Azerion publishes Interim Unaudited Financial Results Q2 and H1 2026

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Azerion publishes Interim Unaudited Financial Results Q2 and H1 2026 Azerion Group NV Thu, August 27, 2026 at 1:30 AM EDT 60 min read AZRN.AS 3 year cost saving and synergy projects yielded record Q2 EBITDA Group results excl. discontinued operations Total Revenue of € 127.7 million ((5.9)% compared to € 135.7 million in Q2 2025) Operating Profit € 0.1 million ((83.3)% compared to € 0.6 million in Q2 2025) EBITDA € 11.3 million ( + 2.7% compared to € 11.0 million in Q2 2025) Adjusted EBITDA € 14.0 million ((10.8)% compared to € 15.7 million in Q2 2025) Total Revenue € 245.1 million ((2.5)% compared to €251.3 million in H1 2025) Operating Profit € (1.9) million ( + 65.5% compared to € (5.5)million in H1 2025) EBITDA € 18.0 million ( + 15.4% compared to € 15.6 million in H1 2025) Adjusted EBITDA € 23.3 million ((2.5)% compared to € 23.9 million in H1 2025) Spotify integration: The Spotify Ad Exchange was integrated directly into our DSP, unlocking global, premium audio inventory at scale for our buyers. Westfield Rise partnership: A multi-year exclusive partnership was signed to launch in-mall audio across Unibail-Rodamco-Westfield shopping centers. Product launches: Azerion launched a new Self-Serve Platform for small and medium-sized businesses (SMBs) to scale their campaigns. Principion loan: The Group acquired 10.5 million treasury shares to offset the Principion B.V. loan and signed an amendment to extend the maturity of the remaining € 8.2 million balance. Radionomy settlement : A portion of the acquired treasury shares was utilised on a non-cash basis to fully settle a € 5.2 million contingent consideration obligation relating to the Radionomy Group acquisition. Strengthened balance sheet: We strategically reduced short-term borrowings, creating future capacity, while ensuring a healthy level of liquidity was maintained through an accelerated cash conversion cycle. Board nomination / CFO transition: Chief Strategy Officer Sebastiaan Moesman was named as acting CFO and nominated as a member of the Management Board. Total Revenue of € 102.9 million ((8.7)% compared to € 112.7 million in Q2 2025) Operating Profit: €(0.8) million ( + 52.9% compared to € (1.7) million in Q2 2025) EBITDA of € 10.0 million ( + 20.5% compared to € 8.3 million in Q2 2025) Adjusted EBITDA of € 12.6 million ((2.3)% compared to € 12.9 million in Q2 2025) Total Revenue of € 194.7million ((4.7)% compared to € 204.3 million in H1 2025) Operating Profit: € (4.5) million ( + 50.0% compared to € (9.0) in H1 2025) EBITDA of € 14.6 million ( + 29.2%compared to € 11.3 million in H1 2025) Adjusted EBITDA of € 19.8 million ( + 1.5% compared to € 19.5 million in H1 2025) EBITDA keeps improving; 20% growth in Q2. Cost savings from previous periods have culminated in another record Q2 EBITDA performance. While top-line revenue contracted slightly at € 102.9 million, our reported EBITDA improved significantly by 20.5% to € 10.0 million. Revenue contraction this quarter is largely due to specific agencies and publishers trying to find their way into the new AI era. We see big media agencies (such as WPP, OMG, IPG) merging and reorganizing, while some smaller ones face bankruptcies, and some publishers lose significant traffic. Specifically in the US, UK and Germany we've been feeling the effects of this turbulence in the market. However, we are regaining traction across the board as these companies reach out to long-standing partners, like Azerion, to optimise their supply and support in the upcoming months. While our focus on more strategic accounts (companies building their business on top of our platform) has been successful, winning and onboarding accounts such as Venatus and Candid Group took longer than expected, which also meant the expected positive impact on Q2 revenues will move to the second half of the year. Increasingly intelligent Omnichannel experience We continued to improve the automation and AI intelligence embedded in our products and processes. We launched our Personas tool, and introduced AdMove.ai for agencies. We also expanded our SaaS and Self-Serve footprint by launching a new platform for small and medium-sized businesses (SMBs), signing multiple UK Master Services Agreements (MSAs), and securing a strategic Channel 4 partnership. We also accelerated our focus on higher-yield Omnichannel formats. In Audio, we successfully integrated the Spotify Ad Exchange directly into our DSP and signed a multi-year European in-mall audio with Westfield Rise. In DOOH, we expanded our infrastructure by onboarding new CMS providers and launching exclusive screen networks in France, Turkey, and Saudi Arabia. To support this ecosystem, we deepened our casual gaming integrations and, through participation with our Eniro stake, acquired a 35% strategic equity interest in the publisher investment fund Flavus Invest AB to strengthen our broader supply chain. Company moving back to a scaling strategy The Average Digital Ads sold per Month increased by 1.6% to 13.1 billion in Q2 2026 (up from 12.9 billion in Q2 2025), reflecting steady inventory utilisation as we continue to optimise our platform integrations. Total Revenue of € 24.8 million ( + 7.8% compared to € 23.0 million in Q2 2025) Operating Profit: € 0.9 million ((60.9)% compared to € 2.3 million in Q2 2025) EBITDA of € 1.3 million ((51.9)% compared to€ 2.7 million in Q2 2025) Adjusted EBITDA of € 1.4 million ((50.0)% compared to€ 2.8 million in Q2 2025) Total Revenue of € 50.4million ( + 7.2% compared to € 47.0 million in H1 2025) Operating Profit: € 2.6 million ( (25.7)% compared to € 3.5 million in H1 2025) EBITDA of € 3.4 million ((20.9)% compared to € 4.3 million in H1 2025) Adjusted EBITDA of € 3.5 million ((20.5)% compared to € 4.4 million in H1 2025) First time AAA Game Distribution as segment This segment comprises our proprietary B2B digital logistics engine, Genba Digital, which manages relationships with game creators and digital retailers, alongside our B2C e-retail platform Voidu.com. Together, these capabilities enable us to securely distribute top-tier game titles to leading global digital retailers and directly to consumers. In AAA Game Distribution, game keys (the right to download and play games on PCs) are sold through our online stores. Consumers buy the game key from an online shop and subsequently download the game from PC platforms like Steam by Valve Corporation. Revenue in the segment is up 7.8% in Q2, showing healthy business performance and growth . This top-line resilience continued throughout H1 2026, generating € 50.4 million in revenue, representing a 7.2% increase compared to H1 2025 (€ 47.0 million). While the broader market experienced a relatively low volume of new releases, this top-line growth was driven by a healthy business performance, as we continued to generate high value for exclusive, Tier 1 partners like PlayStation and Embark Studios. This momentum was further fueled by the distribution of major studio releases, including Death stranding 2 , Resident Evil Requiem Deluxe Edition , and Marathon . Despite the strong revenue growth, EBITDA in the segment declined, with H1 Adjusted EBITDA contracting from € 4.4 million in H1 2025 to € 3.5 million in H1 2026. This contraction is primarily attributable to year-over-year foreign exchange (FX) effects with our H1 2025 baseline including a favourable, non-recurring positive FX gain, which distorts the year-over-year comparison. Adjusting for this, the segment's underlying operational profitability growth rate exceeded top-line growth, demonstrating improved operational efficiency. Total Group (excl. discontinued operations) 1) The increase of our EBITDA is again showing our cost-saving projects are paying off. It's amazing to see how the focus and dedication of the teams and the smart usage of AI to create efficiencies in the delivery of our services and products is paying off in real bottom-line results. As these projects are generating a healthy foundation for the company, we can shift focus back to growth. If we focus with similar dedication to Sales, Marketing and partnerships in the upcoming year, we believe we can grow our topline as fast and decisively as we generated efficiencies and cost savings in the last couple of years. Our statutory net loss for the period stood at € (20.7) million in H1 2026 (H1 2025: € (21.0) million), while H1 Operating Profit improved to € (1.9) million (H1 2025: € (5.5) million). On a quarterly basis, Q2 2026 Operating Profit was € 0.1 million (Q2 2025: € 0.6 million) and Adjusted EBITDA landed at € 14.0 million (Q2 2025: € 15.7 million). Building on initiatives from 2025, we increased our business output with a leaner, tech-enabled workforce. Through advanced workflow automation and realizing full acquisition synergies, we successfully reduced total salary costs (excluding payroll capitalisation) from € (24.0) million in Q2 2025 down to € (18.3) million in Q2 2026. By structurally reducing our personnel costs while navigating a slight contraction in top-line revenue, we are directly expanding our bottom-line margins. The benefits of our October 2025 bond refinancing have fully materialised in our P&L. Specifically, interest expense on our Senior Secured Bonds decreased by € 3.3 million period-over-period, driven by the favourable terms secured during our recent refinancing. Our focus on working capital management and liquidity yielded solid results. Net cash provided by operating activities increased to € 25.6 million in H1 2026 (H1 2025: € 3.5 million). This cash conversion was driven by our improved operational performance and steady working capital cycles, supported by our standard receivables financing arrangements. We also strategically reduced short-term borrowings, strengthening our balance sheet and creating future capacity, while ensuring a healthy level of liquidity was maintained. We capitalise costs related to the internal development of assets, a core activity to support innovation in our platform. During H1 2026 we maintained a healthy level of innovation, while development team efficiencies resulted in lower costs and a higher expected return on investment. In Q2 2026, we capitalised € 3.3 million, compared to € 3.7 million in Q2 2025. In H1 2026, we capitalised € 6.7 million, compared to € 7.1 million in H1 2025. Net interest-bearing debt for the Group, including discontinued operations, amounted to € 205.5 million as of 30 June 2026. This consists of our total financial indebtedness of € 238.6 million, which primarily comprises our outstanding bond loan and lease liabilities, less our cash and cash equivalents position of € 33.0 million. Our capital structure continues to benefit from the October 2025 refinancing. As mentioned previously, our top-line faces pressure as a result of a challenging market disrupted by AI and timing of strategic partnerships, and we therefore revise our guidance: Our full year 2026 revenue is expected to be stable compared to 2025, and we remain committed to our medium term guidance of 14-16% adjusted EBITDA margin. References in the table above refer to the terms as defined in the Senior Secured Callable Floating Rate Bonds ISIN: NO0013660357, for the Group including discontinued operations. Reconciliation of profit /(loss) for the period to adjusted EBITDA For the complete reconciliation of reported Profit / (loss) for the period to Adjusted EBITDA across our reportable segments, please refer to note 7: Operating Segments. For an overview of material related party transactions that occurred during the first six months of 2026, please refer to note 18: Related parties of the condensed consolidated interim financial statements. The principal risks and uncertainties facing the Group for the remaining six months of 2026 remain materially unchanged from those detailed in the "Risk management" section of our 2025 Annual Report. These risks are deemed incorporated and repeated in this interim report by reference. Management does not have any indication that this risk profile will significantly change during the second half of the financial year. Condensed consolidated unaudited financial results for the six-month period ended 30 June 2026 The principal activities of Azerion Group N.V. ('the Company') and its group companies (jointly, the 'Group') are described in the Annual Report 2025. The interim financial results for the six months period ended 30 June 2026 consist of the condensed consolidated financial statements, the management report and responsibility statement by Azerion Group N.V. Management Board. The information in this interim financial report has not been audited or reviewed by Azerion Group N.V.'s external auditor. Pursuant to section 5:25d, paragraph 2(c), of the Dutch Financial Supervision Act (Wet op het financieel toezicht), the Management Board of Azerion Group N.V. hereby declares that to the best of its knowledge: the condensed consolidated unaudited financial statements for the six-month period ended 30 June 2026 give a true and fair view of the assets, liabilities, financial position and profit or loss of Azerion Group N.V. and the entities included in the consolidation taken as a whole; and the interim report of the Management Board for the period ended 30 June 2026 gives a fair review of the information required pursuant to article 5:25d, paragraph 8 and 9 of the Dutch Financial Supervision Act regarding Azerion Group N.V. and the entities included in the consolidation. Condensed consolidated statement of profit or loss Condensed consolidated statement of comprehensive income Condensed consolidated statement of financial position Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flow Notes to the condensed consolidated financial statements note 1 General information note 2 Preparation basis note 3 Significant accounting policies note 4 Seasonality note 5 Changes in Group structure note 6 Discontinued operations and assets classified as held for sale note 7 Operating Segments note 8 Revenue disaggregation note 9 Intangible assets note 10 Non-current financial assets note 11 Trade working capital note 12 Equity note 13 Borrowings note 14 Other liabilities note 15 Operating expenses note 16 Net Finance Costs note 17 Income tax note 18 Related parties note 19 Fair value measurement note 20 Earnings per share note 21 Subsequent events Condensed consolidated statement of profit or loss Profit / (loss) per share attributable to the ordinary equity holders of the company: Basic profit/(loss) per share from continuing operations (in €) Diluted profit/(loss) per share from continuing operations (in €) Total basic profit/(loss) per share (in €) Total diluted profit/(loss) per share (in €) 1)Comparative figures for the three-month and six-month periods ended 30 June 2025 have been re-presented to align with full-year corporate expense allocations, resulting in a € 0.1 million and € 1.0 million reclassification, respectively, from discontinued operations to continuing "Other expenses". Total net profit/(loss) and Adjusted EBITDA for the periods remain unchanged. Condensed consolidated statement of comprehensive income Items that may be reclassified subsequently to profit or loss: Share of other comprehensive income of associates Items that will not be reclassified subsequently to profit or loss: Total other comprehensive income / (loss) Condensed consolidated statement of financial position Condensed consolidated statement of changes in equity Condensed consolidated statement of cash flow Condensed consolidated statement of cash flows In millions of € - for the six-month period ended 30 June Adjustments for operating profit / (loss): Depreciation, amortisation and impairment (Gain)/loss on disposal of subsidiaries and other assets (Increase)/decrease in trade and other receivables Increase/(decrease) in trade payables and other payables Net cash provided by (used for) operating activities Payments for property, plant and equipment Net cash provided by (used for) investing activities Dividends paid to shareholders of non-controlling interests Payment of principal portion of lease liabilities Net cash provided by (used for) financing activities Net increase/(decrease) in cash and cash equivalents (Increase)/decrease in cash and cash equivalents included in asset held for sale Cash and cash equivalents at the beginning of the period Cash and cash equivalents at the end of the period 1)Operating profit/(loss) used as the starting point for the reconciliation of cash generated from operations includes the results of discontinued operations before impairment for all periods presented. For details from the discontinued operations, see note 6: Discontinued operations and assets classified as held for sale below. 2)The comparative consolidated statement of cash flows for the six-month period ended 30 June 2025 has been re-presented to reclassify transit balances related to the Group's non-recourse factoring facility. These balances represent "money in transit", cash collected from clients on previously factored and derecognised invoices that is temporarily held by the Group prior to scheduled remittance to the factoring provider. Originally presented within operating activities as "Increase/(decrease) in trade payables and other payables", the cash flows associated with these short-term, high-turnover, transit accounts are now presented as 'Net movement in short-term debt' within financing activities. This presentation aligns with the classification of the underlying liability as short-term borrowings, and conforms to the presentation adopted in the 2025 Annual Report. Consequently, €11.0 million was reclassified from operating to financing activities for the comparative period. This change had no impact on previously reported net cash balances, operating profit, or Adjusted EBITDA. Notes to the condensed consolidated financial statements Azerion Group N.V. (the 'Company') is a listed public company incorporated in the Netherlands under Dutch law on 25 January 2021 and registered at Boeing Avenue 30, 1119 PE, Schiphol-Rijk, the Netherlands. The Company's number in the Trade Register at the Chamber of Commerce is 81697244. The Company is a holding company with its main operations situated in the Netherlands and the domicile of the Company is in the Netherlands. The Company is listed on the Euronext stock exchange in Amsterdam. These condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union and in accordance with Title 9, Book 2 of the Dutch Civil Code ("DCC"). They do not include all information required for a complete set of annual financial statements and should be read in conjunction with the Group's consolidated financial statements for the year ended 31 December 2025. The condensed consolidated interim financial statements have not been audited nor reviewed by the Group's external auditor. The condensed consolidated interim financial statements were authorized for issuance by the Management Board on 27 August 2026. For the six-month period ended 30 June 2026, the Group reported a net loss of € (20.7) million. As at 30 June 2026, total shareholders' equity was € (17.6) million (31 December 2025: € 10.8 million) and total Group equity was € (10.2) million (31 December 2025: € 19.7 million). Management applied accounting judgement in concluding that the consolidated equity deficit does not constitute a material uncertainty regarding the Group's ability to continue as a going concern.

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