Nexxen repurchases shares, plans new buyback program

Published 01/04/2025, 12:44
Nexxen repurchases shares, plans new buyback program

NEW YORK - Nexxen International Ltd. (NASDAQ: NEXN), a global advertising technology company currently valued at $530 million, has announced the repurchase of 1,498,918 Ordinary Shares at an average price of $7.96 under its ongoing $50 million share repurchase program. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment. As of March 31, 2025, Nexxen reported having 62,566,192 Ordinary Shares outstanding and approximately $5.5 million remaining in the current repurchase authorization.

The company also disclosed that its Board of Directors has approved a new $50 million share repurchase program set to commence on May 19, 2025, or upon the completion of the existing program. InvestingPro data highlights that management has been aggressively buying back shares, which is one of several bullish indicators identified by their analysis. Nexxen has committed to monthly updates on its share repurchase activity to maintain transparency with its U.S. and international shareholders.

Nexxen, headquartered in Israel with offices globally, operates a demand-side platform (DSP) and supply-side platform (SSP), centered around the Nexxen Data Platform. The company, which boasts an impressive 83.3% gross profit margin and has delivered a 94% return over the past year, specializes in data and advanced TV, offering services that include discovery, planning, activation, monetization, measurement, and optimization for its partners in the advertising industry.

The transition from AIM to a sole Nasdaq listing has altered the frequency of Nexxen’s share repurchase disclosures, with the company now choosing to provide monthly updates rather than daily as per previous AIM regulations. This approach is intended to balance best practices from both markets. For a comprehensive analysis of Nexxen’s financial health, growth prospects, and detailed valuation metrics, investors can access the full Pro Research Report available on InvestingPro, which covers over 1,400 US-listed companies.

The information provided is based on a press release statement from Nexxen International Ltd. and is intended to offer a factual update on the company’s recent financial activities and future plans regarding share repurchases. Nexxen’s forward-looking statements in the press release indicate their general capital allocation plans and intentions for announcing share repurchase results. However, these statements are not guarantees of future performance and are subject to risks and uncertainties.

In other recent news, Nexxen International reported its Q4 2024 earnings, significantly surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.48, far exceeding the forecasted $0.16, and reported revenue of $112.3 million, which also surpassed the expected $105.02 million. This strong financial performance was driven by a 15% year-over-year growth in programmatic revenue and a 38% increase in adjusted EBITDA. Nexxen’s strategic focus on generative AI and Connected TV (CTV) innovations is anticipated to bolster its market position in 2025. JMP analysts maintained their Market Outperform rating for Nexxen, highlighting the company’s unique data assets and partnerships with The Trade Desk and StackAdapt as key growth drivers. Nexxen’s ongoing share repurchase program and strategic investments in AI products set for a 2025 release are seen as crucial steps towards future growth. The company projects a full-year contribution ex-TAC of $380 million for 2025, with a focus on programmatic revenue, CTV, and data licensing growth. These developments reflect Nexxen’s robust sales execution and commitment to enhancing its platform capabilities.

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