Nexxen Reports Results for the Fourth Quarter and Year Ended December 31, 2023 (2024)

Nexxen International Ltd.(AIM/NASDAQ: NEXN) (“Nexxen” or the“Company”), a global, unified advertising technology platform withdeep expertise in video and Connected TV (“CTV”), announced todayits financial results for the fourth quarter and yearendedDecember 31, 2023. The Company’s financial results forthe fourth quarter and year ended December 31, 2023, as well as thefourth quarter ended December 31, 2022, reflect the combinedfinancial performance of Nexxen and Amobee, while comparativefigures for the year ended December 31, 2022 include Amobeecontribution only from September 12, 2022 through December 31,2022.

Financial Summary

• Contributionex-TAC: Generated Contribution ex-TAC of $90.5 million inQ4 2023, reflecting a 12% decrease from $103.0 million in Q4 2022,and Contribution ex-TAC of $314.2 million for the year endedDecember 31, 2023, reflecting a 1% increase compared to $309.7million for the year ended December 31, 2022. Weakness in Q4 2023Contribution ex-TAC was a byproduct of reduced managed service,video, and CTV spending from some of the Company’s highest-spendingagency customers it is heavily indexed to, as well as Nexxendiscontinuing less profitable relationships with certain customers.Full year 2023 Contribution ex-TAC was also affected by challengingadvertising conditions throughout the year which disproportionatelyimpacted budgets and spending for several of the Company’s small-and mid-sized agency customers, a notable decline in the Company’snon-core business focused on legacy non-programmaticperformance-related activities, and challenges stemming from theinitial integration of Amobee’s and Nexxen’s sales teams,technology stack, and management teams. Nexxen believes its salesteam is well-positioned to drive growth in 2024 as it is nowexclusively focused on selling as opposed to integrationinitiatives and is equipped with a significantly enhanced platformfeaturing in-demand tech and data capabilities. Nexxen iscautiously optimistic that macroeconomic and advertising conditionswill improve in 2024, potentially driving increased budgets andspending for its larger customers.
• ProgrammaticRevenue: Programmatic revenue was $86.0 million in Q42023, reflecting a 9% decrease from $94.5 million in Q4 2022, whileprogrammatic revenue was $299.0 million for the year ended December31, 2023, reflecting a 9% increase compared to $274.4 million forthe year ended December 31, 2022. Reduced programmatic revenue inQ4 2023 compared to Q4 2022 was a byproduct of lower overallContribution ex-TAC driven by weaker comparative advertising demandand spending from some of the Company’s larger customers, whileincreases for the year ended December 31, 2023, compared to theyear ended December 31, 2022, were driven largely by the completedintegration of Amobee, which included a strong programmatic revenuefootprint.
• CTV Revenue: CTVrevenue was $19.9 million in Q4 2023, compared to $33.0 million inQ4 2022. CTV revenue was impacted by a combination of factorsincluding the SAG-AFTRA strike, and reduced CTV spending from someof the Company’s largest small- and mid-sized agency customers.Importantly, these customers continued to spend within Nexxen’sbroader platform offerings during Q4 2023 but largely selected theCompany’s lower-cost, performance-based programmatic solutions,such as mobile video and display. The Company believes this was aresult of cost-savings efforts and the continued evolution ofon-the-go streaming preferences as consumers increasingly streamcontent on mobile phones and tablets, in addition to CTVs, all ofwhich are options the Company can flexibly service advertisingcustomers across. CTV revenue was $85.5 million for the year endedDecember 31, 2023, reflecting a 12% decrease from $97.2 million forthe year ended December 31, 2022. The Company believes it willachieve CTV revenue growth in 2024 amidst optimism thatmacroeconomic conditions will improve, and its larger customers’budgets and spending will increase.
• CTV and ProgrammaticRevenue Percentages: CTV revenue during the three andtwelve months ended December 31, 2023 represented 23% and 29% ofprogrammatic revenue, respectively, compared to 35% for the sameprior year periods. Programmatic revenue increased to 90% ofrevenue for the three and twelve months ended December 31, 2023,compared to 88% and 82% of revenue, respectively, for the sameprior year periods.
• Adjusted EBITDA:Generated Adjusted EBITDA of $32.0 million for the three monthsended December 31, 2023, and $83.2 million for the twelve monthsended December 31, 2023, compared to $36.9 million and $144.9million for the same prior year periods. Year-over-year decreaseswere attributable to the integration of Amobee, whose businesslines operate at a lower profitability profile than Nexxen’spre-acquisition standalone business, and reduced spending from someof the Company’s largest customers throughout 2023 compared to2022.
• Adjusted EBITDAMargins: Achieved a 35% Adjusted EBITDA Margin on aContribution ex-TAC basis, and 33% on a revenue basis, for thethree months ended December 31, 2023, compared to 36% on aContribution ex-TAC basis, and 34% on a revenue basis for the threemonths ended December 31, 2022. Nexxen achieved an Adjusted EBITDAMargin of 26% on a Contribution ex-TAC basis, and 25% on a revenuebasis, for the twelve months ended December 31, 2023, compared to47% on a Contribution ex-TAC basis, and 43% on a revenue basis forthe twelve months ended December 31, 2022. The Company anticipatesAdjusted EBITDA Margins will expand in full year 2024 compared tofull year 2023 amidst expectations for increased Contributionex-TAC.
• Video Revenue:Video revenue continued to represent most of the Company’sprogrammatic revenue at 67% and 69% for the three and twelve monthsended December 31, 2023, respectively, compared to 80% and 89% forthe three and twelve months ended December 31, 2022,respectively.
• LiquidityResources: As of December 31, 2023, the Company had netcash of $134.3 million, consisting of cash and cash equivalents of$234.3 million, offset by approximately $100.0 million in principallong-term debt, as well as $80 million undrawn on its revolvingcredit facility. The Company’s net cash balance as of March 4,2024, increased to approximately $146.0 million. The Companyintends to prioritize near-term cash resources on strategicinternal growth investments and initiatives and its ongoingOrdinary share repurchase program, as well as future potentialshare repurchase programs. The Company does not anticipate anymajor near-term acquisitions as it believes its technology and datastack now offers the necessary components to enable market sharegains within the digital advertising ecosystem.

“Q4 2023 capped off a transformational year forNexxen. In 2023 we achieved a key milestone by rebranding fromTremor International. Also, through the significant investment offocus and resources, we efficiently combined two massive technologyplatforms and employee bases, successfully completing theintegration of Amobee, our largest acquisition ever. Thiscombination created a state-of-the-art data-driven end-to-endplatform built through approximately $1 billion of cumulativeR&D investment, and loaded with in-demand tech, planning,video, CTV, and data capabilities critical to helping our customerssucceed in the digital advertising ecosystem,” said Ofer Druker,CEO of Nexxen.

Mr. Druker added, “In 2024, we are continuing tofocus on expanding our base of end-to-end customers leveraging usfor multiple enterprise tech and data solutions, growing our datalicensing revenue, and expanding our streaming, TV, and agencypartnerships to drive growth and increased profitability, against amacroeconomic backdrop we are cautiously optimistic is showingsigns of improvement. With the integration of Amobee now complete,we believe we can shift our primary investment focus towardsinnovation and our share repurchase program to generate long-termvalue for our customers and shareholders.”

OperationalHighlights

• Completed rebrand to Nexxen(from Tremor International), better positioning the Company withcustomers and investors
  • Simplified and enhanced theholistic value proposition of the Company’s advanced data-driventech stack.
  • Updated the Company’s parent nameto Nexxen International Ltd. and changed its stock tickers in theU.S. and U.K. markets from “TRMR” to “NEXN” in January 2024.
  • Celebrated the Company’s rebrandingat NASDAQ’s Closing Bell ceremony on February 28, 2024, generatingfurther momentum with customers and investors, and increasedindustry awareness.

• Investment in VIDAA enabledthe creation of new data licensing revenue streams, reflecting anexciting growth opportunity
  • Nexxen is generating notableinitial demand for automatic content recognition (“ACR”) datalicensing partnerships from major third-party DSPs, agencies, andkey research and measurement players within the industry seeking toleverage the Company’s exclusive global access to VIDAA’s rapidlygrowing smart TV data footprint.
  • This high-margin annually recurringdata licensing revenue is expected to reflect a significant growthopportunity for Nexxen, while also enabling greater resiliency inthe Company’s revenue base, as the Company believes the revenue isless susceptible to volatility in advertising demandconditions.

• Significantly expanded TVIntelligence data footprint through exclusive partnership withPeerLogix and continued growth by VIDAA; now offering solution inU.S. and U.K. with further international expansion expected in2024
  • Nexxen entered a new exclusivepartnership with PeerLogix, an audience discovery platform, toaugment the Company’s TV Intelligence solution with premiumon-the-go streaming viewership data from platforms like Netflix,Hulu, and Disney+. TV Intelligence is an expansive datasetinclusive of Set-Top Box (“STB”), ACR, and cross-screen panel datathat can offer insights on TV and streaming viewership data acrossapproximately 50 million households in the U.S. alone, enablingmore effective targeting for customers across the TV and streamingecosystem.
  • VIDAA, Hisense’s primary CTVoperating system, whose global ACR data can be exclusivelymonetized and distributed by Nexxen through at least the end of2026, grew its reach to over 25 million Connected TVs during 2023,significantly expanding and enhancing Nexxen’s TV viewership datafootprint. According to VIDAA, this number has already increased toover 26 million Connected TVs thus far in 2024.
  • Launched TV Viewership Audiences inthe U.K. while expanding the Company’s TV Intelligence offering inthe U.S., generating notable and increased adoption during Q4 2023.The Company expects further growth in both markets in 2024.
  • The Company expects to launch itsTV Intelligence solution in additional major international marketsin 2024, enhancing and expanding the Company’s international CTVgrowth opportunity.

• Scaled and expanded CTV partnership roster; establishedrelationships with more of the world’s major smart TV OEMs
  • Expanded the Company’s strategicpartnership with TCL FFALCON (“TCL”) beyond solely grantingadvertising customers access to CTV and OTT supply in the TCLchannel, to also exclusively sell TCL’s native display inventory asa preferred supply partner.
  • Following Nexxen’s settlement andpartnership agreement with Alphonso Inc. and LG Electronics, Inc.,the Company now holds relationships with a larger base of theworld’s major smart TV OEMs.
  • Partnered with out-of-home (“OOH”)advertising group, Taiv, to broaden Nexxen’s CTV OOH opportunitiesfor clients across the advertising ecosystem. The partnershipdelivers immersive, high impact ad experiences by reachingaudiences on screens in U.S. sports bars and restaurants, hittinganother CTV touchpoint within Nexxen’s larger CTV OOHoffering.

• Nexxen Discovery’s audience finding and targetingcapabilities generating increased adoption and significant interestahead of the 2024 U.S. election cycle
  • Nexxen Discovery, the Company’sdata fueled B.I. tool, has been adopted by key industry partnersand is generating significant interest with political advertisersand agencies ahead of the 2024 U.S. election cycle.
  • While political has nothistorically been a material vertical for Nexxen, with the additionof Nexxen Discovery to the Company’s product portfolio, and anincreased dedicated sales focus on the vertical, Nexxen anticipatesgrowth within the vertical in 2024 in an election year whereeMarketer estimates over $12 billion in U.S. political adspending.
    
• Added a significant numberof new customers on the buy- and sell-sides of the ecosystem duringthe three and twelve months ended December 31, 2023, whileretaining the vast majority of the Company’s highest-spendingcustomers throughout 2023
  • Nexxen DSP added 111 new actively-spending first-timeadvertiser customers during Q4 2023 across entertainment, food andbeverage, automotive, and finance verticals, as well as others.This figure included 14 new enterprise self-service advertisercustomers, highlighted by some of the world’s largest andmost-recognized CTV publishers, broadcasters, and Consumer PackagedGoods (“CPG”) companies, as well as three new independent agenciesleveraging the Company’s solutions in a self-service capacity. TheCompany added 334 new actively-spending first-time advertisercustomers for the twelve months ended December 31, 2023.
  • Nexxen SSP added 89 new supply partners, including 78 in theU.S., during Q4 2023, across several verticals and formats,including CTV, broadcast TV, mobile, and mobile gaming. The Companyadded 372 new supply partners during the twelve months endedDecember 31, 2023, including 327 in the U.S.
  • The Company achieved a 73% net revenue retention rate for theyear ended December 31, 2023, compared to 80% for the year endedDecember 31, 2022. The decrease was driven by reduced budgets forsome of the Company’s largest small- and mid-sized agency customersdue to challenging macroeconomic conditions, which drove loweroverall spending and shifts to lower-cost options within Nexxen’sbroader product ecosystem, as well as Nexxen discontinuing lessprofitable relationships with certain customers.

Launched $20 Million Ordinary ShareRepurchase Program

• On December 20, 2023, the Companylaunched a new $20 million Ordinary share repurchase program,following approval from the Israeli Court and the Company’s Boardof Directors.
• The Company repurchased 221,506shares during Q4 2023 at an average price of 201.01 pence,reflecting a total investment of £446,139, or $565,714.
• The Company’s Ordinary sharerepurchase program will continue until the earlier of June 18, 2024and the date the program is completed. The share repurchase programdoes not obligate Nexxen to repurchase any particular amount ofOrdinary Shares and the program may be suspended, modified, ordiscontinued at any time at the Company’s discretion, subject toapplicable law.
• Upon completion of the currentshare repurchase program, the Company’s Board of Directors intendsto evaluate the implementation of an additional share repurchaseprogram, subject to then current market conditions and obtainingrequisite regulatory approval, including, if required, approvalfrom the Israeli Court.

Reached Favorable Settlement Agreementwith Alphonso Inc. and LG Electronics, Inc. (“LGE”) and Enteredinto Multi-Year Strategic Partnership

• On February 28, 2024, Nexxenannounced it reached a favorable settlement agreement and launcheda three-year strategic partnership with Alphonso Inc. and LGE,resolving the disputes underlying the complaints, and concludingthe parties’ litigation.
• The executed settlement agreementincludes a cash component and a commercial strategic partnership.Through the partnership and settlement agreement, Alphonso Inc.will grant Nexxen limited access to monetize a portion of LG’spremium CTV inventory and will also leverage Nexxen’s data-drivendiscovery and segmentation tools.

Financial Guidance

• Management believes ongoingmacroeconomic headwinds and uncertainty may continue to limitnear-term budgets and spending for some of the Company’s largestsmall- and mid-sized agency customers, drive continued managedservice softness, and cause customers to continue to focus spendingon lower-cost solutions within Nexxen’s broad suite of offerings,but is cautiously optimistic these customers will revert to theCompany’s premium solutions amidst anticipated improvement inmacroeconomic and advertising demand conditions.

• Management also believes theCompany is well-placed to capitalize on industry growth trendsfollowing the completed integration of Amobee given its uniquepositioning to flexibly serve customers on both sides of theecosystem across formats and devices, expand its end-to-endcustomer base, increase its base of customers leveraging multipleenterprise tech and data solutions, grow its data licensingrevenue, and increase its agency and TV partnerships. Managementalso anticipates Adjusted EBITDA Margin expansion and CTV revenuegrowth in full year 2024 compared to full year 2023, and Nexxenprovides the following financial guidance:
  • Full year 2024 Contribution ex-TAC in a range ofapproximately$340 - $345 million
  • Full year 2024 Adjusted EBITDA of approximately $100million
  • Full year 2024 Programmatic revenue to reflect approximately90% of full year 2024 revenue

Fourth Quarter and Full Year 2023Financial Highlights ($ in millions, except per shareamounts)

Fourth Quarter and Full Year 2023 Financial Results Webcast andConference Call Details

• Nexxen International Fourth Quarter and Twelve Months EndedDecember 31, 2023Earnings Webcast and Conference Call
• March 6, 2024, at6:00 AM PT /9:00 AM ET / 2:00 PMGMT
• Webcast Link:https://edge.media-server.com/mmc/p/93my32xz
• Participant Dial-In Numbers:
  • U.S. / Canada Participant Toll-Free Dial-In Number: (888)596-4144
  • U.K. Participant Toll-Free Dial-In Number: +44 800 2606470
  • International Participant Toll-Free Dial-In Number: (646)968-2525
  • Conference ID: 5462475

Use of Non-IFRS FinancialInformation

In addition to our IFRS results, we reviewcertain non-IFRS financial measures to help us evaluate ourbusiness, measure our performance, identify trends affecting ourbusiness, establish budgets, measure the effectiveness ofinvestments in our technology and development and sales andmarketing, and assess our operational efficiencies. These non-IFRSmeasures include Contribution ex-TAC, Adjusted EBITDA, AdjustedEBITDA Margin, Non-IFRS Net Income, and Non-IFRS Earnings pershare, each of which is discussed below.

These non-IFRS financial measures are notintended to be considered in isolation from, as substitutes for, oras superior to, the corresponding financial measures prepared inaccordance with IFRS. You are encouraged to evaluate theseadjustments and review the reconciliation of these non-IFRSfinancial measures to their most comparable IFRS measures, and thereasons we consider them appropriate. It is important to note thatthe particular items we exclude from, or include in, our non-IFRSfinancial measures may differ from the items excluded from, orincluded in, similar non-IFRS financial measures used by othercompanies. See "Reconciliation of Revenue to Contribution ex-TAC,""Reconciliation of Total Comprehensive Income (Loss) to AdjustedEBITDA," and "Reconciliation of Net Income (Loss) to Non-IFRS NetIncome," included as part of this press release.

• Contributionex-TAC: Contribution ex-TAC for Nexxen is defined as grossprofit plus depreciation and amortization attributable to cost ofrevenues and cost of revenues (exclusive of depreciation andamortization) minus the Performance media cost (“trafficacquisition costs” or “TAC”). Performance media cost represents thecosts of purchases of impressions from publishers on acost-per-thousand impression basis in our non-core Performanceactivities. Contribution ex-TAC is a supplemental measure of ourfinancial performance that is not required by, or presented inaccordance with, IFRS. Contribution ex-TAC should not be consideredas an alternative to gross profit as a measure of financialperformance. Contribution ex-TAC is a non-IFRS financial measureand should not be viewed in isolation. We believe Contributionex-TAC is a useful measure in assessing the performance of Nexxen,because it facilitates a consistent comparison against our corebusiness without considering the impact of traffic acquisitioncosts related to revenue reported on a gross basis.
• Adjusted EBITDA:We define Adjusted EBITDA for Nexxen as total comprehensive income(loss) for the period adjusted for foreign currency translationdifferences for foreign operations, foreign currency translationfor subsidiary sold reclassified to profit and loss, financingexpenses (income), net, tax expenses, depreciation andamortization, stock-based compensation, restructuring,acquisition-related costs and other expenses, net. Adjusted EBITDAis included in the press release because it is a key metric used bymanagement and our board of directors to assess our financialperformance. Adjusted EBITDA is frequently used by analysts,investors, and other interested parties to evaluate companies inour industry. Management believes that Adjusted EBITDA is anappropriate measure of operating performance because it eliminatesthe impact of expenses that do not relate directly to theperformance of the underlying business.
• Adjusted EBITDA Margin: Wedefine Adjusted EBITDA Margin as Adjusted EBITDA on a Contributionex-TAC basis.
• Non-IFRS Income (Loss) andNon-IFRS Earnings (Loss) per Share: We define non-IFRSearnings (loss) per share as non-IFRS income (loss) divided bynon-IFRS weighted-average shares outstanding. Non-IFRS income(loss) is equal to net income (loss) excluding stock-basedcompensation, and cash- and non-cash-based acquisition and relatedexpenses, including amortization of acquired intangible assets,merger-related severance costs, and transaction expenses. Inperiods in which we have non-IFRS income, non-IFRS weighted-averageshares outstanding used to calculate non-IFRS earnings per shareincludes the impact of potentially dilutive shares. Potentiallydilutive shares consist of stock options, restricted stock awards,restricted stock units, and performance stock units, each computedusing the treasury stock method. We believe non-IFRS earnings(loss) per share is useful to investors in evaluating our ongoingoperational performance and our trends on a per share basis, andalso facilitates comparison of our financial results on a per sharebasis with other companies, many of which present a similarnon-IFRS measure. However, a potential limitation of our use ofnon-IFRS earnings (loss) per share is that other companies maydefine non-IFRS earnings per share differently, which may makecomparison difficult. This measure may also exclude expenses thatmay have a material impact on our reported financial results.Non-IFRS earnings (loss) per share is a performance measure andshould not be used as a measure of liquidity. Because of theselimitations, we also consider the comparable IFRS measure of netincome.

We do not provide a reconciliation offorward-looking non-IFRS financial metrics, because reconcilinginformation is not available without an unreasonable effort, suchas attempting to make assumptions that cannot reasonably be made ona forward-looking basis to determine the corresponding IFRSmetric.

The information contained within thisannouncement is deemed by the Company to constitute insideinformation as stipulated under the Market Abuse Regulations (EU)No. 596/2014 (as implemented into English law) ("MAR"). With thepublication of this announcement via a Regulatory InformationService, this inside information is now considered to be in thepublic domain.

AboutNexxen

Nexxen empowers advertisers, agencies,publishers and broadcasters around the world to utilize video andConnected TV in the ways that are most meaningful to them.Comprised of a demand-side platform (DSP), supply-side platform(SSP), ad server and data management platform (DMP), Nexxendelivers a flexible and unified technology stack with advanced andexclusive data at its core. Our robust capabilities span discovery,planning, activation, measurement and optimization – availableindividually or in combination – all designed to enable ourpartners to reach their goals, no matter how far-reaching or hyperniche they may be. For more information, visit www.nexxen.com

Nexxen is headquartered in Israel and maintainsoffices throughout the United States, Canada, Europe andAsia-Pacific, and is traded on the London Stock Exchange (AIM:NEXN) and NASDAQ (NEXN).

For further information pleasecontact:

Nexxen International Ltd.
Billy Eckert, Vice President of Investor Relations
ir@nexxen.com

Caroline Smith, Vice President ofCommunications
csmith@nexxen.com

KCSA (U.S.InvestorRelations)
David Hanover, Investor Relations
nexxenir@kcsa.com

Vigo Consulting(U.K.FinancialPR & Investor Relations)
Jeremy Garcia / Peter Jacob / Aisling Fitzgerald
Tel: +44 20 7390 0230 ornexxen@vigoconsulting.com

Cavendish Capital MarketsLimited
Jonny Franklin-Adams / Charlie Beeson / George Dollemore (CorporateFinance)
Tim Redfern/Harriet Ward(ECM)
Tel: +44 20 7220 0500

Forward Looking Statements

This press release contains forward-lookingstatements, including forward-looking statements within the meaningof Section 27A of the United States Securities Act of 1933, asamended, and Section 21E of theUnited StatesSecuritiesand Exchange Act of 1934, as amended.Forward-looking statements are identified by words such as“anticipates,” “believes,” “expects,” “intends,” “may,” “can,”“will,” “estimates,” and other similar expressions. However, thesewords are not the only way Nexxen identifies forward-lookingstatements. All statements contained in this press release that donot relate to matters of historical fact should be consideredforward-looking statements, including without limitation statementsregarding anticipated financial results for full year 2024 andbeyond; anticipated benefits of Nexxen’s strategic transactions andcommercial partnerships; anticipated features and benefits ofNexxen’s products and service offerings; Nexxen’s positioning foraccelerated growth and continued future growth in both the US andinternational markets in 2024 and beyond; Nexxen’s medium- tolong-term prospects; management’s belief that Nexxen iswell-positioned to benefit from future industry growth trends andCompany-specific catalysts; the Company’s expectations with respectto Video revenue; the potential negative impact of ongoingmacroeconomic headwinds and uncertainty that have limitedadvertising activity and the anticipation that these challengescould continue to have an impact for the remainder of 2024 andbeyond; the Company’s plans with respect to its cash reserves andits intent to not undertake any major acquisitions in thenear-term; its continued focus in 2024 on expanding its base ofend-to-end customers, growing data licensing revenue and expandingits streaming, TV, and agency partnerships to drive growth andincreased profitability; the expectation of launching its TVIntelligence solution in additional major international markets in2024, enhancing and expanding the Company’s international CTVgrowth opportunity; the anticipated benefits from the Company’sinvestment in VIDAA and its enhanced strategic relationship withHisense; the anticipated benefits of the rebranding of the Tremorgroup to Nexxen, and the Company’s plans with respect thereto, aswell as any other statements related to Nexxen’s future financialresults and operating performance. These statements are neitherpromises nor guarantees but involve known and unknown risks,uncertainties and other important factors that may cause Nexxen’sactual results, performance or achievements to be materiallydifferent from its expectations expressed or implied by theforward-looking statements, including, but not limited to, thefollowing: negative global economic conditions; global conflictsand war, including the current terrorist attacks by Hamas, and thewar and hostilities between Israel and Hamas and Israel andHezbollah, and how those conditions may adversely impact Nexxen’sbusiness, customers, and the markets in which Nexxen competes;changes in industry trends; the risk that Nexxen will not realizethe anticipated benefits of its acquisition of Amobee and strategicinvestment in VIDAA; and, other negative developments in Nexxen’sbusiness or unfavourable legislative or regulatory developments.Nexxen cautions you not to place undue reliance on theseforward-looking statements. For a more detailed discussion of thesefactors, and other factors that could cause actual results to varymaterially, interested parties should review the risk factorslisted in the Company’s most recent Annual Report on Form 20-F,filed with theU.S. Securities and ExchangeCommission(www.sec.gov)onMarch 7, 2023. Any forward-looking statements made byNexxen in this press release speak only as of the date of thispress release, and Nexxen does not intend to update theseforward-looking statements after the date of this press release,except as required by law.

Nexxen, and the Nexxen logo are trademarksofNexxen International Ltd.inthe UnitedStatesand other countries. All other trademarks are theproperty of their respective owners. The use of the word “partner”or “partnership” in this press release does not mean a legalpartner or legal partnership.

Reconciliation of Total ComprehensiveIncome (Loss) toAdjusted EBITDA

Reconciliation of Revenue to Contribution ex-TAC

Reconciliation of Net Income (Loss) toNon-IFRS Net Income

(1) Non-IFRS income includes the estimated tax impact from theexpense items reconciling between net income (loss) and non-IFRSincome
(2) Non-IFRS earnings per share is computed using the sameweighted-average number of shares that are used to compute IFRSearnings per share