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Nexxen International Ltd on Monday reaffirmed its guidance for the full year, following a solid first quarter in which the company’s loss narrowed on increased revenue and lower costs.
For the three months ended March 31, the Tel Aviv-based advertising technology company reported a pretax loss of $7.1 million, narrowed from a $14.4 million loss in the first quarter of 2023.
Revenue rose 3.8% to $74.4 million from $71.7 million a year prior.
Programmatic revenue reached a record $65.6 million in the quarter, up from $62.5 million.
Adjusted earnings before interest, tax, depreciation and amortisation increased 34% to $11.9 million from $8.9 million.
Nexxen’s diluted earnings per share swung to $0.01 from a loss of $0.03.
Total operating costs for the first quarter dropped 6.2% to $66.4 million from $70.8 million.
Nexxen also repaid its $99.1 million long-term debt in full during the quarter.
With the resulting increased liquidity, Nexxen said it intends to prioritise capital allocation on share repurchases, ‘strategic internal growth’ as well as other business needs.
In early May, the company launched a $50 million share repurchase programme, set to run until November 1 or once the maximum amount has been reached.
Once completed, Nexxen said it intends to evaluate the potential for further buybacks.
Ofer Druker, chief executive officer at Nexxen, said: ‘Positioned as a go-to strategic partner at the forefront of the TV and video AdTech ecosystems, Nexxen is poised to capitalize on a growing opportunity in an improving market.’
Nexxen also reaffirmed its guidance for the full-year.
In 2024, the company anticipates an ex-TAC contribution, excluding traffic acquisition costs, of between $340 and $345 million, compared to $314.2 million in 2023.
Full-year adjusted Ebitda is also expected to reach around $100 million, a 20% jump from $83.2 million.
Shares in Nexxen were up 4.7% at 236.03 pence each in London on Monday afternoon.
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