Nexxen reduces credit facility and extends maturity to 2027

NEW YORK - Nexxen International Ltd. (NASDAQ: NEXN), a global advertising technology platform, has revised its revolving credit facility, reducing the committed amount and extending its maturity date. The company decreased the facility size from $90 million to $50 million and pushed the maturity to September 2027. This adjustment reflects Nexxen’s strong cash position, with the company maintaining more cash than debt on its balance sheet and a healthy current ratio of 1.46. The company has achieved a perfect Piotroski Score of 9, indicating exceptional financial health.According to InvestingPro analysis, Nexxen shows strong financial fundamentals with 16+ additional key insights available to subscribers.

Nexxen, known for its expertise in data and advanced TV, operates a flexible and unified technology stack that includes a demand-side platform (DSP) and supply-side platform (SSP). The core of its operation is the Nexxen Data Platform, which supports various advertising activities such as discovery, planning, activation, monetization, measurement, and optimization. These services are offered individually or as a comprehensive solution tailored to the needs of Nexxen’s global clientele, which includes advertisers, agencies, publishers, and broadcasters. The company’s business model has proven highly efficient, maintaining impressive gross profit margins of 84.38%.

The company, with headquarters in Israel, has a presence across the United States, Canada, Europe, and the Asia-Pacific region. Nexxen’s strategic move to amend its credit facility is part of its broader financial management efforts to ensure it can continue to support its business and growth initiatives effectively. The company’s stock has demonstrated strong performance, delivering a 95.33% return over the past year, with current analysis from InvestingPro suggesting the stock may be undervalued based on its Fair Value assessment.

While this press release contains forward-looking statements regarding the anticipated benefits of the amended credit facility and Nexxen’s future liquidity, these are not guarantees of future performance and are subject to various risks and uncertainties. The company has cautioned against placing undue reliance on these statements, which are based on current expectations and involve factors that could cause actual results to differ materially.

This news is based on a press release statement and does not include any promotional content or endorsements of the claims made by Nexxen International Ltd. The company’s recent financial maneuvering is part of its ongoing strategy to maintain a robust financial foundation for its operations and future growth.

In other recent news, Nexxen International Ltd. has been announced for inclusion in the Russell 3000 Index, which will also automatically place it in the small-cap Russell 2000 Index. This development is seen as a reflection of Nexxen’s growth and increased visibility within the U.S. investment community. In addition, Canaccord Genuity maintained a Buy rating on Nexxen, highlighting that the company’s first-quarter results exceeded expectations, particularly in its Connected TV services, which grew over 40% year-over-year. Raymond James and JMP Securities also maintained positive ratings, with both firms setting a price target of $15.00, citing Nexxen’s strategic investments and partnerships as key growth drivers.

Furthermore, Nexxen has announced plans to expand its partnership with VIDAA, aiming to extend its exclusive access to VIDAA’s Automatic Content Recognition data and ad monetization rights in North America. This memorandum of understanding is non-binding and subject to final agreements. Analysts from JMP Securities noted that the expiration of the VIDAA partnership is no longer a significant risk and that Nexxen’s new product cycle could lead to an increase in stock value. Nexxen’s strategic focus on leveraging its comprehensive platform and data solutions, alongside its investment in artificial intelligence, continues to underpin its growth trajectory.

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