Nexxen Share Discussion Threads

[gadgie2] 10/4/2024 07:28

Now that what you call confidence in this years numbers ! Come on

[whites123] 10/4/2024 07:09

Now, how much do we think we got from LG?

The $50 Million share buy back must now be about to make a hell of a difference to the share price

So pleased to say and mean it when I say

NEXXEN = STRONG BUY... :-)

[whites123] 10/4/2024 07:06

10 April 2024



Nexxen International Ltd.

("Nexxen" or the "Company")



Nexxen Announces Full Repayment of Outstanding $100 Million Long-Term Debt



The Company now has $90 million undrawn on its Revolving Credit Facility



Nexxen International Ltd. (AIM/NASDAQ: NEXN) ("Nexxen" or the "Company"), a global, unified advertising technology platform with deep expertise in video and Connected TV ("CTV"), announces that on 9 April 2024, the Company repaid its outstanding indebtedness under the secured Term Loan A, and the outstanding amount under the Revolving Credit Facility (together the "Credit Agreement"), entered on 12 September 2022. The Company also amended the Credit Agreement to, among other things, enable the additional $50 million Ordinary Share repurchase program previously announced on 15 March 2024.



The Company's payment to the Lenders under the Credit Agreement was approximately $100 million, which satisfied all of the Company's debt obligations under the Term A Secured Loan, in the amount of $90 million, and the previously drawn down amount of approximately $10 million under the Revolving Credit Facility. The Company did not incur any early termination penalties as a result of the repayment of indebtedness. The Company continues to have access to the $90 million Revolving Credit Facility, of which $0 has been drawn as of the date hereof, following the Company's repayment.



For more information about the Credit Agreement, investors can refer to Exhibit 4.6 to the Company's Annual Report on Form 20-F filed with the SEC on March 7, 2023.

[brimach1] 09/4/2024 20:28

muthadrucker. re naivety, Hendrix said this....I downgraded the stock in early 2023 after learning about then-CEO Doron Gerstel's intent to retire, as I considered him the mastermind behind Perion's impressive turnaround in recent years. During his tenure, Perion's share price soared by more than 500%: However, since he left in the company nine months ago, the multi-year streak of beat-and raise quarters has been broken, thus causing a severe drop in Perion's stock price: As recent changes in the advertising marketplace have contributed to the decline, I wouldn't blame the poor performance solely on new CEO Tal Jacobson, but in the end it is management's job to stay ahead of potential negative developments, particularly with Mr. Jacobson having been the longstanding head of Perion's search advertising business.

In addition, a number of competitors like PubMatic (PUBM), Criteo (CRTO) and The Trade Desk (TTD) have outperformed Perion quite handsomely in recent months:Two months ago, Perion's stock took a 20% haircut after the company issued full-year guidance below consensus expectations for the first time in many years.

However, the February decline was dwarfed by Monday's 40%+ selloff after Perion issued a truly massive earnings warning.

[muthadrucker] 09/4/2024 19:15

At least Nexxen had the foresight to get the Amobee deal done before the big revenue hit post Alphonso. Perion management are off the chart in terms of naivety and incompetence to be forecasting 14% revenue growth and Ebitda of 180m for fy24 half way through Q1 and then this! Perion were flying through 2022/23 and now they have zero credibility and 500m in cash. I think a value comparison with Perion is meaningless right now. And I’m guessing you think Pubmatic and Viant for example are massively overvalued?

[brimach1] 09/4/2024 18:19

muthadrucker. Yesterday’s rout reduced Perion’s market cap to about $600million (a reduction of about $380/390million).

With 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.

Yesterday’s Seeking Alpha article by Alex Hendrix, put 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......While the company's valuation has reached bargain levels, material uncertainties in combination with management having provided plenty of cause for investor distrust is likely to keep the stock in the penalty box until investors get a better impression of Perion Network's path forward.
For my part, I wouldn't be surprised to see Perion's board of directors making changes to senior management in the not-too-distant future.

Alex Hendrix records the same thinking 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.

[muthadrucker] 09/4/2024 16:39

Brimach, curious to know what you regard as equal par or what closing the gap equates to. The range of valuations in this sector is huge. TTD is in a league of its own so can dismiss them. Most of the other players have had a Microsoft or Alphonso moment in recent years and have failed to demonstrate a consistent and reliable growth path. Optimistically I’m looking at Pubmatic and Viant as valuation guides. For the moment they seem to be on a good track. Based on their revenues, ebitdas and cash positions it would seem reasonable for Nexxen to command an share price of £6+ if they deliver against guidance this year. If they’re on track through Q3 I still think a takeover is likely

[brimach1] 09/4/2024 14:36

I agree with Tapa. 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 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 minuscule 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, I think most will conclude that the route out of this for Perion may well be slow and bumpy.

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

[tapa7] 09/4/2024 11:28

"We continue to expand and strengthen our solutions and technologies by leveraging our cash flow generation and strong cash balance of almost HALF A BILLION USD to acquire companies that are complementary and additive to our growth."

Let's all hope they don't make an offer to acquire Nexxen...

[tapa7] 09/4/2024 11:20

This does not impact Nexxen in any negative way possible.

It's just that Microsoft has bought XANDR 3 years ago, they don't need Perion anymore to monetise display ads.

Perion has guided -50% profit for the full year. The only way they know they'll do 50% less EBITDA at this time of the year (April) is if MSFT has said something along the lines of: "guys we have to be fully transparent with you, we won't be renewing our contract with you this year, it was nice while it lasted, thank you and adios"

Meanwhile, Perion has $472m in cash and no debt. Market cap now is just over $500m.

Sometimes I think it's time for adtech companies to consolidate and fight the walled gardens but I haven't really put much thought as to how this could be done in a way that wouldn't be detrimental to the 2 merging companies. A merge means having to consolidate 2 platforms into 1 and would not necessarily mean that the new company retains the previously spent advertising dollars - Nexxen and Amobee are a clear example of this.

There's way too many adtech players, not all will survive.

[brimach1] 08/4/2024 16:32

Tractor….I wouldn’t apply a direct read-across to Nexxen. Perion is very reliant on it’s almost exclusive relationship with the Microsoft Bing search engine, and it’s that display add revenue (mostly) that’s been hit due to, quote….in the first quarter of 2024, Perion experienced a decline in Search Advertising activity, attributable to changes in advertising pricing and mechanisms implemented by Microsoft Bing in its Search Distribution marketplace. These adjustments led to a reduction in Revenue Per Thousand Impressions (RPM) for both Perion and other Microsoft Bing distribution partners. These changes contributed to decreased search volume….The decrease is mainly attributed to Search Advertising, and to a limited extent to the web video activity. The rest of the business indicators remain positive.

[midasx] 08/4/2024 16:22

Changes in ad pricing and other mechanisms by Microsoft Bing in its search distribution led to a decline in search advertising activity, Perion said on Monday.

Microsoft accounted for 35% of their income, always a risk factor. Advertising dollars spent on simple search will decline as voice controlled AI search takes over and eyes are removed from screens.

[tractorhead] 08/4/2024 16:15

Is this bad news for us do you think Brimach? Or is it specific to Perion with their microsoft connection?

[brimach1] 08/4/2024 15:46

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.

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

[wheeze] 06/4/2024 13:46

16 trading days of watching paint dry...

[midasx] 06/4/2024 13:23

Are we rocking and rolling yet?

Not long before the $50 million buyback kicks in.

[hammers8] 05/4/2024 12:00

Why wait til May

[barkbooo] 04/4/2024 12:51

Off piste - for the two members of the Sikhthetech fan club….TLY to drop under 4p …now odds on before May! lol

[wheeze] 04/4/2024 08:06

Hoping it stays down until I fill my ISA lol

[tsmith2] 04/4/2024 01:00

ofc I'm referring to the share price!

[tsmith2] 04/4/2024 01:00

Believe it or not I have a similar feeling, a sharp move up.

[barkbooo] 03/4/2024 17:59

No - second Wheeze. lol