>\n | 80<\/td>\n | 79<\/td>\n<\/tr>\n | \nAvg. <\/strong>DAUs<\/strong> (thousands)<\/strong><\/td>\n599<\/td>\n | 607<\/td>\n | 569<\/td>\n | 556<\/td>\n | 559<\/td>\n<\/tr>\n | \nAvg. ARPDAU (EUR)<\/strong><\/td>\n0.42<\/td>\n | 0.38<\/td>\n | 0.40<\/td>\n | 0.42<\/td>\n | 0.45<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- The Average time in game per day<\/strong> from our Premium Games players remained at a similar level as in Q4 2021.<\/li>\n
- The Average daily active users (<\/strong>DAUs<\/strong>) <\/strong>decreased by almost 7% compared to Q4 2021, reflecting a normalisation of Covid-19-induced elevated levels of users.<\/li>\n
- The Average revenue per da<\/strong>ily active user (ARPDAU)<\/strong> increased by more than 7% compared to Q4 2021, primarily driven by new features and events that enhanced theuser gameplay experience.<\/li>\n<\/ul>\n
Other<\/strong><\/p>\nReporting segment Other contained in Q4 an operating loss of EUR 0.3 million, mainly related to De-SPAC expenses (FY 2022: a loss of EUR 124.6 million, mainly related to De-SPAC related expenses not allocated to the Platform or Premium Games segments). Those costs impact the reported operating profit\/loss, but are removed from Adjusted EBITDA.<\/p>\n Outlook<\/u><\/strong><\/p>\nNet revenue for 2023 is expected to be around EUR 560 million, with expected annual growth thereafter of around 15% in the medium term. This outlook does not include the impact of any material acquisitions or divestments.<\/p>\n Adjusted EBITDA for 2023 is expected to be at least EUR 75 million, with annual Adjusted EBITDA margin thereafter expected to grow and be in the range of 14% to 16% in the medium term. The expected improvement in Adjusted EBITDA margin is expected to be primarily driven by gross profit margin optimisation, cost efficiencies and overall benefits of scale as the Azerion platform grows. This outlook does not include the impact of any material acquisitions or divestments.<\/p>\n Other information<\/u><\/strong><\/p>\nInterest Bearing Debt<\/strong> \u00a0<\/strong><\/p>\n\n\n\nInterest Bearing Debt in millions of EUR<\/strong><\/td>\n31 December 2022<\/strong><\/td>\n31 December 2021<\/strong><\/td>\n<\/tr>\n\nTotal non-current indebtedness<\/td>\n | 214.3<\/td>\n | 213.3<\/td>\n<\/tr>\n | \nTotal current indebtedness<\/td>\n | 12.8<\/td>\n | 11.5<\/td>\n<\/tr>\n | \nTotal financial indebtedness<\/strong><\/td>\n227.1 <\/strong><\/td>\n224.8 <\/strong><\/td>\n<\/tr>\n\nDeduct Zero interest bearing loans<\/td>\n | (0.1)<\/td>\n | (0.7)<\/td>\n<\/tr>\n | \nInterest Bearing Debt<\/strong><\/td>\n227.0 <\/strong><\/td>\n224.1 <\/strong><\/td>\n<\/tr>\n\nLess: Cash and cash equivalents<\/td>\n | (50.9)<\/td>\n | (35.3)<\/td>\n<\/tr>\n | \nNet <\/strong>Interest Bearing<\/strong> Debt\u00a0<\/strong><\/td>\n176.1 <\/strong><\/td>\n188.8 <\/strong><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |