\nAdjusted EBITDA margin, %<\/td>\n | 11.8%<\/td>\n | 21.2%<\/td>\n | 9.9%<\/td>\n | 15.0%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 1)<\/sup> 2021 financial data has been updated to reflect the allocation of head office costs to segments and 2021 audit adjustments. Refer to the “Other information” section for more information.<\/p>\nCo-CEO Umut Akpinar said:<\/strong><\/p>\n\u201cI am pleased with our continued growth on the top line, while increasing the focus on costs and improving efficiencies across our platform. We are on track to deliver at least EUR 450 million revenue this year and we will continue integrating our acquisitions and building volumes in our higher-margin products. In Q3 2021 we had a very successful sale of <\/em>NFTs<\/em> in our Habbo metaverse, which makes the numbers less comparable on a year-to-year basis.\u201d<\/em><\/p>\nCo-CEO Atilla Aytekin said:<\/strong><\/p>\n\u201cThis quarter we announced <\/em>a number of<\/em> acquisitions that add valuable capabilities to our offerings to advertisers, publishers and consumers. With a focus on profitability, we will expedite integration and related synergies and remain ready to capture opportunities in this market under consolidation. We are also excited to be hosting our first Strategy Deep Dive with the market to share insights into our organic and inorganic growth strategy.\u201d<\/em><\/p>\nFinancial overview<\/strong><\/p>\nRevenue<\/strong><\/p>\nRevenue for the quarter amounted to EUR 105.5 million, an increase of EUR 22.0 million, or 26.3%, compared to Q3 2021, boosted by Platform, partly offset by lower revenue from Premium Games.<\/p>\n Earnings<\/strong><\/p>\nWe delivered EUR 12.4 million adjusted EBITDA for the quarter compared to EUR 17.7 million in Q3 2021, a decrease of EUR 5.3 million, mainly due to lower contributions from Premium Games and the NFT pilot successfully executed in Q3 2021.<\/p>\n The operating profit amounted to EUR 0.2 million, compared to a profit of EUR 4.7 million in Q3 2021, primarily reflecting the lower contributions from Premium Games and the NFT pilot successfully executed in Q3 2021.<\/p>\n Cash flow<\/strong><\/p>\nOur cash flow from operating activities in Q3 2022 was an inflow of EUR 2.8 million. Cash flow from investing activities was an outflow of EUR 11.2 million, due to capital expenditures and acquisitions. Cash flow from financing activities totalled an inflow of EUR 13.7 million.<\/p>\n Capex<\/strong><\/p>\nWe 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 Q3 2022 we capitalized EUR 4.1 million, equivalent to 17.7% of gross personnel costs.<\/p>\n Financial position and financing<\/strong><\/p>\nOur net interest-bearing debt*<\/sup> amounted to EUR 179.1 million as at 30 September 2022, mainly comprising our outstanding bond loan with a nominal value of EUR 200.0 million (part of an in total EUR 300.0 million framework) and lease liabilities with a balance of EUR 17.9 million less the cash and cash equivalents position of EUR 44.1 million.<\/p>\nSegment information<\/p>\n Platform<\/strong><\/p>\nOur 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 \u2013 Selected Financial <\/strong>KPIs<\/strong><\/p>\n\n\n\nFinancial results (EURm)<\/strong><\/td>\nQ3<\/strong><\/td>\nYTD<\/strong><\/td>\n<\/tr>\n\nPlatform<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong>1)<\/strong><\/sup><\/td>\n2022<\/strong><\/td>\n2021<\/strong>1)<\/strong><\/sup><\/td>\n<\/tr>\n\nRevenue<\/td>\n | 84.2<\/td>\n | 57.5<\/td>\n | 238.8<\/td>\n | 133.1<\/td>\n<\/tr>\n | \nGross profit<\/td>\n | 27.4<\/td>\n | 19.3<\/td>\n | 80.4<\/td>\n | 44.1<\/td>\n<\/tr>\n | \nOperating expenses<\/td>\n | (20.5)<\/td>\n | (12.0)<\/td>\n | (67.2)<\/td>\n | (33.0)<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/td>\n | 0.6<\/td>\n | 1.5<\/td>\n | (14.0)<\/td>\n | (0.4)<\/td>\n<\/tr>\n | \nEBITDA<\/td>\n | 7.1<\/td>\n | 6.0<\/td>\n | 3.7<\/td>\n | 10.6<\/td>\n<\/tr>\n | \nAdjusted EBITDA<\/td>\n | 8.2<\/td>\n | 8.4<\/td>\n | 18.0<\/td>\n | 14.8<\/td>\n<\/tr>\n | \nRevenue growth, %<\/td>\n | 46.4%<\/td>\n | <\/td>\n | 79.4%<\/td>\n | <\/td>\n<\/tr>\n | \nGross profit margin %<\/td>\n | 32.5%<\/td>\n | 33.6%<\/td>\n | 33.7%<\/td>\n | 33.1%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth %<\/td>\n | -2.4%<\/td>\n | <\/td>\n | 21.6%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin, %<\/td>\n | 9.7%<\/td>\n | 14.6%<\/td>\n | 7.5%<\/td>\n | 11.1%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 1)<\/sup> 2021 financial data has been updated to reflect the allocation of head office costs to segments and 2021 audit adjustments. Refer to the “Other information” section for more information.<\/p>\nPlatform <\/strong>Revenue was EUR 84.2 million in Q3 2022, an increase of 46.4% compared to Q3 2021, mainly due to acquisitions as well as organic growth.<\/p>\nAdjusted EBITDA was EUR 8.2 million in Q3 2022, decreasing by 2.4% compared to Q3 2021. Higher net revenue was offset by lower gross profit margin, mainly driven by market conditions, and increased operating expenses compared to Q3 2021, primarily driven by acquisitions and ongoing investments in the platform.<\/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 Q3 2022, adding approximately 452 new titles and 415 new publisher partners.<\/p>\n Advertising – Selected Operational <\/strong>KPIs<\/strong>\u00a0<\/strong><\/p>\n\n\n\n<\/td>\n | Q3 2021<\/strong><\/td>\nQ4 2021<\/strong><\/td>\nQ1 2022<\/strong><\/td>\nQ2 2022<\/strong><\/td>\nQ3 2022<\/strong><\/td>\n<\/tr>\n\nAvg. Digital Ads Sold per Month (bn)<\/strong><\/td>\n6.9<\/td>\n | 10.9<\/td>\n | 9.9<\/td>\n | 9.5<\/td>\n | 9.6<\/td>\n<\/tr>\n | \nAdvertising auction platform (bn)<\/em><\/td>\n3.7<\/td>\n | 4.5<\/td>\n | 4.1<\/td>\n | 4.3<\/td>\n | 4.3<\/td>\n<\/tr>\n | \nPublisher monetisation services (bn)<\/em><\/td>\n3.2<\/td>\n | 6.4<\/td>\n | 5.8<\/td>\n | 5.2<\/td>\n | 5.3<\/td>\n<\/tr>\n | \nAvg. Gross Revenue per Million Accepted Ad Requests from advertising auction platform (EUR)<\/strong><\/td>\n9.9<\/td>\n | 12.9<\/td>\n | 8.6<\/td>\n | 9.1<\/td>\n | 11.2<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n- The Average number of digital ads sold per month<\/strong> (paid impressions) increased to 9.6 billion from 6.9 billion in Q3 2021, reflecting significant growth in our advertising business.<\/li>\n
- The Average gross revenue per million accepted ad requests<\/strong> was EUR 11.2 in Q3 2022, compared to EUR 9.9 in Q3 2021, demonstrating our ability to manage our advertising auction platform efficiently and profitably, even against the backdrop of challenging macro-economic environment.<\/li>\n<\/ul>\n
The numbers reported in the selected operational KPIs 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 by our platform without generating any costs. As a result this KPI has been renamed as Average gross revenue per million accepted 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.<\/p>\n Premium Games \u2013 Selected Financial <\/strong>KPIs<\/strong><\/p>\n\n\n\nFinancial results (EURm)<\/strong><\/td>\nQ3<\/strong><\/td>\nYTD<\/strong><\/td>\n<\/tr>\n\nPremium Games<\/strong><\/td>\n2022<\/strong><\/td>\n2021<\/strong>1)<\/strong><\/sup><\/td>\n2022<\/strong><\/td>\n2021<\/strong>1)<\/strong><\/sup><\/td>\n<\/tr>\n\nRevenue<\/td>\n | 21.3<\/td>\n | 26.0<\/td>\n | 65.0<\/td>\n | 48.6<\/td>\n<\/tr>\n | \nGross profit<\/td>\n | 11.1<\/td>\n | 15.4<\/td>\n | 32.8<\/td>\n | 26.4<\/td>\n<\/tr>\n | \nOperating expenses<\/td>\n | (7.6)<\/td>\n | (7.6)<\/td>\n | (21.6)<\/td>\n | (15.8)<\/td>\n<\/tr>\n | \nOperating profit \/ (loss)<\/td>\n | 0.7<\/td>\n | 3.2<\/td>\n | 0.3<\/td>\n | 3.4<\/td>\n<\/tr>\n | \nEBITDA<\/td>\n | 3.6<\/td>\n | 8.0<\/td>\n | 8.9<\/td>\n | 10.4<\/td>\n<\/tr>\n | \nAdjusted EBITDA<\/td>\n | 4.2<\/td>\n | 9.2<\/td>\n | 12.0<\/td>\n | 12.4<\/td>\n<\/tr>\n | \nRevenue growth, %<\/td>\n | -18.1%<\/td>\n | <\/td>\n | 33.7%<\/td>\n | <\/td>\n<\/tr>\n | \nGross profit margin %<\/td>\n | 52.1%<\/td>\n | 59.2%<\/td>\n | 50.5%<\/td>\n | 54.3%<\/td>\n<\/tr>\n | \nAdjusted EBITDA growth %<\/td>\n | -54.3%<\/td>\n | <\/td>\n | -3.2%<\/td>\n | <\/td>\n<\/tr>\n | \nAdjusted EBITDA margin, %<\/td>\n | 19.7%<\/td>\n | 35.4%<\/td>\n | 18.5%<\/td>\n | 25.5%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n 1)<\/sup> 2021 financial data has been updated to reflect the allocation of head office costs to segments and 2021 audit adjustments. Refer to the “Other information” section for more information.<\/p>\nPremium Games <\/strong>Revenue was EUR 21.3 million in Q3 2022, a decrease of 18.1% compared to Q3 2021. Revenue in Q3 2021 was positively impacted by the successful launch of the Habbo NFT project, impacting comparability versus Q3 2022. Excluding this impact, Revenue was at a similar level as in Q3 2021, primarily driven by increased average revenue per daily user, partly offset by a decline in the average number of daily users.<\/p>\nAdjusted EBITDA was EUR 4.2 million in Q3 2022, a decrease of 54.3% compared to Q3 2021. The high margin NFT activities were a significant contributor to the Adjusted EBITDA in Q3 2021, affecting comparability. Excluding this impact, Adjusted EBITDA reflected higher operating expenses, partly offset by slightly improved gross profit margin.<\/p>\n Premium Games \u2013 Selected Operational <\/strong>KPIs<\/strong>\u00a0<\/strong><\/p>\n\n\n\n<\/td>\n | Q3 2021<\/strong><\/td>\nQ4 2021<\/strong><\/td>\nQ1 2022<\/strong><\/td>\nQ2 2022<\/strong><\/td>\nQ3 2022<\/strong><\/td>\n<\/tr>\n\nAvg. Time in Game per Day (min)<\/strong><\/td>\n79<\/td>\n | 80<\/td>\n | 81<\/td>\n | 80<\/td>\n | 80<\/td>\n<\/tr>\n | \nAvg. <\/strong>DAUs<\/strong> (thousands)<\/strong><\/td>\n616<\/td>\n | 599<\/td>\n | 607<\/td>\n | 567<\/td>\n | 556<\/td>\n<\/tr>\n | \nAvg. ARPDAU (EUR)<\/strong><\/td>\n0.37<\/td>\n | 0.42<\/td>\n | 0.38<\/td>\n | 0.40<\/td>\n | 0.42<\/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 Q3 2021.<\/li>\n
- The Average daily active users (<\/strong>DAUs<\/strong>) <\/strong>decreased by almost 10% compared to Q3 2021, reflecting a normalisation of Covid-19-induced elevated levels of users, partly offset by an inflow of new users in France, following our user acquisition campaign.<\/li>\n
- The Average revenue per daily active user (ARPDAU)<\/strong> increased by over 13% compared to Q3 2021, primarily driven by new features and events that enhanced the user gameplay experience, including for example the Love Island\/ITV Studios partnership in Hotel Hideaway.<\/li>\n<\/ul>\n
Outlook<\/strong><\/p>\nOn track to deliver Revenue of at least EUR 450 million for the full financial year 2022, with Adjusted EBITDA expected to be over EUR 50 million.<\/p>\n Other information<\/strong><\/p>\nInterest Bearing Debt \u00a0<\/strong><\/p>\n\n\n\nInterest Bearing Debt in millions of EUR<\/strong><\/td>\n30 September 2022<\/strong><\/td>\n31 December 2021<\/strong><\/td>\n<\/tr>\n\nTotal non-current indebtedness<\/td>\n | 227.9<\/td>\n | 213.3<\/td>\n<\/tr>\n | \nTotal current indebtedness<\/td>\n | 10.6<\/td>\n | 11.5<\/td>\n<\/tr>\n | \nTotal financial indebtedness<\/strong><\/td>\n238.5 <\/strong><\/td>\n224.8 <\/strong><\/td>\n<\/tr>\n\nDeduct Zero interest bearing loans<\/td>\n | (0.3)<\/td>\n | (0.7)<\/td>\n<\/tr>\n | \nInterest Bearing Debt<\/strong><\/td>\n238.2 <\/strong><\/td>\n224.1 <\/strong><\/td>\n<\/tr>\n\nLess: Cash and cash equivalents<\/td>\n | (44.1)<\/td>\n | (35.3)<\/td>\n<\/tr>\n | \nNet <\/strong>Interest Bearing<\/strong> Debt<\/strong><\/td>\n194.1 <\/strong><\/td>\n188.8 <\/strong><\/td>\n<\/tr>\n\nOf which permitted Net Interest Bearing Debt under the bond terms<\/td>\n | 179.1<\/td>\n | 188.8<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n References to the bond terms in the table above refer to the senior secured callable fixed rate bond ISIN: SE0015837794<\/em><\/p>\nFinancial indebtedness increased by EUR 13.7 million from 31 December 2021, mainly due to the reclassification of subordinated convertible loans from other equity instruments to borrowings. These subordinated convertible loans include an equity redemption option of outstanding loan balances, in addition to a cash redemption option. Under the modified terms, the discretion to redeem the loans in equity or cash lies with Azerion Holding B.V. Following the de-SPAC transaction, the loans are redeemable by issuing shares in the capital of Azerion Group N.V. Since these loans are no longer redeemable by issuing shares in the capital of Azerion Holding B.V., they have been reclassified from other equity instruments.<\/p>\n Reconciliation of net income to Adjusted EBITDA\u00a0<\/strong><\/p>\n\n\n\nReconciliation of net income to Adjusted EBITDA in millions of EUR<\/strong><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |