Azerion posts record platform profit, refocuses on ads

Azerion Group reported its strongest-ever quarter for its core Platform segment in Q4 2025, with continuing operations revenue up 11% year-on-year to €169.5 million. For full-year 2025, Platform revenue, which combines the Advertising Platform and AAA Game Distribution, rose 9% to €540.6 million.

Within the Platform, Advertising revenue grew 5% in 2025 to €432.1 million, while AAA Game Distribution climbed 28% to €108.5 million. In Q4 alone, AAA Game Distribution revenue increased 55% versus a year earlier, reflecting successful new releases and distribution agreements.

Adjusted EBITDA for continuing operations reached a quarterly record of €28.8 million in Q4 2025, up 13% year-on-year, and €67.1 million for the full year, 14% higher than 2024. The adjusted EBITDA margin for continuing operations held at 17% in Q4 and 12% for the year, which management describes as a preview of the Platform’s potential at scale.

Azerion has been restructuring around its Platform segment, which encompasses its Advertising Platform and AAA Game Distribution. In July 2025, the group sold Whow Games, the main part of its Premium Games segment, to DoubleDown Interactive, part of South Korea‑based DoubleUGames, for total consideration of up to €65 million.

The Premium Games activities are now treated as discontinued operations. Their revenue fell 46% in 2025 to €29.4 million and adjusted EBITDA declined 61% to €6.3 million. The Whow Games transaction, together with plans to dispose of remaining Premium Games assets, is described by Azerion as a decisive step to simplify its structure and reinforce digital advertising as its core business.

At group level, including discontinued operations, 2025 revenue rose 3% to €570.0 million. Adjusted EBITDA was slightly lower year-on-year at €73.4 million, but total EBITDA almost tripled to €63.9 million, helped by the gain on the Whow Games sale. Group operating profit swung to €16.3 million from a €23.8 million loss in 2024.

Azerion highlighted several operational drivers behind its 2025 Platform performance. Across continuing operations, the number of digital ads sold per month averaged 15.3 billion in Q4 2025, up 8.5% from 14.1 billion a year earlier. Growth was supported by demand in connected TV (CTV), audio, and digital out‑of‑home (DOOH) formats.

On the demand side, the company onboarded 19 new demand‑side platform connections in Q4 2025 and reported increased penetration in CTV budgets. Supply‑side expansion included integration of 77 new publishers and partnerships with platforms such as HBO Max Austria, Spotify (SPOT), RTL.fr and SoundCloud, strengthening its omnichannel inventory.

AI‑enabled Azerion Intelligence gains early traction

The group is also investing in cloud and AI infrastructure under the Azerion Intelligence brand. Launched in Q2 2025, Azerion Intelligence offers a multi‑cloud, multi‑AI architecture and is described as vendor‑neutral and scalable. In Q4 2025, partners including Flightradar24, Willhaben and AdElement were onboarded to this infrastructure.

Azerion says AI is being used to automate the ad campaign chain from configuration and creative design to optimisation and evaluation. Management expects this to structurally increase profitability and improve client results, while opening the platform to smaller, local advertisers by simplifying access to complex omnichannel campaigns.

Alongside its portfolio reshaping, Azerion has worked to improve its capital structure. In October 2025, the company refinanced its bond, issuing a new four‑year senior secured callable floating rate bond of €225 million under a €350 million framework. The new bond carries a lower margin of 5.5% over three‑month EURIBOR, compared with 6.75% previously.

As of 31 December 2025, group net interest‑bearing debt stood at €176.6 million on the bond’s terms, down from €202.8 million a year earlier. Total financial indebtedness was €235.1 million, offset by €58.5 million of cash and cash equivalents. The equity base was €23.6 million, with an equity ratio of just over 4% of total assets.

Capital expenditure on internally developed assets for continuing operations was €15.5 million in 2025, equivalent to 17% of gross personnel costs excluding restructuring expenses. This was broadly unchanged in absolute terms from 2024, indicating continued investment in platform innovation alongside cost‑saving measures.

For 2026, Azerion expects further efficiency gains as the full‑year effects of the 2025 bond refinancing, cost‑saving actions and removal of stranded Premium Games overheads are realised. Management reiterated a medium‑term adjusted EBITDA margin target of 14–16% and said the 17% adjusted EBITDA margin achieved in Q4 2025 for continuing operations shows what the Platform can deliver at scale.

Referencing recent market studies that point to about 5% annual growth in the group’s digital marketing segments, Azerion said it aims to outgrow sector averages and is targeting approximately 10% revenue growth in 2026. The company plans to shift its focus from restructuring to scaling its advertising and cloud‑AI businesses.

Chief Executive Officer Umut Akpinar described Azerion as entering 2026 with “a significantly more focused base,” after years of efforts to increase the focus, efficiency and profitability of the company. The board sees the divestment of non‑core assets, strengthened balance sheet and investments in AI‑driven infrastructure as key foundations for further top‑line growth and sustainable margin expansion.