Member Info for Radium1

Re the RNS....Nexxen Seeking Authorization for a New $50 Million Ordinary Share Repurchase Program.

The wording therein states….In addition, the commencement of the Ordinary Share repurchase program is subject to receipt of the consent of the Company's bank lenders.

I’ve no wish to knock the cream of the bun but rather than assuming that Nexxen’s early repayment of the $100m term loan is due to management’s newfound confidence, has anyone given consideration to the possibility that the lenders insisted that the term loan was repaid and that Nexxen was obliged to make that payment in order to get the $50m buyback of the ground?

It’s not easy for me to post up a negative possibility like this in the light of all the positive assumption that have been postulated here and elsewhere but it has to be a consideration. That said, it’s a positive that we had the cash to do it, and Nexxen is now dept free.

Jonhas, I've just come across an Seeking Alpha article written yesterday by Alex Hendrix.

He notes....Yesterday’s rout reduced Perion’s market cap to about $600million (a reduction of about $380/390million). Alex Hendrix puts Perion’s enterprise value at just $100m. He also remarks….. While an enterprise value of just above $100 million for a solidly profitable digital advertising business with over $300 million in annual revenues (net of traffic acquisition costs) is dirt cheap, I don't see much sense in bottom fishing here as tremendous uncertainty regarding the company's path forward is likely to result in ongoing selling pressure, particularly with management's credibility having taken a major hit.

He records the same thoughts as me in that he says….Given the anticipated, massive reduction in Microsoft Bing-related revenues this year, it is hard to imagine the longstanding search advertising partnership with Microsoft being extended beyond the end of this year.

Using Nexxen’s current share count, Nexxen would have an equivalent market cap to Perion at around $4.29 (£3.40) or $8.6 per RDS. On that basis, if Nexxen meets their FY24 forecast of $350m (ish) and Perion is considered dirt cheep then by conjecture Nexxen is dirt cheep give that Nexxen wont be carrying Perion's baggage.

Jonhas, Microsoft, having bought Xandr in 2021 may not now feel the need to renew its contract with Perion.

I think Perion had sensed this already. It’s my view that Perion knew it had an over reliant relationship with Microsoft and it was already in the early stage of implementing change to mitigate for this and to that end Perion had already started on an acquisition path. This move by Microsoft has come with bad timing for Perion, but Perion has the cash, the ability and the opportunity to buy/acquire, integrate, and/or merge its way out of this. Its market cap is now attractive. Nexxen, with a bit of progress by year end, could find itself at or near equal par and the valuation gap close or closed. Interesting? Who knows, maybe not.

Microsoft has always nurtured an aspirations to close the gap with google and continues to struggle with that…..extract, Microsoft hoped that Bing Chat, its AI now-renamed Copilot, would help to swell the ranks of Bing search users when it was launched early this year – but as we can see, that hasn’t happened. The Bing search engine had a 3% share at the beginning of 2023 going by Statcounter’s figures, so has notched that up 0.2% over the course of the year – a pretty miniscule uptick.

Its not so long ago that I was reading this headline…. The relationship with Microsoft also seems strong as Perion was named Microsoft's Advertising Global Supply Partner of the Year. Its current contract runs through the end of 2024.

If that contract is not renewed it could be another blow for Perion shareholders.

All said and done, for existing shareholders, most will conclude that the route out of this for Perion may well be slow and bumpy.

https://about.ads.microsoft.com/en-us/blog/post/december-2021/microsoft-to-acquire-xandr-to-accelerate-its-digital-advertising-and-retail-media-solutions

Condolences gdog. Sincerely.

Whereas there was always a question mark and a worry for me about Microsoft's contract renewal with Perion, few will have seen this pricing change decision coming. The resulting revenue hit for Peri is substantial, the sp reaction, understandably brutal, and with a mid point revenue drop of $270 million forecast for FY24, there looks to be little to support the sp for the foreseeable. If I recall correctly, you bought into Peri from early days so I hope the damage isn't so bad. Kind regards. Radium.

Perion....too reliant on Microsoft's Bing Search Distribution.

"Microsoft advertising unilaterally changed the amount it was willing to pay for indirectly sourced search traffic by all of its search partners..... that's what's causing the reset for Perion."

Recently, Perion Network, an Israeli ad tech firm, faced significant challenges due to changes made by Microsoft’s Bing search engine in its search distribution marketplace. Here are the key points:

1. Agreement with Microsoft: Perion’s agreement with Microsoft, which was renewed in 2020, accounted for 35% of its revenue in 20221. This partnership played a crucial role in Perion’s financial landscape.

2. Search Advertising Decline: Changes in ad pricing and other mechanisms implemented by Microsoft Bing led to a decline in search advertising activity for Perion. As a result, the company had to revise its annual revenue forecast downward.

3. Financial Impact: Perion’s U.S.-listed shares plummeted by more than 35% premarket after the announcement. The company’s market capitalization is set to fall significantly, from over $990 million to about $613 million.

4. First Quarter Revenue: Perion now expects first-quarter revenue of $157 million, below Wall Street estimates of $175.5 million. The stock price also reflects this uncertainty, currently trading at $13.171.

5. 2024 Revenue Outlook: Previously, Perion anticipated 2024 revenue in the range of $860 million to $880 million. However, due to the Bing-related challenges, the revised expectation is now $590 million to $610 million.

6. Competition from Big Tech: Perion faces competition from tech giants like Alphabet’s Google and Facebook-parent Meta Platforms, which further impact its performance.

In summary, Microsoft Bing’s alterations in its search distribution marketplace had a substantial effect on Perion Network’s revenue and market position. The landscape of digital advertising continues to evolve, and companies must adapt to stay competitive. (Source: Reuters)

Https://wp-cdn.perion.com/wp-content/uploads/2024/04/08101131/Perion-PR-Preliminary-Q1-2024-Financial-Results-ENG-VF.pdf

Perion Network (PERI) down more than 37% after the company lowered its 2024 guidance for revenue and adjusted EBITDA due to a decline in search advertising activity in Q1.

Https://edge.media-server.com/mmc/p/93my32xz/

My apologies Hermano123 and best wishes for your Nexxen investment but I don't do off-piste.

Mike Lynch former CEO of Autonomy goes on trial in USA on Monday…

https://www.msn.com/en-gb/money/topstories/mike-lynch-goes-on-trial-in-us-over-silicon-valley-s-largest-fraud/ar-BB1k1TR4?ocid=msedgdhp&pc=ENTPSP&cvid=77e9585596ac4caaa483eba05d5c1a3f&ei=97

The Nexxen SSP has exclusivity to sell into TCL’s native display inventory.

Extract…Last spring, Nexxen SSP (then known as Unruly) and TCL announced their initial partnership to expand premium TV inventory access globally. The partnership granted advertisers direct access to impactful streaming supply in the TCL Channel, which includes popular entertainment, movies on-demand and live channels. Now, Nexxen will serve as the exclusive conduit for advertisers looking to tap into TCL's premium native display inventory as well as its CTV and OTT inventory, delivering unprecedented access to TCL's extensive and diverse user base to today’s brands and advertisers.

https://investors.nexxen.com/news-releases/news-release-details/nexxen-and-tcl-ffalcon-expand-partnership-bringing-native

As I read it, Teads has cornered an exclusive with Hisense/VIDAA for placing native ads on the ‘home screens’(Hisense’s content selection portal) of VIDAA driven televisions, initially in USA and now extended itinternationaly. That’s where you go to access the aps etc. Are we gathering the viewership data from that page? I don’t know for sure but I’d guess we are since Nexxen has an exclusive for that on all Hisense/VIDAA OEM tv’s.

https://www.digitaltveurope.com/2024/02/05/exclusive-vidaa-taps-teads-for-hisense-ctv-native-display-inventory/#close-modal

https://www.teads.com/vidaa-ctv-exclusivity-eastern-europe/

https://www.linkedin.com/posts/guy-edri-89663716_native-display-ads-are-working-and-its-activity-7173786907548491776-9XJc

Distributing the LG/Alphonso cash, perhaps?

Gdog, re your... Seems to me the market isn't buying what Ofer's selling. I shall remain skeptical until shown otherwise. This can turn quickly if we execute.

Everyone with an vested interest here, Ofer Druker and Sagi Niri included, know that we are now drinking in the Last Chance Saloon. It’s absolutely all about execution from here. Last orders have been called. They gotta execute. There's more than a few of us praying to money that they do.

“While competitors were able to focus exclusively on pitching customers for 2023, we were occupied with redefining our offerings, refining our story in market, as well as enhancing our platform capabilities, talent base, and marketing efforts for the longer term”.

Transcript extract….Throughout 2023, we were impacted by challenges related to the complex integration of Amobee, which contributed to a weaker than initially anticipated contribution ex-TAC. Keep in mind, with Amobee, we took a roughly 1,000-person company and integrated it with our preexisting employee base of around 600 employees to create a roughly 900-employee company at the end of 2023, a massive task which required a tremendous amount of the management team's focus. While competitors were able to focus exclusively on pitching customers for 2023, as soon as the acquisition closed, we were occupied with redefining our offerings, refining our story in market, as well as enhancing our platform capabilities, talent base, and marketing efforts for the longer term.

Additionally, the amount of time, resources, and focus required to combine platforms and integrate Amobee stack, establish our sales leadership team, and train our teams to sell an expanded product suite negatively impacted sales growth, largely through spending associated with several managed service clients, but we now believe we have the right platform and team in place and are seeing notable improvements. The good news is the bulk of these challenges are now behind us, and we are confident that Nexxen's sales team is strongly positioned to drive growth in 2024 as they are exclusively focused on selling, as opposed to integration initiatives, and are armed with a significantly enhanced platform loaded with in-demand tech and data capabilities. We continue to believe the short-term pain related to integrating Amobee will be well worth the long-term gain. We are also cautiously optimistic market conditions will improve in 2024 and agency customers will increasingly migrate from the lower-cost solutions they sold in 2023 to our premium programmatic video and streaming solutions.

Now, it's time for us to execute.

Tremor International Q4 2023 Earnings Call Transcript....

https://www.fool.com/earnings/call-transcripts/2024/03/06/tremor-international-trmr-q4-2023-earnings-call-tr/

1Q is traditionally the weakest quarter of the four, so I wouldn't raise my hopes for that quarter unduly. You may have noted that, nine weeks into this quarter and they didn't provide any guidance. Personally, I'll need to see traction from 2Q onward and for that to continue to build meaningfully through 2H.

I think we will be a lot wiser by the end of the year, if not sooner.

I can't see Nexxen ever achieving full value while it remains listed on AIM.

I can't assess the value of Amobee. Singtel built Amobee from a number of acquisitions which, from memory, cost c. $1 billion.

Integrating a business the size of Amobee and re-branding the company is no minor task. It could not have been achieved over the past year without burden and an adverse impact on the business. The past year has brought about an enormous upheaval for Nexxen and in an unfavorable macro environment to boot.