Nexxen International Ltd on Wednesday said it expects its adjusted earnings to recover in 2024, after it swung to a loss in 2023.

The New York-based advertising technology company, formerly known as Tremor International Ltd, said it swung to a pretax loss of $19.0 million in 2023 from a profit of $42.4 million in 2022.

Revenue edged down 1.0% to $332.0 million from $335.3 million.

Notably, operating costs increased 25% to $286.7 million from $229.8 million. Further, financing expenses more than doubled to $10.2 million from $4.6 million.

Looking ahead, Nexxen expects adjusted earnings before interest, tax, depreciation and amortisation to improve by 20% in 2024 to around $100 million from $83.2 million in 2023, but this still will be 31% below 2022’s $144.9 million.

Further, it expects contribution excluding traffic acquisition cost to improve by at least 8.2% to between $340 million and $350 million in 2024, from $314.2 million in 2023. Nexxen defines contribution ex-TAC as gross profit plus depreciation and amortization attributable to cost of revenue and cost of revenues, exclusive of depreciation and amortization, minus Performance media cost, or TAC.

Nexxen shares were up 2.4% to 214.00 pence each on Wednesday afternoon in London.

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