LONDON (ShareCast) - (Sharecast News) - Advertising technology specialist Nexxen International reported a robust financial performance for the second quarter on Thursday, marked by record highs in several key areas.
The AIM-traded company said it achieved a 27% year-on-year increase in adjusted EBITDA, reaching $26.8m, with an improved adjusted EBITDA margin of 32% on a contribution ex-TAC basis, up from 26% in the second quarter of 2023.

Nexxen reported record second-quarter contribution ex-TAC of $83.1m, up 4% year-on-year.

Programmatic revenue reached a record $78.6m, a 3% increase, while connected TV revenue surged 14% to $28.2m, now representing 36% of programmatic revenue, up from 32% in the prior year.

The company's video revenue also grew, accounting for 74% of programmatic revenue.

Financially, Nexxen strengthened its position with a net cash balance of $151.9m as of 30 June, and fully repaid its $100m long-term debt.

Additionally, the company launched a $50m share repurchase programme in the second quarter, following the completion of a $20m buyback earlier in the quarter.

For the first half, Nexxen also reported record results, with contribution ex-TAC and programmatic revenue both up 4% year-on-year.

The company reaffirmed its full-year 2024 financial guidance, expecting contribution ex-TAC between $340m and $345m, and adjusted EBITDA of about $100m.

Operational highlights included the launch of the Nexxen Data Platform and a unified identity graph, enhancing audience targeting and opening new data licensing opportunities.

The company also expanded its partnerships, including a new collaboration with United Airlines' Kinective Media and an ACR data partnership with The Trade Desk.

Nexxen said it was continuing to innovate, particularly in the areas of generative AI and machine learning, with plans to accelerate investments in those technologies through 2025.

In corporate governance, Nexxen announced that Rebekah Brooks and Sagi Niri were stepping down from the board of directors, reducing the board size to nine members.

It said Niri would continue as chief financial officer, aligning the board composition with industry best practices.

"In the second quarter, we generated record contribution ex-TAC, programmatic revenue and connected TV revenue while increasing adjusted EBITDA by 27% year-over-year, benefiting from increased momentum post-rebrand, better sales execution, scaling connected TV partnerships and improved market conditions," said chief executive officer Ofer Druker.

"Following the completed integration of Amobee, we've excitingly returned to our product innovation roots, launching Nexxen Data Platform, which has already been adopted by several important partners and unlocked new data licensing and commerce media opportunities."

Druker said the platform's differentiated products were enabling customers to maximise 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."

At 1103 BST, shares in Nexxen International were up 5.74% at 304p.

Reporting by Josh White for Sharecast.com.

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