Azerion Group N.v · EURONEXT:AZRN
Azerion — H1 2022 Earnings Presentation
27 slides from Azerion's earnings presentation, 2022
Slide 1: Azerion
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Slide 2: Delivering on our strategy
Delivering on our strategy Customer revenue streams Consumers Advertisers We entertain audiences, and we help brands improve the way they engage with those audiences in the digital space Technology Game Digital Creators Publishers Revenue Content Audience Views Partners 2
Slide 3: Our scalable platform provides access to a global, diverse and engaged audience
Our scalable platform provides access to a global, diverse and engaged audience Consumers Advertisers Digital publishers Game creators 500m+ 575+ >1k 1.2k+ Unique 400k+ Digital Game Employees monthly Advertisers1 active users publishers1 creators2 HQ 8bn+ 300k+ >250 Amsterdam 19k+ Digital ads Averag
Slide 4: High growth, increasingly profitable and cash flow positive
High growth, increasingly profitable and cash flow positive ● Strong performance from both our STRONG TOP-LINE GROWTH segments (Platform and Premium 37%+ Games) Implied Revenue CAGR 2018-2022 ● Continued integration of acquisitions €384m+ PF for M&A ● On track for at least EUR 450 million revenue in
Slide 5: Spotlight on our Content and Consumers
Spotlight on our Content and Consumers Content is the biggest opportunity in the digital age. The future is digital entertainment 5
Slide 6: Our highly diversified and engaging free to play game content
Our highly diversified and engaging free to play game content Thousands of Casual Games monetized through advertisement Nine Premium Games monetized through in-game purchase Metaverse Social Card Games Average Average 18 min/day 80 min/day Spent by Spent by consumers consumers playing (on playing ou
Slide 7: Our game content appeals to all ages, nationalities and interests
Our game content appeals to all ages, nationalities and interests What age groups play our games?1 Where do our players play?2 Strategy Action Puzzle Europe 50.8% Undisclosed 65+ 22.7% 5% Tile matching Sports Asia 21.5% 353m 4 Male 32% 41-64 27.8% Unique game North America 13.9% Bubble Cards plays p
Slide 8: Content innovation is in our DNA
Content innovation is in our DNA Metaverse/Virtual Worlds 2 million Build communities and create opportunities for people to socialize and play 27K virtual items sold in H1 Partner with advertisers for in-game branding average visitors per concert Create and sell virtual items hosted in H1 Teletubbi
Slide 9: Spotlight on our Advertisers
Spotlight on our Advertisers Maximizing brand performance, delivering brand safety 9
Slide 10: We offer a fully comprehensive proposition to advertisers
We offer a fully comprehensive proposition to advertisers AdTech services Audience segmentation Curated content Country-level campaign management Note: Identified peers and market positioning and focus not intended to be exhaustive and is illustrative only. 10
Slide 11: Vertical integration maximizes efficiency for all parties
Vertical integration maximizes efficiency for all parties Illustrative allocation of highly intermediated ad spend vs. Azerion’s model Traditional ad spend value chain Azerion places ad on 3rd party content Azerion places ad on own content Azerion creates a win-win-win proposition: DSP 1 Digital pub
Slide 12: Spotlight on our Partners: Digital Publishers and Game Creators
Spotlight on our Partners: Digital Publishers and Game Creators Driving engagement, maximizing reach, capturing value 12
Slide 13: Partner with digital publishers to boost revenue with our content and tech
Partner with digital publishers to boost revenue with our content and tech A digital publisher can be anyone who connects with its customers - we provide them with three potential solutions... Full-service turnkey solutions AdTech and sales Gaming-as-a-service Help publishers maximize revenue from t
Slide 14: We enable game creators to distribute, monetize and optimize their games
We enable game creators to distribute, monetize and optimize their games >1k 19k+ >250 game creators Game titles Average new casual games published per month Innovate Distribute Optimize Monetize New content, new Connect a large, diverse Provide data and key insights Facilitate in-game purchases fea
Slide 15: We unlock new distribution and monetization solutions for Ubisoft
Case Study We unlock new distribution and monetization solutions for Ubisoft Azerion Azerion Ubisoft digital entertainment platform Digital Publishers media platform Advertisers Azerion made Hungry Game is published on Monetize Hungry Shark is a single player mobile game with Shark Arena, available
Slide 16: M&A track-record: completed acquisitions
M&A track-record: completed acquisitions 2021 2022 to date Content Platform Digital marketing company Real-time advertising Cloud-based digital logistics platform provider platform for gaming industry Madvertise Developer and publisher of online social games German and French subsidiaries of Madvert
Slide 17: Q2 and H1 2022 results
Q2 and H1 2022 results Resilient business model reflected in revenue and gross margin expansion 17
Slide 18: Business & Portfolio highlights
Business & Portfolio highlights • Accelerated the integration of previous acquisitions, with an increased focus on costs. • Partnership with ITV studios, for Love Island virtual villa in Hotel Hideaway • Habbo NFT partnerships: with Cyberkongs, Metaverse HQ and Metakey • Acquisition of Madvertise’s
Slide 19: Strong financial performance Q2 2022 with organic growth and accelerated integration of acquisitions
Q2 2022 Strong financial performance Q2 2022 with organic growth and accelerated integration of acquisitions EUR 104m +97% Net Revenue vs Q2 2021 ● Strong financial performance from Q2 2022 both Platform and Premium Games ● Nearly doubling the revenue, driven by acquisitions and organic growth ● Foc
Slide 20: Strong financial performance H1, on track for FY 2022 revenue delivery
H1 2022 Strong financial performance H1, on track for FY 2022 revenue delivery ● Increasing costs discipline in order EUR 198m +102% to prepare for macroeconomic scenarios in the second half of the Revenue vs H1 2021 year H1 2022 ● Accelerate the integration of our acquisitions ● Actively working on
Slide 21: Increasing our focus on operational efficiency and profitability
Increasing our focus on operational efficiency and profitability Accelerating the integration of Increased focus on cost Driving platform efficiencies our acquisitions management Launch of Azerion UK and Azerion Continuously increasing the Increased Group-wide cost focus France as umbrella brands fo
Slide 22: Group Financial Performance
Group Financial Performance Revenue €m ● Strong revenue growth, driven by acquisitions and 198.3 organic growth 103.9 98.3 52.7 Q2 2021 Q2 2022 H1 2021 H1 2022 Adjusted EBITDA €m ● Adj EBITDA increased steadily in Q2, with a strong 17.6 growth in H1 11.7 9.6 6.9 ● Improvement in gross profit margin
Slide 23: Platform Financial Performance
Platform Financial Performance Revenue €m ● Doubled revenue due to acquisitions and organic growth 154.6 82.0 ● Increased user engagement in our casual game 75.6 41.4 portfolio Q2 2021 Q2 2022 H1 2021 H1 2022 Adjusted EBITDA ● Steady gross margin growth; direct sales from €m local offices accounted
Slide 24: Premium Games Financial Performance
Premium Games Financial Performance Revenue €m ● Nearly doubled revenue due to the acquisition of Whow Games (Social Jackpot portals) and organic 43.7 growth 21.9 22.7 11.3 ● Improved performance from Governor of Poker 3, mainly driven by enhance user experience Q2 2021 Q2 2022 H1 2021 H1 2022 Adjus
Slide 25: Disclaimer
Disclaimer The following disclaimer applies to this document, any oral or video presentation of the information in this document by Azerion Holding B.V. (“Azerion Holding”), Azerion Group N.V. (“Azerion Group”) or any person on behalf of Azerion Holding or Azerion Group and any question-and-answer s
Slide 26: Forward-looking statement
Forward-looking statement The Information includes statements, including Azerion Holding’s or Azerion Group's financial and operational objectives that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements may be identified by the use of forward-looking terminol
Slide 27: Azerion
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