Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Addresses [Line Items] | |
Entity Registrant Name | NEXXEN INTERNATIONAL LTD. |
Entity Central Index Key | 0001849396 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2023 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity a Well-known Seasoned Issuer | No |
Entity a Voluntary Filer | No |
Entity's Reporting Status Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Common Stock, Shares Outstanding | 146,162,009 |
Document Fiscal Period Focus | FY |
Document Fiscal Year Focus | 2023 |
Entity Interactive Data Current | Yes |
Entity Incorporation State Country Code | L3 |
Entity File Number | 001-40504 |
Entity Address, Address Line One | 82 Yigal Alon Street |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6789124 |
Entity Address, Country | IL |
Title of 12(b) Security | American Depositary Shares |
Trading Symbol | NEXN |
Security Exchange Name | NASDAQ |
Document Accounting Standard | International Financial Reporting Standards |
Document Registration Statement | false |
Auditor Firm ID | 1057 |
Auditor Location | Tel-Aviv, Israel |
Auditor Name | Somekh Chaikin |
ICFR Auditor Attestation Flag | false |
Document Financial Statement Error Correction [Flag] | true |
Document Financial Statement Restatement Recovery Analysis [Flag] | false |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 82 Yigal Alon Street |
Entity Address, City or Town | Tel Aviv |
Entity Address, Postal Zip Code | 6789124 |
Entity Address, Country | IL |
Contact Personnel Name | Sagi Niri |
City Area Code | 972 |
Local Phone Number | 3-545-3900 |
Contact Personnel Email Address | sniri@nexxen.com |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ASSETS: | ||
Cash and cash equivalents | $ 234,308 | $ 217,500 |
Trade receivables, net | 201,973 | 219,837 |
Other receivables | 8,293 | 23,415 |
Current tax assets | 7,010 | 750 |
TOTAL CURRENT ASSETS | 451,584 | 461,502 |
Fixed assets, net | 21,401 | 29,874 |
Right-of-use assets | 31,900 | 23,122 |
Intangible assets, net | 362,000 | 398,096 |
Deferred tax assets | 12,393 | 18,161 |
Investment in shares | 25,000 | 25,000 |
Other long-term assets | 525 | 406 |
TOTAL NON-CURRENT ASSETS | 453,219 | 494,659 |
TOTAL ASSETS | 904,803 | 956,161 |
LIABILITIES: | ||
Current maturities of lease liabilities | 12,106 | 14,104 |
Trade payables | 183,296 | 212,690 |
Other payables | 29,098 | 44,355 |
Current tax liabilities | 4,937 | 9,417 |
TOTAL CURRENT LIABILITIES | 229,437 | 280,566 |
Employee benefits | 237 | 238 |
Long-term lease liabilities | 24,955 | 15,234 |
Long-term debt | 99,072 | 98,544 |
Other long-term liabilities | 6,800 | 8,802 |
Deferred tax liabilities | 754 | 1,162 |
TOTAL NON-CURRENT LIABILITIES | 131,818 | 123,980 |
TOTAL LIABILITIES | 361,255 | 404,546 |
SHAREHOLDERS’ EQUITY: | ||
Share capital | 417 | 413 |
Share premium | 410,563 | 400,507 |
Other comprehensive loss | (2,441) | (5,801) |
Retained earnings | 135,009 | 156,496 |
TOTAL SHAREHOLDERS’ EQUITY | 543,548 | 551,615 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 904,803 | $ 956,161 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATION AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Profit or loss [abstract] | |||
Revenues | $ 331,993 | $ 335,250 | $ 341,945 |
Cost of Revenues (Exclusive of depreciation and amortization shown separately below) | 62,270 | 60,745 | 71,651 |
Research and development expenses | 49,684 | 33,659 | 18,422 |
Selling and marketing expenses | 105,914 | 89,953 | 74,611 |
General and administrative expenses | 51,051 | 68,005 | 63,499 |
Depreciation and amortization | 78,285 | 42,700 | 40,259 |
Other expenses (income), net | 1,765 | (4,564) | (959) |
Total operating costs | 286,699 | 229,753 | 195,832 |
Operating Profit (loss) | (16,976) | 44,752 | 74,462 |
Financing income | (8,192) | (2,284) | (483) |
Financing expenses | 10,200 | 4,611 | 2,670 |
Financing expenses, net | 2,008 | 2,327 | 2,187 |
Profit (loss) before taxes on income | (18,984) | 42,425 | 72,275 |
Tax benefit (expenses) | (2,503) | (19,688) | 948 |
Profit (loss) for the year | (21,487) | 22,737 | 73,223 |
Other comprehensive income (loss) items: | |||
Foreign currency translation differences for foreign operations | 2,126 | (6,499) | (2,632) |
Foreign currency translation for subsidiary sold reclassified to profit and loss | 1,234 | 0 | 0 |
Total other comprehensive income (loss) for the year | 3,360 | (6,499) | (2,632) |
Total comprehensive income (loss) for the year | $ (18,127) | $ 16,238 | $ 70,591 |
Earnings per share | |||
Basic earnings (loss) per share (in USD) | $ (0.15) | $ 0.15 | $ 0.51 |
Diluted earnings (loss) per share (in USD) | $ (0.15) | $ 0.15 | $ 0.48 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Share capital | Share premium | Other comprehensive income (loss) | Retained Earnings | Total |
Balance at Dec. 31, 2020 | $ 380 | $ 264,831 | $ 3,330 | $ 60,472 | $ 329,013 |
Total Comprehensive income (loss) for the year | |||||
Profit (loss) for the year | 0 | 0 | 0 | 73,223 | 73,223 |
Other comprehensive loss: | |||||
Foreign currency translation | 0 | 0 | (2,632) | 0 | (2,632) |
Foreign Currency Translation for subsidiary sold | 0 | ||||
Total comprehensive Income (loss) for the year | 0 | 0 | (2,632) | 73,223 | 70,591 |
Transactions with owners, recognized directly in equity | |||||
Revaluation of liability for put option on non- controlling interests | 0 | 0 | 0 | 64 | 64 |
Own shares acquired | (3) | (6,640) | 0 | 0 | (6,643) |
Share based compensation | 0 | 41,822 | 0 | 0 | 41,822 |
Exercise of share options | 17 | 1,353 | 0 | 0 | 1,370 |
Issuance of shares | 47 | 136,111 | 0 | 0 | 136,158 |
Issuance of Restricted shares | 1 | (1) | 0 | 0 | 0 |
Balance at Dec. 31, 2021 | 442 | 437,476 | 698 | 133,759 | 572,375 |
Total Comprehensive income (loss) for the year | |||||
Profit (loss) for the year | 0 | 0 | 0 | 22,737 | 22,737 |
Other comprehensive loss: | |||||
Foreign currency translation | 0 | 0 | (6,499) | 0 | (6,499) |
Foreign Currency Translation for subsidiary sold | 0 | ||||
Total comprehensive Income (loss) for the year | 0 | 0 | (6,499) | 22,737 | 16,238 |
Transactions with owners, recognized directly in equity | |||||
Own shares acquired | (50) | (86,202) | 0 | 0 | (86,252) |
Share based compensation | 0 | 47,049 | 0 | 0 | 47,049 |
Exercise of share options | 21 | 2,184 | 0 | 0 | 2,205 |
Balance at Dec. 31, 2022 | 413 | 400,507 | (5,801) | 156,496 | 551,615 |
Total Comprehensive income (loss) for the year | |||||
Profit (loss) for the year | 0 | 0 | 0 | (21,487) | (21,487) |
Other comprehensive loss: | |||||
Foreign currency translation | 0 | 0 | 2,126 | 0 | 2,126 |
Foreign Currency Translation for subsidiary sold | 0 | 0 | 1,234 | 0 | 1,234 |
Total comprehensive Income (loss) for the year | 0 | 0 | 3,360 | (21,487) | (18,127) |
Transactions with owners, recognized directly in equity | |||||
Own shares acquired | (8) | (9,306) | 0 | 0 | (9,314) |
Share based compensation | 0 | 19,141 | 0 | 0 | 19,141 |
Exercise of share options | 12 | 221 | 0 | 0 | 233 |
Balance at Dec. 31, 2023 | $ 417 | $ 410,563 | $ (2,441) | $ 135,009 | $ 543,548 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Profit (loss) for the year | $ (21,487) | $ 22,737 | $ 73,223 |
Adjustments for: | |||
Depreciation and amortization | 78,285 | 42,700 | 40,259 |
Net financing expense | 1,699 | 2,147 | 2,023 |
Loss from disposals of fixed and intangible assets | 2 | 542 | 0 |
Loss (gain) on leases modification | 119 | 56 | (377) |
Loss (gain) on sale of business unit | 1,765 | 0 | (982) |
Share-based compensation and restricted shares | 19,169 | 50,505 | 42,818 |
Tax (benefit) expense | 2,503 | 19,688 | (948) |
Change in trade and other receivables | 30,603 | 57,050 | (11,676) |
Change in trade and other payables | (43,077) | (100,145) | 26,845 |
Change in employee benefits | (1) | (179) | (69) |
Income taxes received | 352 | 1,175 | 2,231 |
Income taxes paid | (8,721) | (14,784) | (3,185) |
Interest received | 8,016 | 2,103 | 496 |
Interest paid | (8,486) | (587) | (570) |
Net cash provided by operating activities | 60,741 | 83,008 | 170,088 |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Change in pledged deposits, net | 1,498 | (213) | (11) |
Payments on finance lease receivable | 1,112 | 1,306 | 2,454 |
Repayment of long-term loans | 51 | 0 | 0 |
Acquisition of fixed assets | (4,495) | (6,433) | (3,378) |
Acquisition and capitalization of intangible assets | (15,126) | (8,750) | (4,966) |
Proceeds from sale of business unit | 0 | 1,180 | 415 |
Investment in shares | 0 | (25,000) | 0 |
Acquisition of subsidiaries, net of cash acquired | 0 | (195,084) | (11,001) |
Net cash used in investing activities | (16,960) | (232,994) | (16,487) |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Acquisition of own shares | (9,518) | (86,048) | (6,643) |
Proceeds from exercise of share options | 233 | 2,205 | 1,370 |
Leases repayment | (17,262) | (12,018) | (10,009) |
Issuance of shares, net of issuance cost | 0 | 0 | 134,558 |
Receipt of long-term debt, net of transaction cost | 0 | 98,917 | 0 |
Payment of financial liability | 0 | 0 | (2,414) |
Net cash provided by (used in) financing activities | (26,547) | 3,056 | 116,862 |
Net increase (decrease) in cash and cash equivalents | 17,234 | (146,930) | 270,463 |
CASH AND CASH EQUIVALENTS AS OF THE BEGINNING OF YEAR | 217,500 | 367,717 | 97,463 |
EFFECT OF EXCHANGE RATE FLUCTUATIONS ON CASH AND CASH EQUIVALENTS | (426) | (3,287) | (209) |
CASH AND CASH EQUIVALENTS AS OF THE END OF YEAR | $ 234,308 | $ 217,500 | $ 367,717 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of General Information [Abstract] | |
GENERAL | NOTE 1: GENERAL a. Reporting entity: Nexxen International Ltd. (the “Company” or “Nexxen International”), formerly known as Tremor International Ltd., was incorporated in Israel under the laws of the State of Israel on March 20, 2007. The ordinary shares of the Company are listed on the AIM Market of the London Stock Exchange and the American Depositary Shares ("ADSs"), each of which represents two ordinary shares of the Company, represented by the American Depositary Receipts ("ADR") are listed on the Nasdaq Capital Market. The address of the registered office is 82 Yigal Alon Street Tel-Aviv, 6789124, Israel. Nexxen International is a global Company offering a unified data-driven end-to-end software platform that supports a wide range of media types (e.g., video, display, etc.) and devices (e.g., mobile, Connected TVs, streaming devices, desktop, etc.), creating an efficient marketplace where advertisers (buyers) are able to purchase high quality advertising inventory from publishers (sellers) in real-time and at scale. Nexxen International’s technology stack is comprised of a Demand Side Platform (“DSP”), Supply-Side Platform (“SSP”), Ad Server, and Data Management Platform (“DMP”), empowering customers on both the buy- and sell-sides of the ecosystem to leverage a full suite of data-driven planning and technology solutions to achieve greater efficiency, effectiveness, and outcomes in their advertising efforts. The Company’s DSP solution is delivered through wholly owned subsidiary Nexxen Inc. (formerly known as Amobee Inc. and which also includes Tremor Video Inc.’s activity that was transferred to Nexxen Inc. in 2023) and is designed to assist customers in a self-managed or full-service capacity to plan and execute digital marketing campaigns in real-time across various ad formats. The Company’s SSP solution (delivered through Nexxen Group LLC, formerly known as Unruly Group, LLC) is designed to monetize digital inventory for publishers by enabling their content to have the necessary code and requirements for programmatic advertising integration, and provides access to significant amounts of data and unique demand to drive more effective inventory management and revenue optimization. The Company’s “DMP” integrates both its DSP and SSP solutions, enabling advertisers and publishers to use data from various sources, including web, social media, Connected TV and linear TV, and mobile devices, to optimize results of their advertising campaigns. Following the acquisition of Nexxen Inc., the Company gained a Linear TV Planning feature, enabling sellers at national broadcasters to generate linear TV plans during and after upfronts. Nexxen International Ltd. is headquartered in Israel and maintains offices throughout the U.S., Canada, EMEA and Asia-Pacific. On June 12, 2023, the Company initially rebranded all of its core products and platforms under the unified Nexxen brand. On January 2, 2024, the Company’s name was officially changed to Nexxen International Ltd. and, in connection with the change, its stock ticker on both the NASDAQ and London Stock Exchange changed from “TRMR” to “NEXN”. The Company believes rebranding and unifying under Nexxen has enhanced its commercial focus, and has better conveyed the holistic value proposition of its end-to-end technology stack to the market for its next phase of growth. As part of the rebranding, the Company changed the expected useful life of its previous brands, which completed by the end of the year. See Note 7. b. Definitions: In these financial statements – The Company - Nexxen International Ltd. The Group - Nexxen International Ltd. and its subsidiaries. Subsidiaries - Companies, the financial statements of which are fully consolidated, directly, or indirectly, with the financial statements of the Company such as Nexxen Group LLC, Unruly Holding Ltd, Tremor Video Inc, Nexxen Inc. Related party - As defined by IAS 24, “Related Party Disclosures”. |
BASIS OF PREPARATION
BASIS OF PREPARATION | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Basis Of Preparation [Abstract] | |
BASIS OF PREPARATION | NOTE 2: BASIS OF PREPARATION a. Statement of compliance: The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board ("IASB"). The consolidated financial statements were authorized for issue by the Company’s Board of Directors on March 5, 2024. b. Functional and presentation currency: These consolidated financial statements are presented in US Dollars (USD), which is the Company’s functional currency, and have been rounded to the nearest thousand, except when otherwise indicated. The USD c. Basis of measurement: The consolidated financial statements have been prepared on a historical cost basis except for the following assets and liabilities: • Deferred and current tax assets and liabilities • Provisions • Derivatives • Investment in shares For further information regarding the measurement of these assets and liabilities see Note 3 regarding material accounting policies. d. Use of estimates and judgments: The preparation of financial statements in conformity with IFRS requires management of the Group to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The preparation of accounting estimates used in the preparation of the Group’s financial statements requires management of the Group to make assumptions regarding circumstances and events that involve considerable uncertainty. Management of the Group prepares estimates on the basis of past experience, various facts, external circumstances, and reasonable assumptions according to the pertinent circumstances of each estimate. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. Information about assumptions made by the Group with respect to the future and other reasons for uncertainty with respect to estimates that have a significant risk of resulting in a material adjustment to carrying amounts of assets and liabilities in the next financial year are included in Note 6, on leases, with respect to determining the lease term and determining the discount rate of a lease liability, in Note 7, on intangible assets, with respect to the accounting of software development capitalization and impairment testing for goodwill, in Note 4, on Income Tax, with respect to uncertain tax position, in Note 18 on investments in shares. e. Change in classification: The Company changed the classification of the current maturities of the unfavorable contract from other payables to other long-term liabilities. Comparative amounts were reclassified for consistency in the amount of USD 1,350 thousand. f. Determination of fair value: Preparation of the financial statements requires the Group to determine the fair value of certain assets and liabilities. When determining the fair value of an asset or liability, the Group uses observable market data as much as possible. There are three levels of fair value measurements in the fair value hierarchy that are based on the data used in the measurement, as follows: • Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly. • Level 3: inputs that are not based on observable market data (unobservable inputs). Further information about the assumptions that were used to determine fair value is included in the following notes: • Note 17, on share-based compensation; • Note 18, on financial instruments; • Note 18, on investments in shares. |
MATERIAL ACCOUNTING POLICIES
MATERIAL ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 3: MATERIAL ACCOUNTING POLICIES The accounting policies set out below have been applied consistently for all periods presented in these consolidated financial statements and have been applied consistently by the Group. a. Financial instruments: 1) Non-derivative financial assets The Company’s non-derivative financial assets, which are measured at amortized cost, mainly consist of accounts receivable which are held to collect and deposits. Accounts receivable represent amounts owed by customers resulting from business transactions, and they are recognized at their original invoiced values, adjusted for expected credit losses. Loss rates are based on historical collection experience, while taking into consideration current customer information, collection history, and other relevant data at each reporting period. The Company’s non-derivative financial assets, which are measured at fair value through profit and loss, consist of investment in shares. Net gains and losses are recognized in profit or loss, finance income/expenses. 2) Non-derivative financial liabilities The Company’s non-derivative financial liabilities mainly include trade and other payables, and loan, all measured at amortized cost. 3) Treasury shares: When share capital recognized as equity is repurchased by the Group, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as a deduction in Share Premium. b. Fixed Assets: Fixed assets are measured at cost less accumulated depreciation. The cost of fixed assets includes expenditure that is directly attributable to the acquisition of the asset. Depreciation is provided on all property and equipment at rates calculated to write each asset down to its residual value (assumed to be nil), using the straight-line method, over its expected useful life as follows: Years Computers and servers 3-5 Office furniture and equipment 3-17 Leasehold improvements The shorter of the lease term and the useful life c. Intangible assets and liabilities: 1) Software development: Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group has the intention and sufficient resources to complete development and to use or sell the asset. The expenditure capitalized in respect of development activities includes the cost of direct labor costs that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognized in profit or loss as incurred. The estimated useful lives of developed software are three years. 2) Goodwill: The Group has identified its entire operation as a single cash generating unit (CGU). The Company conducts an annual assessment of goodwill impairment on an annual basis, at year end. According to management assessment as of December 31, 2023, no impairment in respect to goodwill has been recorded. See note 7. 3) Amortization: Internally generated intangible assets, such as software development costs, are not systematically amortized as long as they are not available for use, i.e., they are not yet on site or in working condition for their intended use. Goodwill is not systematically amortized as well but is tested for impairment at least once a year. Amortization is recognized in the statements of operation and other comprehensive income (loss) on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use. The estimated useful lives for the current and comparative periods are as follows: Trademark Fully depreciated, See note 7 Software (developed and acquired) 3 years Customer relationships 3-6 years Technology 3-5.25 years 4) Unfavorable contracts In the business combinations of Nexxen Inc., the Company recognizes a liability for contracts when their terms are unfavorable compared to market terms, to represent the off-market element at the acquisition date. As of December 31, 2023, the aggregated liability balance, in the amount of USD 6.7 million, is entirely classified as long-term. d. Share Based Compensation: Compensation expense related to stock options, restricted stock units and performance stock units. The Group’s employee stock purchase plan is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense related to stock options and restricted stock is recognized over the requisite service periods of the awards. Determining the fair value of stock options awards requires judgment. The Company’s use of the Black-Scholes option pricing model requires the input of subjective assumptions. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions and estimates are as follows: Risk-Free Interest Rate. The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities approximating the expected term of the awards. Expected Term. The expected term of an award is calculated based on the vesting date and the expiration date of the award. Volatility. The Company determined the price volatility based on daily price observations over a period equivalent to the expected term of the award. Dividend Yield. The dividend yield assumption is based on the Company’s history and current expectations of dividend payouts. Fair Value of Common Stock. The fair value of common stock is based on the closing price of the Company's common stock on the grant date. e. Employee benefits: 1) Post-employment benefits: The Group’s main post-employment benefit plan is under section 14 to the Severance Pay Law ("Section 14") for the Israeli employees and under section 401K for US employees, which is accounted for as a contribution plan. In addition, for certain employees, the Group has an additional immaterial plan that is accounted for as a defined benefit plan. These plans are usually financed by deposits with insurance companies or with funds managed by a trustee. 2) Short-term benefits: Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided or upon the actual absence of the employee when the benefit is not accumulated (such as maternity leave). A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The employee benefits are classified, for measurement purposes, as short-term benefits or as other long-term benefits depending on when the Group expects the benefits to be wholly settled. f. Revenue recognition: The Group generates revenue from transactions where it provides access to a platform for the purchase and sale of digital advertising inventory. Its customers are both ad buyers, including brands and agencies, and digital publishers. The Group generates revenue through platform fees that are tailored to fit the customer’s specific utilization of its solutions and include: (i) a percentage of spend, (ii) flat fees and (iii) fixed costs per mile (“CPM”). CPM refers to a payment option in which customers pay a price for every 1,000 impressions an advertisement receives. The Company maintains agreements with each publisher and buyer in the form of written service agreements, which set out the terms of the relationship, including payment terms and access to the Group’s platforms. Publishers provide digital advertising inventory to the Group’s platform in the form of advertising requests, or ad request. When the Group receives ad requests from a publisher, it send bid requests to buyers, which enable buyers to bid on sellers’ digital advertising inventory according to a predefined set of parameters (e.g., demographics, intent, location, etc.). Winning bids create advertising, or paid impressions, for the publisher to present to the buyers. The Group generates revenue from its Programmatic and Performance activities. Programmatic revenue is derived from the end-to-end platform of programmatic advertising, which uses software and algorithms to match buyers and sellers of digital advertising in a technology-driven marketplace. Performance revenue is derived from non-core activities, consisting of mobile-based activities that help brands reach their users. The Company concluded that its Programmatic activity (i) does not have manual control over the process, (ii) the Company is not primarily responsible for fulfillment, (iii) the Company has no inventory risk and (iv) the Company obtains only momentary a title to the advertising space offered via the end-to-end platform. As a result, the Group reports its Programmatic business, tech stack, features, business models and activity as an agent and therefore presented revenue from Programmatic on a net basis. For the Performance activity the Company is the primary obligor to provide the services and, as such, revenue is presented on a gross basis. Management is focused on driving growth with the Programmatic activity through the end-to-end platform, while the Performance activity is declining over time. The Group estimates and records reduction to revenue for volume discounts based on expected volume during the incentive term. The Group generally invoices buyers at the end of each month for the full purchase price of ad impressions monetized in that month. Accounts receivables are recorded at the amount of gross billings for the amount it is responsible to collect and accounts payable are recorded at the net amount payable to publishers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. g. Classification of expenses Cost of revenue Cost of revenues (exclusive of depreciation and amortization) primarily consists of hosting fees and data costs for both Programmatic and Performance activities, as well as media costs for Performance activities that are directly attributable to revenue generated by the Company and generally based on the revenue share arrangements with audience and content partners. See Note 13. Research and development Research and development expenses consist primarily of compensation and related costs for personnel responsible for the research and development of new and existing products and services. Where required, development expenditures are capitalized in accordance with the Company's standard internal capitalized development policy in accordance with IAS 38 (also see Note 3c(1)). All research costs are expensed when incurred. Selling and marketing Selling and marketing expenses consist primarily of compensation and related costs for personnel engaged in customer service, sales, and sales support functions, as well as advertising and promotional expenditures. General and administrative General and administrative expenses consist primarily of compensation and related costs for personnel, and include costs related to the Company’s facilities, finance, human resources, information technology, legal organizations and fees for professional services. Professional services are principally comprised of external legal, and information technology consulting and outsourcing services that are not directly related to other operational expenses. h. Financing income and expenses: Generally, foreign currency differences from a monetary item receivable from or payable to a foreign operation, including foreign operations that are subsidiaries, are recognized in profit or loss in the consolidated financial statements. Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are recognized in other comprehensive income (loss), and are presented within equity as part of the currency translation reserve. Financing income mainly comprises foreign currency gains and interest income. Financing expense primarily includes exchange rate differences, interest and bank fees. Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. i. Taxes on income The Company operates in multiple tax jurisdictions. Offset of deferred tax assets and liabilities Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority. Uncertain tax positions A provision for uncertain tax positions, including additional tax and interest expenses, is recognized when it is more likely than not that the Group will have to use its economic resources to pay the obligation. j. Leases: Leased assets and lease liabilities Contracts that award the Group control over the use of a leased asset for a period of time in exchange for consideration, are accounted for as leases. Upon initial recognition, the Group recognizes a liability at the present value of the balance of future lease payments (these payments do not include certain variable lease payments), and concurrently recognizes a right-of-use asset at the same amount of the lease liability, adjusted for any prepaid or accrued lease payments or provision for impairment, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the Group's leases is not readily determinable, the incremental borrowing rate of the lessee is used. Subsequent to initial recognition, the right-of-use asset is accounted for using the cost model and depreciated over the shorter of the lease term or useful life of the asset. Variable lease payments Variable lease payments that depend on an index or a rate, are initially measured using the index or rate existing at the commencement of the lease and are included in the measurement of the lease liability. When the cash flows of future lease payments change as the result of a change in an index or a rate, the balance of the liability is adjusted against the right-of-use asset. Depreciation of right-of-use asset After lease commencement, a right-of-use asset is measured on a cost basis less accumulated depreciation and accumulated impairment losses and is adjusted for re-measurements of the lease liability. Depreciation is calculated on a straight-line basis over the useful life or contractual lease period, whichever earlier, as follows: ☐ Buildings 1-8.5 years ☐ Data centers 1-5.5 years k. Initial application of new standards, amendments to standards and interpretations Amendment to IAS 1, Presentation of Financial Statements: "Disclosure of Accounting Policies. As a result of applying the Amendment, the extent of the accounting policy disclosure provided in the financial statements for 2023 was reduced and adjusted according to the Company’s specific circumstances. l. New standards, amendments to standards and interpretations not yet adopted: Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current and subsequent amendment: Non-Current Liabilities with Covenants. The Group is examining the effects of the Amendment on the financial statements with no plans for early adoption. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Income Tax [Abstract] | |
INCOME TAX | NOTE 4: INCOME TAX a. Details regarding the tax environment of the Israeli companies: 1) Corporate tax rate Taxable income of the Israeli companies is subject to the Israeli corporate tax at the rate of 23% in the years 2023, 2022 and 2021. 2) Benefits under the Law for the Encouragement of Capital Investments (Investment Law) The Investment Law provides tax benefits for Israeli companies meeting certain requirements and criteria. According to the Investment Law, a flat rate tax applies to companies eligible for the “Preferred Enterprise” status. In order to be eligible for Preferred Enterprise status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive factor for the gross domestic product. The Investment Law also added a new tax benefit tracks effective January 1, 2017 for a “preferred technological enterprise” and a “special preferred technological enterprise” that awards reduced tax rates to a technological industrial enterprise for the purpose of encouraging activity relating to the development of qualifying intangible assets. Preferred technological income that meets the conditions required in the law, will be subject to a reduced corporate tax rate of 12%, and if the preferred technological enterprise is located in Development Area A to a tax rate of 7.5%. The Investment Law also provides that no tax will apply to a dividend distributed out of preferred income to a shareholder that is an Israeli resident company. A tax rate of 20% shall apply to a dividend distributed out of preferred income and preferred technological income, to an individual shareholder or foreign resident, subject to double taxation prevention treaties. On May 16, 2017, the Knesset Finance Committee approved Encouragement of Capital Investment Regulations (Preferred Technological Income and Capital Gain of Technological Enterprise) – 2017 (hereinafter: “the Regulations”), which provides rules for applying the “preferred technological enterprise” and “special preferred technological enterprise” tax benefit tracks including the Nexus formula that provides the mechanism for allocating the technological income eligible for the benefits. The Company obtained tax rulings confirming that the Company is eligible for the benefits under the Investment Law. The tax rulings which were obtained applied for the years 2017-2021. The Company approached the Israeli Tax Authority on December 28, 2023, for the renewal of the tax ruling, regarding industrial enterprise and preferred technological enterprise, for the next five years beginning in 2022. The tax ruling has not been accepted yet. b. Details regarding the tax environment of the non-Israeli companies: Non-Israeli subsidiaries are taxed according to the tax laws in their countries of residence as reported in their statutory financial statement prepared under local accounting regulations. c. Carry forward losses (1) Israel As of December 31, 2023, the net operating loss carryforwards, or NOLs are approximately USD 20.4 million (2022: nil), and the Capital Loss to carry forward is approximately USD 3 million (2022: USD 0.1 million). The losses carryforward do not expire under Israeli tax laws. (2) US The Group submit a US federal consolidated tax return. Provisions enacted in the Tax Cuts and Jobs Act in 2017 related to the capitalization for tax purposes of research and experimental expenditures (“R&E”) became effective on January 1, 2022. These new R&E provisions require us to capitalize certain research and experimental expenditures and amortize them on the U.S. tax return over five or fifteen years, depending on where these costs are conducted. The tax expense in the U.S. would increase as a result, unless these provisions are modified through legislative processes in the future. The Company applies the new enacted act in the current year tax provision and the deferred tax asset. The Group has several U.S. federal NOLs, following previous acquisitions: 1. Approximately USD 100.8 million, which will expire starting 2038. As of December 31, 2023, the NOLs are approximately USD 56.7 million (2022: USD 65.7 million). 2. Approximately USD 315 million which can be utilized over the next 52 years. As of December 31, 2023, the NOLs are approximately USD 307.2 million (2022: USD 315 million). In addition, the Group has USD 0.5 million NOLs from previous years. In addition, the Capital Loss to carry forward is approximately USD 27.7 million (2022: nil). Capital losses can be carried back for three years, and forward for five years. Additionally, for tax years beginning after December 31, 2017, the Tax Cuts and Jobs Act limits the NOL deduction to 80% of taxable income, repeals carryback of all NOLs arising in a tax year ending after 2017 and permits indefinite carryforwards for all such NOLs. NOL’s arising in a tax year ending on or before 2017 can offset 100% of taxable income, are available for carryback, and expire 20 years after they arise. It should be noted that the Coronavirus Aid, Relief and Economic Security (“CARES”) Act suspended the 80% limitation for tax years 2018, 2019 and 2020 and allowed for a 5-year carryback for NOLs for tax years beginning after December 31, 2017, and before January 1, 2021. Pursuant to Section 382 of the Internal Revenue Code, the acquired companies in the US underwent ownership changes for tax purposes (i.e., a change of more than 50% in stock ownership involving 5% shareholders) on the acquisition date. As a result, the use of the Company’s total US NOL carryforwards and tax credits generated prior to the ownership change is subject to annual use limitations under Section 382 and potentially also under section 383 of the Code and comparable state income tax laws. (3) International As of December 31, 2023, the NOLs are approximately USD 19.2 million (2022: USD 22.3 million). In addition, the Capital Loss to carry forward is approximately USD 0.9 million (2022: nil). The ability to carry losses forward (or backwards) depends on the specific jurisdiction which the Company operates in. d. Composition of income tax benefit: Year ended December 31 2023 2022 2021 USD thousands Current tax expense (income) Current year (2,331 ) 14,378 7,220 Deferred tax expense (income) Creation and reversal of temporary differences 4,834 5,310 (8,168 ) Tax expenses (benefit) 2,503 19,688 (948 ) The following are the domestic and foreign components of the Group’s income taxes: Year ended December 31 2023 2022 2021 USD thousands Domestic (5,352 ) 5,766 4,995 US 8,712 11,578 (961 ) International (857 ) 2,344 (4,982 ) Tax expenses (benefit) 2,503 19,688 (948 ) e. Reconciliation between the theoretical tax on the pre-tax profit and the tax expense: Year ended December 31 2023 2022 2021 USD thousands Profit (Loss) before taxes on income (18,984 ) 42,425 72,275 Primary tax rate of the Company 23 % 23 % 23 % Tax calculated according to the Company’s primary tax rate (4,366 ) 9,758 16,623 Additional tax (tax saving) in respect of: Non-deductible expenses net of tax exempt income (*) 3,329 11,642 (3,364 ) Difference between measurement basis of income/expenses for tax purposes and measurement basis of income/expenses for financial reporting purposes - (654 ) - Effect of reduced tax rate on preferred loss (income) 4,963 (4,625 ) (7,226 ) Utilization of tax losses from prior years for which deferred taxes were not created (90 ) (2,539 ) (1,117 ) Effect on deferred taxes at a rate different from the primary tax rate 892 2,697 (3,329 ) Recognition of deferred taxes for tax losses and benefits from previous years for which deferred taxes were not created in the past (4,852 ) (1,104 ) (4,586 ) Recognition in temporary differences for which deferred taxes are not recognized 656 35 - Foreign tax rate differential 1,971 4,478 2,051 Tax (benefit) expenses 2,503 19,688 (948 ) Effective income tax rate (13 )% 46 % (1 )% (*) including non- deductible share-based compensation expenses. f. Deferred tax assets and liabilities: The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities are presented below: Intangible Assets and R&D expenses Employees Compensation Carryforward Losses Accrued Expenses Doubtful Debt Other Total USD thousands Balance of deferred tax asset (liability) as of January 1, 2022 (5,587 ) 12,074 9,835 2,939 3,099 676 23,036 Business combination (11,313 ) 1,502 7,857 1,322 973 2,158 2,499 Changes recognized in profit or Loss 5,019 (2,927 ) (2,486 ) (2,590 ) (1,332 ) (1,249 ) (5,565 ) Effect of change in tax rate - 14 237 - - 4 255 Changes recognized in equity 187 (3,417 ) (24 ) 22 11 (5 ) (3,226 ) Balance of deferred tax asset (liability) as of December 31, 2022 (11,694 ) 7,246 15,419 1,693 2,751 1,584 16,999 Discontinuance of Consolidation 168 (57 ) - (532 ) (99 ) (1 ) (521 ) Changes recognized in profit or Loss (524 ) (3,837 ) 411 (960 ) 643 (597 ) (4,864 ) Effect of change in tax rate - 30 - - - - 30 Changes recognized in equity (79 ) (34 ) 102 6 - - (5 ) Balance of deferred tax asset (liability) as of December 31, 2023 (12,129 ) 3,348 15,932 207 3,295 986 11,639 As of each reporting date, the Company’s management considers new evidence, both positive and negative, that could impact management’s view with regard to future realization of deferred tax assets. g. Uncertain tax positions: As of December 31, 2023, and 2022, the Company has gross unrecognized tax benefits of approximately USD 6,383 thousand and USD 7,188 thousand, respectively. The Company classifies liabilities for unrecognized tax benefits in current tax. h. Tax assessment: The Company considers tax year 2018 and 2019 for Israel and the US federal group, respectively as closed for tax assessment. |
FIXED ASSETS, NET
FIXED ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
FIXED ASSETS, NET | NOTE 5: FIXED ASSETS, NET Computers and Servers Office furniture and equipment Leasehold improvements Total USD thousands Cost Balance as of January 1, 2022 8,839 445 770 10,054 Exchange rate differences 53 41 20 114 Additions * 8,375 5 5 8,385 Business combinations 22,256 351 647 23,254 Disposals (892 ) (28 ) (336 ) (1,256 ) Balance as of December 31, 2022 38,631 814 1,106 40,551 Exchange rate differences (7 ) (13 ) (23 ) (43 ) Additions * 3,783 63 779 4,625 Disposals (482 ) (114 ) (94 ) (690 ) Balance as of December 31, 2023 41,925 750 1,768 44,443 Accumulated Depreciation Balance as of January 1, 2022 5,698 269 623 6,590 Exchange rate differences 57 41 18 116 Disposals (890 ) (28 ) (336 ) (1,254 ) Additions 4,957 61 207 5,225 Balance as of December 31, 2022 9,822 343 512 10,677 Exchange rate differences (9 ) (8 ) (1 ) (18 ) Disposals (482 ) (111 ) (93 ) (686 ) Additions 12,314 210 545 13,069 Balance as of December 31, 2023 21,645 434 963 23,042 Carrying amounts As of December 31, 2023 20,280 316 805 21,401 As of December 31, 2022 28,809 471 594 29,874 * As of December 31, 2023, USD 2,030 thousand additions have not been paid (2022: USD 1,900 thousand). |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Lease [Abstract] | |
LEASES | NOTE 6: LEASES a. Leases in which the Group is the lessee: The Group applies IFRS 16, Leases. The Group has lease agreements with respect to the following items: - Offices; - Data center; 1) Information regarding material lease agreements: a) The Group leases Offices mainly in the United States of America (US), Israel, Canada and UK with contractual original lease periods ends between the years 2024 and 2028 from several lessors. A lease liability in the amount of USD 21,381 thousand and USD 18,513 thousand as of December 31, 2023, and December 31, 2022, respectively, and right-of-use asset in the amount of USD 11,027 thousand and USD 7,753 thousand as of December 31, 2023, and December 31, 2022, respectively have been recognized in the statement of financial position in respect of leases of offices. b) The Group leases data center and related network infrastructure with contractual original lease periods ends between the years 2024 and 2028. The Group did not assume renewals in determination of the lease term unless the renewals are deemed to be reasonably assured at lease commencement. A lease liability in the amount of USD 15,680 thousand and USD 10,825 thousand as of December 31, 2023, and December 31, 2022, respectively, and right-of-use asset in the amount of USD 14,888 thousand and USD 10,520 thousand as of December 31, 2023, and December 31, 2022, respectively have been recognized in the statement of financial position in respect of data centers. 2) Lease liability: Maturity analysis of the Group's lease liabilities: December 31 2023 2022 USD thousands Less than one year (0-1) 12,106 14,104 One to five years (1-5) 24,955 15,234 Total 37,061 29,338 Current maturities of lease liability 12,106 14,104 Long-term lease liability 24,955 15,234 3) Right-of-use assets - Composition: Offices Data center Total USD thousands Balance as of January 1, 2022 5,424 2,849 8,273 Business Combinations 6,103 10,633 16,736 Depreciation and amortization on right-of-use assets (4,533 ) (4,693 ) (9,226 ) Additions 1,113 1,783 2,896 Lease modifications (74 ) - (74 ) Disposals (205 ) (52 ) (257 ) Exchange rate differences (75 ) - (75 ) Balance as of December 31, 2022 7,753 10,520 18,273 Discontinuance of consolidation (64 ) - (64 ) Depreciation and amortization on right-of-use assets (4,422 ) (10,579 ) (15,001 ) Net additions 7,871 14,969 22,840 Lease modifications 20 - 20 Disposals (119 ) (22 ) (141 ) Exchange rate differences (12 ) - (12 ) Balance as of December 31, 2023 11,027 14,888 25,915 4) Amounts recognized in statement of operation: Year ended December 31 2023 2022 2021 USD thousands Interest expenses on lease liability (1,885 ) (587 ) (570 ) Depreciation and amortization of right-of-use assets (15,001 ) (9,226 ) (6,334 ) Gain (loss) recognized in profit or loss (119 ) (74 ) 7 Total (17,005 ) (9,887 ) (6,897 ) 5) Amounts recognized in the statement of cash flows: Year ended December 31 2023 2022 2021 USD thousands Cash outflow for leases (19,147 ) (12,605 ) (10,579 ) b. Leases in which the Group is a lessor: 1) Information regarding material lease agreements: The Group subleases offices at the US for periods expiring in 2027. 2) Net investment in the lease: Presented hereunder is the movement in the net investment in the lease: Offices Year ended December 31 2023 2022 USD thousands Balance as of January 1, 4,849 5,682 Sublease receipts (1,112 ) (1,306 ) Additions 2,248 310 Business combinations - 163 Balance as of December 31, 5,985 4,849 3) Maturity analysis of net investment in finance leases: Year ended December 31 2023 2022 USD thousands Less than one year (0-1) 1,772 1,084 One to five years (1-5) 4,213 3,765 Total net investment in the lease as of December 31, 5,985 4,849 4) Amounts recognized in statement of operation: Offices Year ended December 31 2023 2022 2021 USD thousands Gain from finance subleases - - 301 Financing income on the net investment in the lease 221 199 245 Total 221 199 546 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7: INTANGIBLE ASSETS, NET Software Trademarks Customer relationships Technology Goodwill Total USD thousands Cost Balance as of January 1, 2022 24,687 36,367 50,108 53,192 156,712 321,066 Exchange rate differences (50 ) (1,262 ) (1,455 ) (548 ) (3,216 ) (6,531 ) Additions 8,750 - - - - 8,750 Disposals (1,199 ) (19,570 ) (2,393 ) (4,851 ) - (28,013 ) Business combinations - 7,654 29,169 85,684 92,244 214,751 Balance as of December 31, 2022 32,188 23,189 75,429 133,477 245,740 510,023 Exchange rate differences 25 485 455 272 874 2,111 Additions 15,187 - - - - 15,187 Disposals (12 ) (23,674 ) (1,845 ) - (262 ) (25,793 ) Balance as of December 31, 2023 47,388 - 74,039 133,749 246,352 501,528 Amortization Balance as of January 1, 2022 14,876 29,786 28,223 39,961 - 112,846 Exchange rate differences 2 (585 ) (914 ) (198 ) - (1,695 ) Additions 6,189 2,514 9,289 10,257 - 28,249 Disposals (659 ) (19,570 ) (2,393 ) (4,851 ) - (27,473 ) Balance as of December 31, 2022 20,408 12,145 34,205 45,169 - 111,927 Exchange rate differences 15 355 353 157 - 880 Additions 7,172 11,174 12,407 21,499 - 52,252 Disposals (12 ) (23,674 ) (1,845 ) - - (25,531 ) Balance as of December 31, 2023 27,583 - 45,120 66,825 - 139,528 Carrying amounts As of December 31, 2023 19,805 - 28,919 66,924 246,352 362,000 As of December 31, 2022 11,780 11,044 41,224 88,308 245,740 398,096 Capitalized development costs Development costs capitalized in the period amounted to USD 14,222 thousand (2022: USD 8,743 thousand) and were classified under software. Acceleration of Trademarks As detailed in Note 1, following the decision to rebrand to Nexxen, the Group accelerated the amortization of its trademark assets, whose useful life ended on December 31, 2023. Impairment testing for intangible assets The Company's qualitative assessment during the years ended December 31, 2023, and December 31, 2022, did not indicate that it is more likely than not that the recoverable amount of its intangible assets, and other long-lived assets is less than their aggregate carrying amount. As of December 31, 2023, and as of December 31, 2022, the estimated recoverable amount based on Company’s market value was lower than the carrying amount, and therefore the recoverable amount was estimated based on value in use and was determined by discounting the future cash flows. The estimated value in use was higher than the carrying amount, and therefore there was no need for impairment. Key assumptions used in the calculation of recoverable amounts are as of December 31, 2023: Post-tax discount rate 14% (WACC) Terminal value growth rate 3% EBITDA growth rate 26%-42% Key assumptions used in the calculation of recoverable amounts are as of December 31, 2022: Post-tax discount rate 15% (WACC) Terminal value growth rate 3% EBITDA growth rate 21%-33% The cash flow projections include specific estimates for four years and a terminal value growth rate thereafter. EBITDA growth rate is expressed as the annual growth rate in the initial five years of the plans used for impairment testing and has been mainly based on past experience and management expectations. |
TRADE AND OTHER RECEIVABLES
TRADE AND OTHER RECEIVABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other current receivables [abstract] | |
TRADE AND OTHER RECEIVABLES | NOTE 8: TRADE AND OTHER RECEIVABLES December 31 2023 2022 USD thousands Trade receivables: Trade receivables 219,396 229,975 Allowance for expected credit losses (17,423 ) (10,138 ) Trade receivables, net 201,973 219,837 Other receivables: Prepaid expenses 4,988 14,425 Loan to a third party 104 - Institutions 1,309 1,281 Pledged deposits 1,569 3,036 Acquisition consideration adjustment - 4,673 Other 323 - 8,293 23,415 |
TRADE AND OTHER PAYABLES
TRADE AND OTHER PAYABLES | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables [abstract] | |
TRADE AND OTHER PAYABLES | NOTE 9: TRADE AND OTHER PAYABLES December 31 2023 2022 USD thousands Trade payables 183,296 212,690 Other payables: Contract liabilities 8,366 6,540 Wages, salaries and related expenses 13,319 24,539 Provision for vacation 1,922 1,869 Institutions 1,603 1,659 Interest to pay 1,757 1,504 Pledged deposits 284 362 Others 1,847 7,882 29,098 44,355 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 10: CASH AND CASH EQUIVALENTS December 31 2023 2022 USD thousands Cash 105,997 173,568 Bank deposits 128,311 43,932 Cash and cash equivalents 234,308 217,500 The majority of cash and cash equivalents bear interest of 3% to 5.5%. The Group’s exposure to credit, and currency risks are disclosed in Note 18 on financial instruments. |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2023 | |
Other Long Term Liabilities [Abstract] | |
LONG-TERM DEBT | NOTE 11: LONG-TERM DEBT In September 2022, Nexxen Group US Holdings Inc. (formerly known as Unruly Group US Holding Inc.) entered into a USD 90 million senior secured term loan facility (the Term Loan Facility) and a USD 90 million senior secured revolving credit facility (the Revolving Credit Facility and, together with the Term Loan Facility, collectively, the Credit Facilities). The Company used the net proceeds of the Term Loan Facility and USD 10 million of net proceeds of the Revolving Credit Facility to finance the acquisition of Nexxen Inc. The loan period is 3 years from the date it was obtained. The Company is obligated to pay a commitment fee on the undrawn amounts of the Revolving Credit Facility at an annual rate, determined by the Company’s total net leverage ratio. The Credit Facilities require compliance with various financial and non-financial covenants, including affirmative and negative covenants. The financial covenants require that the total net leverage ratio not exceed 3x and the interest coverage ratio not be less than 4x, in each case measured as of the end of each fiscal quarter. As of December 31, 2023, the Company is in compliance with all related covenants. During the twelve-month periods ended December 31, 2023, the Company recognized interest expenses in the amounts of USD 6,854 thousand. Total interest paid during the twelve months ended December 31, 2023, was USD 6,601 thousand. |
REVENUES
REVENUES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Revenue [Abstract] | |
REVENUE | NOTE 12: REVENUES Year ended December 31 2023 2022 2021 USD thousands Programmatic 299,005 274,355 266,616 Performance 32,988 60,895 75,329 331,993 335,250 341,945 For the year ended December 31, 2023, no individual buyer accounted for more than 10% of revenue. For the year ended December 31, 2022 one buyer represents 10.7% of revenue. For the year ended December 31, 2021 one buyer represents 13.6% of revenue. |
COST OF REVENUE
COST OF REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Cost Of Revenue [Abstract] | |
COST OF REVENUE | NOTE 13: COST OF REVENUE Year ended December 31 2023 2022 2021 USD thousands Programmatic 44,385 35,110 31,572 Performance 17,885 25,635 40,079 Cost of Revenue 62,270 60,745 71,651 |
GENERAL AND ADMINISTRATIVE EXPE
GENERAL AND ADMINISTRATIVE EXPENSES | 12 Months Ended |
Dec. 31, 2023 | |
Selling, general and administrative expense [abstract] | |
GENERAL AND ADMINISTRATIVE EXPENSES | NOTE 14: GENERAL AND ADMINISTRATIVE EXPENSES Year ended December 31 2023 2022 2021 USD thousands Wages, salaries and related expenses 21,835 18,933 17,755 Share base payments 12,121 31,878 32,250 Rent and office maintenance 2,432 319 549 Professional expenses 7,686 12,233 7,136 Doubtful debts 4,337 (3,167 ) 4,958 Acquisition costs 171 6,012 253 Other expenses 2,469 1,797 598 51,051 68,005 63,499 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
SHAREHOLDERS’ EQUITY | NOTE 15: SHAREHOLDERS’ EQUITY Issued and paid-in share capital: Ordinary Shares 2023 2022 Number of shares Balance as of January 1 144,477,962 154,501,629 Own shares held by the Group (2,729,597 ) (16,906,795 ) Share based compensation 4,413,644 6,883,128 Issued and paid-in share capital as of December 31 146,162,009 144,477,962 Authorized share capital 500,000,000 500,000,000 Rights attached to share: The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at general meetings of the Company. All shares rank equally with regard to the Company’s residual assets. Own shares acquisition: During 2022, the Board of Directors approved the share buyback programs of up to USD 95 million of its ordinary shares out of which the Group repurchased 16,906,795 ordinary shares in aggregate amount of USD 86.3 million and during 2023, the Company repurchased 2,505,851 ordinary shares in aggregate amount of USD 8.7 million which was financed by existing cash resources. On December 18, 2023, the Company has received approval from the Israeli court for its motion to buy back an additional USD 20 million of its ordinary shares from time-to-time through June 18, 2024. In 2023, the Company repurchased 221,506 ordinary shares in aggregate amount of USD 0.6 million which was financed by existing cash resources. In addition, in July 2023, the Group repurchased 2,240 restricted ordinary shares that did not vest from one of its employees for no consideration. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
EARNINGS (LOSS) PER SHARE | NOTE 16: EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share The calculation of basic earnings (loss) per share as for the year ending December 31, 2023, 2022 and 2021 was based on the profit (loss) for the year divided by a weighted average number of ordinary shares outstanding, calculated as follows: Profit (loss) for the year: Year ended December 31 2023 2022 2021 USD thousands Profit (loss) for the year (21,487 ) 22,737 73,223 Weighted average number of ordinary shares: Year ended December 31 2023 2022 2021 Shares of NIS 0.01 par value Weighted average number of ordinary shares used to calculate basic earnings (loss) per share as at December 31 143,589,188 149,937,339 144,493,989 Basic earnings (loss) per share (in USD) (0.15 ) 0.15 0.51 Diluted earnings (loss) per share: The calculation of diluted earnings (loss) per share as of December 31, 2023, 2022 and 2021 was based on profit (loss) for the year divided by a weighted average number of shares outstanding after adjustment for the effects of all dilutive potential ordinary shares, calculated as follows: Weighted average number of ordinary shares (diluted): Year ended December 31 2023 2022 2021 Shares of NIS 0.01 par value Weighted average number of ordinary shares used to calculate basic earnings per share 143,589,188 149,937,339 144,493,989 Effect of share options on issue - 3,120,304 8,212,903 Weighted average number of ordinary shares used to calculate diluted earnings per share 143,589,188 153,057,643 152,706,892 Diluted earnings per share (in USD) (0.15 ) 0.15 0.48 At December 31, 2023 6,749 thousand share options, RSUs and PSUs (in 2022 and 2021: 8,851 thousand and 3,061 thousand, respectively) were excluded from the diluted weighted average number of ordinary shares calculation as their effect would have been anti-dilutive. |
SHARE-BASED COMPENSATION ARRANG
SHARE-BASED COMPENSATION ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | |
SHARE-BASED COMPENSATION ARRANGEMENTS | NOTE 17: SHARE-BASED COMPENSATION ARRANGEMENTS a. Share-based compensation plan: The terms and conditions related to the grants of the share options programs are as follows: • All the share options that were granted are non-marketable. • All options are to be settled by physical delivery of ordinary shares or ADSs. • Vesting conditions are based on a service period of between 0.5-4 years. b. Stock Options: The number of share options is as follows: Number of options Weighted average exercise price 2023 2022 2023 2022 (Thousands) (USD) Outstanding of 1 January 4,772 6,026 7.31 6.54 Forfeited during the year (721 ) (828 ) 6.33 7.61 Exercised during the year (346 ) (1,046 ) 0.67 1.96 Granted during the year - 620 - 7.22 Outstanding of December 31 3,705 4,772 7.91 7.31 Exercisable of December 31 2,086 1,814 The total expense recognized in the year ended December 31, 2023, with respect to the options granted to employees, amounted to approximately USD 2,429 thousand (2022: USD 5,867 thousand). c. Restricted Share Units: During 2023 and 2022, the Group granted 352,800 and 777,448 Restricted Share Units (RSUs) to its executive officers and employees, respectively. The number of restricted share units is as follows: Number of RSU’s Weighted-Average Grant Date Fair Value 2023 2022 2023 2022 (Thousands) Outstanding at 1 January 5,288 8,146 8.277 8.606 Forfeited during the year (254 ) (261 ) 6.275 9.948 Exercised during the year (3,295 ) (3,374 ) 8.208 8.091 Granted during the year 353 777 2.160 4.596 Outstanding at December 31 2,092 5,288 7.601 8.277 The total expense recognized in the year ended December 31, 2023, with respect to the RSUs granted to employees, amounted to approximately USD 13,356 thousand (2022: USD 31,923 thousand). d. Performance Stock Units: During 2023 and 2022, the Group granted 143,700 and 168,048 Performance Stock Units (PSUs) to its executive officers, respectively. The number of performance stock units is as follows: Number of PSU’s Weighted-Average Grant Date Fair Value 2023 2022 2023 2022 (Thousands) Outstanding at January 1 1,992 4,486 8.937 6.796 Forfeited during the year (254 ) (80 ) 6.328 9.952 Exercised during the year (930 ) (2,582 ) 9.320 4.891 Granted during the year 144 168 2.160 4.453 Outstanding at December 31 952 1,992 8.238 8.937 The vesting of the PSUs is subject to continuous employment and compliance with the performance criteria determined by the Company’s Remuneration Committee and the Company’s Board of Directors. The total expense recognized in the year ended December 31, 2023, with respect to the PSUs granted to employees, amounted to approximately USD 3,384 thousand (2022: USD 12,715 thousand). e. Expense recognized in the statement of operation and other comprehensive income is as follows: Year ended December 31 2023 2022 2021 USD thousands Selling and marketing 3,740 10,594 7,094 Research and development 3,308 8,034 3,474 General and administrative 12,121 31,877 32,250 19,169 50,505 42,818 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
FINANCIAL INSTRUMENTS | NOTE 18: FINANCIAL INSTRUMENTS a. Overview: The Group has exposure to the following risks from its use of financial instruments: ☐ Credit risk ☐ Liquidity risk ☐ Market risk This note presents quantitative and qualitative information about the Group’s exposure to each of the above risks, and the Group’s objectives, policies and processes for measuring and managing risk. In order to manage these risks and as described hereunder, the Group executes transactions in derivative financial instruments. Presented hereunder is the composition of the derivatives: December 31 2023 2022 USD thousands Derivatives presented under current assets Forward exchange contracts used for hedging 123 - Derivatives presented under current liability Forward exchange contracts used for hedging - (209 ) Total 123 (209 ) b. Risk management framework: The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Board is responsible for developing and monitoring the Group’s risk management policies. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management of standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Group Audit Committee oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group Audit Committee is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Audit Committee. c. Credit risk: The Group’s credit risk is arise from the risk of financial loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date was as follows: December 31 2023 2022 USD thousands Cash and cash equivalents 234,308 217,500 Trade receivables, net (a) 201,973 219,837 Other receivables 1,996 7,709 Long term deposit 525 406 438,802 445,452 (a) At December 31, 2023, the Group included provision for doubtful debts in the amount of USD 17,423 thousand (December 31, 2022: USD 10,138 thousand) in respect of collective impairment provision and specific debtors that their collectability is in doubt. As of December 31, 2023, two buyers accounted for 16.2% and 16.5% of trade receivables. As of December 31, 2022, two buyers accounted for 15.7% and 14.1% of trade receivables. Allowance for Doubtful debts 2023 2022 USD thousands Balance at January 1 10,138 13,870 Allowance for doubtful debts expenses (income) 7,622 (3,167 ) Discontinuance of consolidation (275 ) - Write-off (22 ) (542 ) Exchange rate difference (40 ) (23 ) Balance at December 31 17,423 10,138 d. Liquidity risk: Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. As of December 31, 2023, and December 31, 2022, the Group’s contractual obligation of financial liability is in respect of leases, trade, and other payables in the amount of USD thousand and USD 332,782 thousand and USD 361,820 thousands, respectively. The contractual maturity of the financial liability that is less than one year is in the amount of USD 201,955 thousand and USD 239,240 thousand for December 31, 2023, and December 31, 2022, respectively. e. Market risk: Market risk is the risk that changes in market prices, such as foreign exchange rates, the CPI, interest rates and equity prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. At December 31, 2023, USD 14,027 thousand are held in AUD, USD 5,653 thousand are held in NIS, USD 4,571 thousand are held in EUR, USD 2,981 thousand are held in SGD, USD 2,692 thousand are held in CAD, USD 2,665 thousand are held in GBP, USD 2,040 thousand are held in JPY, USD 1,493 thousand are held in other currencies and the remainder held in USD. As of December 31, 2023, no individual vendor accounted for more than 10% of trade payables. As of December 31, 2022, one vendor accounted for 12.7% of trade payables. f. Sensitivity analysis: A change as of December 31 in the exchange rates of the following currencies against the USD, as indicated below, would have affected the measurement of financial instruments denominated in a foreign currency and would have increased (decreased) profit or loss and equity by the amounts shown below (after tax). This analysis is based on foreign currency exchange rate that the Group considered to be reasonably possible at the end of the reporting period. The analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecasted sales and purchases. 2023 2022 GBP/USD +10% -10% +10% -10% USD thousands Profit / (Loss) (1,832 ) 1,832 (2,893 ) 2,893 Increase / (Decrease) in Shareholders’ Equity (9 ) 9 (94 ) 94 2023 2022 NIS/USD +10% -10% +10% -10% USD thousands Profit / (Loss) 353 (353 ) (139 ) 139 Increase / (Decrease) in Shareholders’ Equity 384 (384 ) (107 ) 107 2023 2022 SGD/USD +10% -10% +10% -10% USD thousands Profit / (Loss) (2,348 ) 2,348 (2,615 ) 2,615 Increase / (Decrease) in Shareholders’ Equity (6 ) 6 (320 ) 320 Linkage and foreign currency risks Currency risk The Group is not exposed to currency risk on sales and purchases that are denominated in a currency other than the respective functional currency of the Group, the USD. The principal currencies in which these transactions are denominated are GBP, NIS, EURO, CAD, SGD, MXN, AUD and JPY. At any point in time, the Group aims to match the amounts of its assets and liabilities in the same currency in order to hedge the exposure to changes in currency. In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short-term imbalances. Interest rate risk The Group has a cash flow risk due to its variable-rate debt instruments. A 5% increase in the interest rate would result in a loss and a decrease in shareholders' equity of USD 3.7 million. However, it will be offset by a gain and shareholders' increase of USD 2.8 million due to available cash and cash equivalents. As a result, there would be a net effect of USD 0.9 million. g. Level 3 financial instruments carried at fair value On August 18, 2022, the Company completed a USD 25 million investment in VIDAA, a smart TV operating system, streaming platform, and subsidiary of Hisense. Through its investment, the Company received a 2.5% equity stake in VIDAA, a multi-year extension to exclusively share of VIDAA’s global ACR data for targeting and measurement across the Company’s platform, and ad monetization exclusivity on VIDAA media in the U.S., U.K., Canada, and Australia. The investment in shares is a financial asset measured at fair value through profit or loss under level 3. December 31, 2023 December 31, 2022 Level 3 Level 3 USD thousands USD thousands Financial assets measured at fair value through profit or loss: Investment in shares 25,000 25,000 Valuation processes used by the Company The fair value of non-marketable shares is determined by external valuer on an annual basis. The principal unobservable inputs are as follows: • The estimated royalties from App share and remote-control button which is based on the expected increase in market share. • The average operating profit margin which is based on the stage of research and development. • The discount rate, which is based on the risk-free rate for 10-year debentures issued by the government in the relevant market, adjusted for a risk premium to reflect both the risk of investing in equities, the systematic risk of company and entity specific risk to the extent not already reflected in the cash flows. h. Financial instruments measured at fair value for disclosure purposes only. The fair value of the long term debt is estimated by discounting future principal and interest cash flows by the market interest rate of 7.064% on the date of measurement which is USD 97,291 thousands. |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTIES | NOTE 19: RELATED PARTIES Compensation and benefits to key management personnel Executive officers also participate in the Company’s share option programs. For further information see Note 17 regarding share-based compensation. Compensation and benefits to key management personnel (including directors) that are employed by the Company and its subsidiaries: Year ended December 31 2023 2022 2021 USD thousands Share-based compensation 11,527 30,914 31,283 Other compensation and benefits 3,988 4,433 6,752 Total 15,515 35,347 38,035 |
SUBSIDIARIES
SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of subsidiaries [abstract] | |
SUBSIDIARIES | NOTE 20: SUBSIDIARIES Details in respect of subsidiaries: Presented hereunder is a list of the Group’s subsidiary: Principal The Group’s ownership interest location of the in the subsidiary for the year ended Company’s December 31 Name of company activity 2023 2022 Taptica Inc USA 100 % 100 % Tremor Video Inc USA 100 % 100 % Adinnovation Inc Japan - 100 % Taptica UK UK 100 % 100 % YuMe Inc* USA 100 % 100 % Perk.com Canada Inc Canada 100 % 100 % R1Demand LLC* USA 100 % 100 % Nexxen Group LLC (f/k/a Unruly Group LLC) USA 100 % 100 % Nexxen Group US Holdings Inc. (f/k/a Unruly Group US Holding Inc)* USA 100 % 100 % Nexxen Holdings Ltd (f/k/a Unruly Holdings Limited)* UK 100 % 100 % Nexxen Group Ltd (f/k/a Unruly Group Limited)* UK 100 % 100 % Unruly Media GmbH Germany 100 % 100 % Unruly Media Pte Ltd* Singapore 100 % 100 % Nexxen Pty Ltd (f/k/a Unruly Media Pty Ltd) Australia 100 % 100 % Unruly Media KK Japan 100 % 100 % Unmedia Video Distribution Sdn Bhd Malaysia 100 % 100 % SpearAd GmbH Germany 100 % 100 % Nexxen Inc. (f/k/a Amobee Inc)* USA 100 % 100 % Amobee EMEA Limited UK 100 % 100 % Amobee International Inc USA 100 % 100 % Amobee Ltd Israel 100 % 100 % Amobee Asia Pte Ltd* Singapore 100 % 100 % Amobee ANZ Pty Ltd Australia 100 % 100 % * Under these companies, there are seventeen (17) wholly owned subsidiaries that are inactive and in liquidation process. |
OPERATING SEGMENTS
OPERATING SEGMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
OPERATING SEGMENTS | NOTE 21: OPERATING SEGMENTS The Group has a single reportable segment as a provider of marketing services. Geographical information In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of consumers. Year ended December 31 2023 2022 2021 USD thousands America 311,780 303,106 304,686 APAC 6,537 20,031 20,931 EMEA 13,676 12,113 16,328 Total 331,993 335,250 341,945 |
CONTINGENT LIABILITY
CONTINGENT LIABILITY | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Contingent Liability [Abstract] | |
CONTINGENT LIABILITY | NOTE 22: CONTINGENT LIABILITY On May 18, 2021, the Company filed a complaint against Alphonso, Inc. (“Alphonso”) in the Supreme Court of the State of New York, County of New York (the “Court”), asserting claims for breach of contract, tortious interference with business relations, intentional interference with contractual relations, unjust enrichment, and conversion. The lawsuit arose out of Alphonso’s breach of a Strategic Partnership Agreement and an Advance Payment Obligation and Security Agreement (the “Security Agreement”) with us, and LG Electronics Inc.’s (“LG”) tortious interference with the Company’s contractual relationships and business relations and related misconduct. On February 23, 2024, the Company entered into a settlement and release agreement with Alphonso and LG and the parties have agreed to dismiss the Alphonso Lawsuit. In March 2023, Alphonso remitted USD 11.3 million to the Company, comprising USD 7.25 million related to a secured advance repayment and USD 4.1 million related to additional interest, penalties and fees including reimbursement of certain legal fees. On June 21, 2022, Alphonso filed a complaint against the Company in the United States District Court for the Northern District of California, asserting claims for misappropriation of trade secrets under federal and state law. On October 11, 2023, Alphonso dismissed its claims in the lawsuit with prejudice. On October 25, 2023, the Company filed a bill of costs to recover allowable legal costs from Alphonso. The Company’s request for tax costs is pending with the Court. |
MATERIAL ACCOUNTING POLICIES (P
MATERIAL ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Financial instruments | a. Financial instruments: 1) Non-derivative financial assets The Company’s non-derivative financial assets, which are measured at amortized cost, mainly consist of accounts receivable which are held to collect and deposits. Accounts receivable represent amounts owed by customers resulting from business transactions, and they are recognized at their original invoiced values, adjusted for expected credit losses. Loss rates are based on historical collection experience, while taking into consideration current customer information, collection history, and other relevant data at each reporting period. The Company’s non-derivative financial assets, which are measured at fair value through profit and loss, consist of investment in shares. Net gains and losses are recognized in profit or loss, finance income/expenses. 2) Non-derivative financial liabilities The Company’s non-derivative financial liabilities mainly include trade and other payables, and loan, all measured at amortized cost. 3) Treasury shares: When share capital recognized as equity is repurchased by the Group, the amount of the consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are classified as a deduction in Share Premium. |
Fixed Assets | b. Fixed Assets: Fixed assets are measured at cost less accumulated depreciation. The cost of fixed assets includes expenditure that is directly attributable to the acquisition of the asset. Depreciation is provided on all property and equipment at rates calculated to write each asset down to its residual value (assumed to be nil), using the straight-line method, over its expected useful life as follows: Years Computers and servers 3-5 Office furniture and equipment 3-17 Leasehold improvements The shorter of the lease term and the useful life |
Intangible assets and liabilities | c. Intangible assets and liabilities: 1) Software development: Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and understanding, is recognized in profit or loss when incurred. Development activities involve a plan or design for the production of new or substantially improved products and processes. Development expenditure is capitalized only if development costs can be measured reliably, the product or process is technically and commercially feasible, future economic benefits are probable, and the Group has the intention and sufficient resources to complete development and to use or sell the asset. The expenditure capitalized in respect of development activities includes the cost of direct labor costs that are directly attributable to preparing the asset for its intended use. Other development expenditure is recognized in profit or loss as incurred. The estimated useful lives of developed software are three years. 2) Goodwill: The Group has identified its entire operation as a single cash generating unit (CGU). The Company conducts an annual assessment of goodwill impairment on an annual basis, at year end. According to management assessment as of December 31, 2023, no impairment in respect to goodwill has been recorded. See note 7. 3) Amortization: Internally generated intangible assets, such as software development costs, are not systematically amortized as long as they are not available for use, i.e., they are not yet on site or in working condition for their intended use. Goodwill is not systematically amortized as well but is tested for impairment at least once a year. Amortization is recognized in the statements of operation and other comprehensive income (loss) on a straight-line basis over the estimated useful lives of the intangible assets from the date they are available for use. The estimated useful lives for the current and comparative periods are as follows: Trademark Fully depreciated, See note 7 Software (developed and acquired) 3 years Customer relationships 3-6 years Technology 3-5.25 years 4) Unfavorable contracts In the business combinations of Nexxen Inc., the Company recognizes a liability for contracts when their terms are unfavorable compared to market terms, to represent the off-market element at the acquisition date. As of December 31, 2023, the aggregated liability balance, in the amount of USD 6.7 million, is entirely classified as long-term. |
Share Based Compensation | d. Share Based Compensation: Compensation expense related to stock options, restricted stock units and performance stock units. The Group’s employee stock purchase plan is measured and recognized in the consolidated financial statements based on the fair value of the awards granted. The fair value of each option award is estimated on the grant date using the Black-Scholes option-pricing model. Stock-based compensation expense related to stock options and restricted stock is recognized over the requisite service periods of the awards. Determining the fair value of stock options awards requires judgment. The Company’s use of the Black-Scholes option pricing model requires the input of subjective assumptions. The assumptions used in the Company’s option-pricing model represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. These assumptions and estimates are as follows: Risk-Free Interest Rate. The risk-free interest rate is based on the yields of U.S. Treasury securities with maturities approximating the expected term of the awards. Expected Term. The expected term of an award is calculated based on the vesting date and the expiration date of the award. Volatility. The Company determined the price volatility based on daily price observations over a period equivalent to the expected term of the award. Dividend Yield. The dividend yield assumption is based on the Company’s history and current expectations of dividend payouts. Fair Value of Common Stock. The fair value of common stock is based on the closing price of the Company's common stock on the grant date. |
Employee benefits | e. Employee benefits: 1) Post-employment benefits: The Group’s main post-employment benefit plan is under section 14 to the Severance Pay Law ("Section 14") for the Israeli employees and under section 401K for US employees, which is accounted for as a contribution plan. In addition, for certain employees, the Group has an additional immaterial plan that is accounted for as a defined benefit plan. These plans are usually financed by deposits with insurance companies or with funds managed by a trustee. 2) Short-term benefits: Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided or upon the actual absence of the employee when the benefit is not accumulated (such as maternity leave). A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably. The employee benefits are classified, for measurement purposes, as short-term benefits or as other long-term benefits depending on when the Group expects the benefits to be wholly settled. |
Revenue recognition | f. Revenue recognition: The Group generates revenue from transactions where it provides access to a platform for the purchase and sale of digital advertising inventory. Its customers are both ad buyers, including brands and agencies, and digital publishers. The Group generates revenue through platform fees that are tailored to fit the customer’s specific utilization of its solutions and include: (i) a percentage of spend, (ii) flat fees and (iii) fixed costs per mile (“CPM”). CPM refers to a payment option in which customers pay a price for every 1,000 impressions an advertisement receives. The Company maintains agreements with each publisher and buyer in the form of written service agreements, which set out the terms of the relationship, including payment terms and access to the Group’s platforms. Publishers provide digital advertising inventory to the Group’s platform in the form of advertising requests, or ad request. When the Group receives ad requests from a publisher, it send bid requests to buyers, which enable buyers to bid on sellers’ digital advertising inventory according to a predefined set of parameters (e.g., demographics, intent, location, etc.). Winning bids create advertising, or paid impressions, for the publisher to present to the buyers. The Group generates revenue from its Programmatic and Performance activities. Programmatic revenue is derived from the end-to-end platform of programmatic advertising, which uses software and algorithms to match buyers and sellers of digital advertising in a technology-driven marketplace. Performance revenue is derived from non-core activities, consisting of mobile-based activities that help brands reach their users. The Company concluded that its Programmatic activity (i) does not have manual control over the process, (ii) the Company is not primarily responsible for fulfillment, (iii) the Company has no inventory risk and (iv) the Company obtains only momentary a title to the advertising space offered via the end-to-end platform. As a result, the Group reports its Programmatic business, tech stack, features, business models and activity as an agent and therefore presented revenue from Programmatic on a net basis. For the Performance activity the Company is the primary obligor to provide the services and, as such, revenue is presented on a gross basis. Management is focused on driving growth with the Programmatic activity through the end-to-end platform, while the Performance activity is declining over time. The Group estimates and records reduction to revenue for volume discounts based on expected volume during the incentive term. The Group generally invoices buyers at the end of each month for the full purchase price of ad impressions monetized in that month. Accounts receivables are recorded at the amount of gross billings for the amount it is responsible to collect and accounts payable are recorded at the net amount payable to publishers. Accordingly, both accounts receivable and accounts payable appear large in relation to revenue reported on a net basis. |
Classification of expenses | g. Classification of expenses Cost of revenue Cost of revenues (exclusive of depreciation and amortization) primarily consists of hosting fees and data costs for both Programmatic and Performance activities, as well as media costs for Performance activities that are directly attributable to revenue generated by the Company and generally based on the revenue share arrangements with audience and content partners. See Note 13. Research and development Research and development expenses consist primarily of compensation and related costs for personnel responsible for the research and development of new and existing products and services. Where required, development expenditures are capitalized in accordance with the Company's standard internal capitalized development policy in accordance with IAS 38 (also see Note 3c(1)). All research costs are expensed when incurred. Selling and marketing Selling and marketing expenses consist primarily of compensation and related costs for personnel engaged in customer service, sales, and sales support functions, as well as advertising and promotional expenditures. General and administrative General and administrative expenses consist primarily of compensation and related costs for personnel, and include costs related to the Company’s facilities, finance, human resources, information technology, legal organizations and fees for professional services. Professional services are principally comprised of external legal, and information technology consulting and outsourcing services that are not directly related to other operational expenses. |
Financing income and expenses | h. Financing income and expenses: Generally, foreign currency differences from a monetary item receivable from or payable to a foreign operation, including foreign operations that are subsidiaries, are recognized in profit or loss in the consolidated financial statements. Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to form part of a net investment in a foreign operation and are recognized in other comprehensive income (loss), and are presented within equity as part of the currency translation reserve. Financing income mainly comprises foreign currency gains and interest income. Financing expense primarily includes exchange rate differences, interest and bank fees. Foreign currency gains and losses on financial assets and financial liabilities are reported on a net basis as either financing income or financing expenses depending on whether foreign currency movements are in a net gain or net loss position. |
Taxes on income | i. Taxes on income The Company operates in multiple tax jurisdictions. Offset of deferred tax assets and liabilities Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority. Uncertain tax positions A provision for uncertain tax positions, including additional tax and interest expenses, is recognized when it is more likely than not that the Group will have to use its economic resources to pay the obligation. |
Leases | j. Leases: Leased assets and lease liabilities Contracts that award the Group control over the use of a leased asset for a period of time in exchange for consideration, are accounted for as leases. Upon initial recognition, the Group recognizes a liability at the present value of the balance of future lease payments (these payments do not include certain variable lease payments), and concurrently recognizes a right-of-use asset at the same amount of the lease liability, adjusted for any prepaid or accrued lease payments or provision for impairment, plus initial direct costs incurred in respect of the lease. Since the interest rate implicit in the Group's leases is not readily determinable, the incremental borrowing rate of the lessee is used. Subsequent to initial recognition, the right-of-use asset is accounted for using the cost model and depreciated over the shorter of the lease term or useful life of the asset. Variable lease payments Variable lease payments that depend on an index or a rate, are initially measured using the index or rate existing at the commencement of the lease and are included in the measurement of the lease liability. When the cash flows of future lease payments change as the result of a change in an index or a rate, the balance of the liability is adjusted against the right-of-use asset. Depreciation of right-of-use asset After lease commencement, a right-of-use asset is measured on a cost basis less accumulated depreciation and accumulated impairment losses and is adjusted for re-measurements of the lease liability. Depreciation is calculated on a straight-line basis over the useful life or contractual lease period, whichever earlier, as follows: ☐ Buildings 1-8.5 years ☐ Data centers 1-5.5 years |
New standards, amendments to standards and interpretations not yet adopted | k. Initial application of new standards, amendments to standards and interpretations Amendment to IAS 1, Presentation of Financial Statements: "Disclosure of Accounting Policies. As a result of applying the Amendment, the extent of the accounting policy disclosure provided in the financial statements for 2023 was reduced and adjusted according to the Company’s specific circumstances. l. New standards, amendments to standards and interpretations not yet adopted: Amendment to IAS 1, Presentation of Financial Statements: Classification of Liabilities as Current or Non-Current and subsequent amendment: Non-Current Liabilities with Covenants. The Group is examining the effects of the Amendment on the financial statements with no plans for early adoption. |
MATERIAL ACCOUNTING POLICIES (T
MATERIAL ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Significant Accounting Policies [Abstract] | |
Disclosure of detailed information about fixed assets, estimated useful life | Years Computers and servers 3-5 Office furniture and equipment 3-17 Leasehold improvements The shorter of the lease term and the useful life |
Disclosure of detailed information about intangible assets estimated useful lives for the current and comparative periods | Trademark Fully depreciated, See note 7 Software (developed and acquired) 3 years Customer relationships 3-6 years Technology 3-5.25 years |
Disclosure of detailed information about depreciation of right-of-use asset | ☐ Buildings 1-8.5 years ☐ Data centers 1-5.5 years |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Income Tax [Abstract] | |
Disclosure of composition of income tax benefit | Year ended December 31 2023 2022 2021 USD thousands Current tax expense (income) Current year (2,331 ) 14,378 7,220 Deferred tax expense (income) Creation and reversal of temporary differences 4,834 5,310 (8,168 ) Tax expenses (benefit) 2,503 19,688 (948 ) |
Disclosure of domestic and foreign components of income taxes | Year ended December 31 2023 2022 2021 USD thousands Domestic (5,352 ) 5,766 4,995 US 8,712 11,578 (961 ) International (857 ) 2,344 (4,982 ) Tax expenses (benefit) 2,503 19,688 (948 ) |
Disclosure of effective reconciliation of income taxes by tax rate | Year ended December 31 2023 2022 2021 USD thousands Profit (Loss) before taxes on income (18,984 ) 42,425 72,275 Primary tax rate of the Company 23 % 23 % 23 % Tax calculated according to the Company’s primary tax rate (4,366 ) 9,758 16,623 Additional tax (tax saving) in respect of: Non-deductible expenses net of tax exempt income (*) 3,329 11,642 (3,364 ) Difference between measurement basis of income/expenses for tax purposes and measurement basis of income/expenses for financial reporting purposes - (654 ) - Effect of reduced tax rate on preferred loss (income) 4,963 (4,625 ) (7,226 ) Utilization of tax losses from prior years for which deferred taxes were not created (90 ) (2,539 ) (1,117 ) Effect on deferred taxes at a rate different from the primary tax rate 892 2,697 (3,329 ) Recognition of deferred taxes for tax losses and benefits from previous years for which deferred taxes were not created in the past (4,852 ) (1,104 ) (4,586 ) Recognition in temporary differences for which deferred taxes are not recognized 656 35 - Foreign tax rate differential 1,971 4,478 2,051 Tax (benefit) expenses 2,503 19,688 (948 ) Effective income tax rate (13 )% 46 % (1 )% (*) including non- deductible share-based compensation expenses. |
Disclosure of deferred tax assets and liabilities | Intangible Assets and R&D expenses Employees Compensation Carryforward Losses Accrued Expenses Doubtful Debt Other Total USD thousands Balance of deferred tax asset (liability) as of January 1, 2022 (5,587 ) 12,074 9,835 2,939 3,099 676 23,036 Business combination (11,313 ) 1,502 7,857 1,322 973 2,158 2,499 Changes recognized in profit or Loss 5,019 (2,927 ) (2,486 ) (2,590 ) (1,332 ) (1,249 ) (5,565 ) Effect of change in tax rate - 14 237 - - 4 255 Changes recognized in equity 187 (3,417 ) (24 ) 22 11 (5 ) (3,226 ) Balance of deferred tax asset (liability) as of December 31, 2022 (11,694 ) 7,246 15,419 1,693 2,751 1,584 16,999 Discontinuance of Consolidation 168 (57 ) - (532 ) (99 ) (1 ) (521 ) Changes recognized in profit or Loss (524 ) (3,837 ) 411 (960 ) 643 (597 ) (4,864 ) Effect of change in tax rate - 30 - - - - 30 Changes recognized in equity (79 ) (34 ) 102 6 - - (5 ) Balance of deferred tax asset (liability) as of December 31, 2023 (12,129 ) 3,348 15,932 207 3,295 986 11,639 |
FIXED ASSETS, NET (Tables)
FIXED ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Disclosure of fixed assets, net | Computers and Servers Office furniture and equipment Leasehold improvements Total USD thousands Cost Balance as of January 1, 2022 8,839 445 770 10,054 Exchange rate differences 53 41 20 114 Additions * 8,375 5 5 8,385 Business combinations 22,256 351 647 23,254 Disposals (892 ) (28 ) (336 ) (1,256 ) Balance as of December 31, 2022 38,631 814 1,106 40,551 Exchange rate differences (7 ) (13 ) (23 ) (43 ) Additions * 3,783 63 779 4,625 Disposals (482 ) (114 ) (94 ) (690 ) Balance as of December 31, 2023 41,925 750 1,768 44,443 Accumulated Depreciation Balance as of January 1, 2022 5,698 269 623 6,590 Exchange rate differences 57 41 18 116 Disposals (890 ) (28 ) (336 ) (1,254 ) Additions 4,957 61 207 5,225 Balance as of December 31, 2022 9,822 343 512 10,677 Exchange rate differences (9 ) (8 ) (1 ) (18 ) Disposals (482 ) (111 ) (93 ) (686 ) Additions 12,314 210 545 13,069 Balance as of December 31, 2023 21,645 434 963 23,042 Carrying amounts As of December 31, 2023 20,280 316 805 21,401 As of December 31, 2022 28,809 471 594 29,874 * As of December 31, 2023, USD 2,030 thousand additions have not been paid (2022: USD 1,900 thousand). |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Lease [Abstract] | |
Disclosure of maturity analysis of lease liabilities | December 31 2023 2022 USD thousands Less than one year (0-1) 12,106 14,104 One to five years (1-5) 24,955 15,234 Total 37,061 29,338 Current maturities of lease liability 12,106 14,104 Long-term lease liability 24,955 15,234 |
Disclosure of composition of Right-of-use assets | 3) Right-of-use assets - Composition: Offices Data center Total USD thousands Balance as of January 1, 2022 5,424 2,849 8,273 Business Combinations 6,103 10,633 16,736 Depreciation and amortization on right-of-use assets (4,533 ) (4,693 ) (9,226 ) Additions 1,113 1,783 2,896 Lease modifications (74 ) - (74 ) Disposals (205 ) (52 ) (257 ) Exchange rate differences (75 ) - (75 ) Balance as of December 31, 2022 7,753 10,520 18,273 Discontinuance of consolidation (64 ) - (64 ) Depreciation and amortization on right-of-use assets (4,422 ) (10,579 ) (15,001 ) Net additions 7,871 14,969 22,840 Lease modifications 20 - 20 Disposals (119 ) (22 ) (141 ) Exchange rate differences (12 ) - (12 ) Balance as of December 31, 2023 11,027 14,888 25,915 |
Disclosure of amount recognized in statement of operation and statement of cash flows | 4) Amounts recognized in statement of operation: Year ended December 31 2023 2022 2021 USD thousands Interest expenses on lease liability (1,885 ) (587 ) (570 ) Depreciation and amortization of right-of-use assets (15,001 ) (9,226 ) (6,334 ) Gain (loss) recognized in profit or loss (119 ) (74 ) 7 Total (17,005 ) (9,887 ) (6,897 ) 5) Amounts recognized in the statement of cash flows: Year ended December 31 2023 2022 2021 USD thousands Cash outflow for leases (19,147 ) (12,605 ) (10,579 ) |
Disclosure of movement in the net investment in the lease | Offices Year ended December 31 2023 2022 USD thousands Balance as of January 1, 4,849 5,682 Sublease receipts (1,112 ) (1,306 ) Additions 2,248 310 Business combinations - 163 Balance as of December 31, 5,985 4,849 |
Disclosure of maturity analysis of net investment in finance leases | Year ended December 31 2023 2022 USD thousands Less than one year (0-1) 1,772 1,084 One to five years (1-5) 4,213 3,765 Total net investment in the lease as of December 31, 5,985 4,849 |
Disclosure of amounts recognized in statement of operation | Offices Year ended December 31 2023 2022 2021 USD thousands Gain from finance subleases - - 301 Financing income on the net investment in the lease 221 199 245 Total 221 199 546 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about intangible assets [abstract] | |
Disclosure of reconciliation of changes in intangible assets and goodwill | Software Trademarks Customer relationships Technology Goodwill Total USD thousands Cost Balance as of January 1, 2022 24,687 36,367 50,108 53,192 156,712 321,066 Exchange rate differences (50 ) (1,262 ) (1,455 ) (548 ) (3,216 ) (6,531 ) Additions 8,750 - - - - 8,750 Disposals (1,199 ) (19,570 ) (2,393 ) (4,851 ) - (28,013 ) Business combinations - 7,654 29,169 85,684 92,244 214,751 Balance as of December 31, 2022 32,188 23,189 75,429 133,477 245,740 510,023 Exchange rate differences 25 485 455 272 874 2,111 Additions 15,187 - - - - 15,187 Disposals (12 ) (23,674 ) (1,845 ) - (262 ) (25,793 ) Balance as of December 31, 2023 47,388 - 74,039 133,749 246,352 501,528 Amortization Balance as of January 1, 2022 14,876 29,786 28,223 39,961 - 112,846 Exchange rate differences 2 (585 ) (914 ) (198 ) - (1,695 ) Additions 6,189 2,514 9,289 10,257 - 28,249 Disposals (659 ) (19,570 ) (2,393 ) (4,851 ) - (27,473 ) Balance as of December 31, 2022 20,408 12,145 34,205 45,169 - 111,927 Exchange rate differences 15 355 353 157 - 880 Additions 7,172 11,174 12,407 21,499 - 52,252 Disposals (12 ) (23,674 ) (1,845 ) - - (25,531 ) Balance as of December 31, 2023 27,583 - 45,120 66,825 - 139,528 Carrying amounts As of December 31, 2023 19,805 - 28,919 66,924 246,352 362,000 As of December 31, 2022 11,780 11,044 41,224 88,308 245,740 398,096 |
TRADE AND OTHER RECEIVABLES (Ta
TRADE AND OTHER RECEIVABLES (Table) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other current receivables [abstract] | |
Disclosure of trade and other receivables | December 31 2023 2022 USD thousands Trade receivables: Trade receivables 219,396 229,975 Allowance for expected credit losses (17,423 ) (10,138 ) Trade receivables, net 201,973 219,837 Other receivables: Prepaid expenses 4,988 14,425 Loan to a third party 104 - Institutions 1,309 1,281 Pledged deposits 1,569 3,036 Acquisition consideration adjustment - 4,673 Other 323 - 8,293 23,415 |
TRADE AND OTHER PAYABLES (Table
TRADE AND OTHER PAYABLES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Trade and other payables [abstract] | |
Disclosure of trade and other payable | December 31 2023 2022 USD thousands Trade payables 183,296 212,690 Other payables: Contract liabilities 8,366 6,540 Wages, salaries and related expenses 13,319 24,539 Provision for vacation 1,922 1,869 Institutions 1,603 1,659 Interest to pay 1,757 1,504 Pledged deposits 284 362 Others 1,847 7,882 29,098 44,355 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Cash and cash equivalents [abstract] | |
Disclosure of cash and cash equivalents | December 31 2023 2022 USD thousands Cash 105,997 173,568 Bank deposits 128,311 43,932 Cash and cash equivalents 234,308 217,500 |
REVENUES (Tables)
REVENUES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Revenue [Abstract] | |
Disclosure of revenue | Year ended December 31 2023 2022 2021 USD thousands Programmatic 299,005 274,355 266,616 Performance 32,988 60,895 75,329 331,993 335,250 341,945 |
COST OF REVENUE (Tables)
COST OF REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure Of Cost Of Revenue [Abstract] | |
Disclosure of cost of revenue | Year ended December 31 2023 2022 2021 USD thousands Programmatic 44,385 35,110 31,572 Performance 17,885 25,635 40,079 Cost of Revenue 62,270 60,745 71,651 |
GENERAL AND ADMINISTRATIVE EX_2
GENERAL AND ADMINISTRATIVE EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Selling, general and administrative expense [abstract] | |
Disclosure of general and administrative expenses | Year ended December 31 2023 2022 2021 USD thousands Wages, salaries and related expenses 21,835 18,933 17,755 Share base payments 12,121 31,878 32,250 Rent and office maintenance 2,432 319 549 Professional expenses 7,686 12,233 7,136 Doubtful debts 4,337 (3,167 ) 4,958 Acquisition costs 171 6,012 253 Other expenses 2,469 1,797 598 51,051 68,005 63,499 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of classes of share capital [abstract] | |
Disclosure of Issued and paid-in share capital | Ordinary Shares 2023 2022 Number of shares Balance as of January 1 144,477,962 154,501,629 Own shares held by the Group (2,729,597 ) (16,906,795 ) Share based compensation 4,413,644 6,883,128 Issued and paid-in share capital as of December 31 146,162,009 144,477,962 Authorized share capital 500,000,000 500,000,000 |
EARNINGS (LOSS) PER SHARE (Tabl
EARNINGS (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings per share [abstract] | |
Disclosure of earnings per share | Profit (loss) for the year: Year ended December 31 2023 2022 2021 USD thousands Profit (loss) for the year (21,487 ) 22,737 73,223 Weighted average number of ordinary shares: Year ended December 31 2023 2022 2021 Shares of NIS 0.01 par value Weighted average number of ordinary shares used to calculate basic earnings (loss) per share as at December 31 143,589,188 149,937,339 144,493,989 Basic earnings (loss) per share (in USD) (0.15 ) 0.15 0.51 Weighted average number of ordinary shares (diluted): Year ended December 31 2023 2022 2021 Shares of NIS 0.01 par value Weighted average number of ordinary shares used to calculate basic earnings per share 143,589,188 149,937,339 144,493,989 Effect of share options on issue - 3,120,304 8,212,903 Weighted average number of ordinary shares used to calculate diluted earnings per share 143,589,188 153,057,643 152,706,892 Diluted earnings per share (in USD) (0.15 ) 0.15 0.48 |
SHARE-BASED COMPENSATION ARRA_2
SHARE-BASED COMPENSATION ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Disclosure of detailed information about number and weighted average exercise prices of share options | Number of options Weighted average exercise price 2023 2022 2023 2022 (Thousands) (USD) Outstanding of 1 January 4,772 6,026 7.31 6.54 Forfeited during the year (721 ) (828 ) 6.33 7.61 Exercised during the year (346 ) (1,046 ) 0.67 1.96 Granted during the year - 620 - 7.22 Outstanding of December 31 3,705 4,772 7.91 7.31 Exercisable of December 31 2,086 1,814 |
Disclosure of expense recognized in the statement of operation and other comprehensive income | Year ended December 31 2023 2022 2021 USD thousands Selling and marketing 3,740 10,594 7,094 Research and development 3,308 8,034 3,474 General and administrative 12,121 31,877 32,250 19,169 50,505 42,818 |
Restricted Share Units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Disclosure of detailed information about number of restricted share units and performance stock units | Number of RSU’s Weighted-Average Grant Date Fair Value 2023 2022 2023 2022 (Thousands) Outstanding at 1 January 5,288 8,146 8.277 8.606 Forfeited during the year (254 ) (261 ) 6.275 9.948 Exercised during the year (3,295 ) (3,374 ) 8.208 8.091 Granted during the year 353 777 2.160 4.596 Outstanding at December 31 2,092 5,288 7.601 8.277 |
Performance Stock Units | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Disclosure of detailed information about number of restricted share units and performance stock units | Number of PSU’s Weighted-Average Grant Date Fair Value 2023 2022 2023 2022 (Thousands) Outstanding at January 1 1,992 4,486 8.937 6.796 Forfeited during the year (254 ) (80 ) 6.328 9.952 Exercised during the year (930 ) (2,582 ) 9.320 4.891 Granted during the year 144 168 2.160 4.453 Outstanding at December 31 952 1,992 8.238 8.937 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Disclosure of derivative financial instruments | December 31 2023 2022 USD thousands Derivatives presented under current assets Forward exchange contracts used for hedging 123 - Derivatives presented under current liability Forward exchange contracts used for hedging - (209 ) Total 123 (209 ) |
Disclosure of maximum exposure to credit risk | December 31 2023 2022 USD thousands Cash and cash equivalents 234,308 217,500 Trade receivables, net (a) 201,973 219,837 Other receivables 1,996 7,709 Long term deposit 525 406 438,802 445,452 |
Disclosure of trade receivables | Allowance for Doubtful debts 2023 2022 USD thousands Balance at January 1 10,138 13,870 Allowance for doubtful debts expenses (income) 7,622 (3,167 ) Discontinuance of consolidation (275 ) - Write-off (22 ) (542 ) Exchange rate difference (40 ) (23 ) Balance at December 31 17,423 10,138 |
Disclosure of sensitivity analysis | 2023 2022 GBP/USD +10% -10% +10% -10% USD thousands Profit / (Loss) (1,832 ) 1,832 (2,893 ) 2,893 Increase / (Decrease) in Shareholders’ Equity (9 ) 9 (94 ) 94 2023 2022 NIS/USD +10% -10% +10% -10% USD thousands Profit / (Loss) 353 (353 ) (139 ) 139 Increase / (Decrease) in Shareholders’ Equity 384 (384 ) (107 ) 107 2023 2022 SGD/USD +10% -10% +10% -10% USD thousands Profit / (Loss) (2,348 ) 2,348 (2,615 ) 2,615 Increase / (Decrease) in Shareholders’ Equity (6 ) 6 (320 ) 320 |
Disclosure of financial asset measured at fair value through profit or loss under level 3 | December 31, 2023 December 31, 2022 Level 3 Level 3 USD thousands USD thousands Financial assets measured at fair value through profit or loss: Investment in shares 25,000 25,000 |
RELATED PARTIES (Tables)
RELATED PARTIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Disclosure of detailed information about key management personnel | Year ended December 31 2023 2022 2021 USD thousands Share-based compensation 11,527 30,914 31,283 Other compensation and benefits 3,988 4,433 6,752 Total 15,515 35,347 38,035 |
SUBSIDIARIES (Tables)
SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of subsidiaries [abstract] | |
Disclosure of list of subsidiary | Principal The Group’s ownership interest location of the in the subsidiary for the year ended Company’s December 31 Name of company activity 2023 2022 Taptica Inc USA 100 % 100 % Tremor Video Inc USA 100 % 100 % Adinnovation Inc Japan - 100 % Taptica UK UK 100 % 100 % YuMe Inc* USA 100 % 100 % Perk.com Canada Inc Canada 100 % 100 % R1Demand LLC* USA 100 % 100 % Nexxen Group LLC (f/k/a Unruly Group LLC) USA 100 % 100 % Nexxen Group US Holdings Inc. (f/k/a Unruly Group US Holding Inc)* USA 100 % 100 % Nexxen Holdings Ltd (f/k/a Unruly Holdings Limited)* UK 100 % 100 % Nexxen Group Ltd (f/k/a Unruly Group Limited)* UK 100 % 100 % Unruly Media GmbH Germany 100 % 100 % Unruly Media Pte Ltd* Singapore 100 % 100 % Nexxen Pty Ltd (f/k/a Unruly Media Pty Ltd) Australia 100 % 100 % Unruly Media KK Japan 100 % 100 % Unmedia Video Distribution Sdn Bhd Malaysia 100 % 100 % SpearAd GmbH Germany 100 % 100 % Nexxen Inc. (f/k/a Amobee Inc)* USA 100 % 100 % Amobee EMEA Limited UK 100 % 100 % Amobee International Inc USA 100 % 100 % Amobee Ltd Israel 100 % 100 % Amobee Asia Pte Ltd* Singapore 100 % 100 % Amobee ANZ Pty Ltd Australia 100 % 100 % * Under these companies, there are seventeen (17) wholly owned subsidiaries that are inactive and in liquidation process. |
OPERATING SEGMENTS (Tables)
OPERATING SEGMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Disclosure of operating segments [abstract] | |
Disclosure of basis of geographical segments | Year ended December 31 2023 2022 2021 USD thousands America 311,780 303,106 304,686 APAC 6,537 20,031 20,931 EMEA 13,676 12,113 16,328 Total 331,993 335,250 341,945 |
BASIS OF PREPARATION (Detail Te
BASIS OF PREPARATION (Detail Textuals) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Disclosure Of Basis Of Preparation [Abstract] | |
Change in classification amount | $ 1,350 |
MATERIAL ACCOUNTING POLICIES (D
MATERIAL ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Computers and Servers | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Expected useful life | 3 years |
Computers and Servers | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Expected useful life | 5 years |
Office furniture and equipment | Minimum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Expected useful life | 3 years |
Office furniture and equipment | Maximum | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Expected useful life | 17 years |
Leasehold improvements | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Expected useful life | The shorter of the lease term and the useful life |
MATERIAL ACCOUNTING POLICIES _2
MATERIAL ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2023 | |
Trademarks | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | Fully depreciated |
Software (developed and acquired) | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | 3 years |
Customer relationships | Minimum | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | 3 years |
Customer relationships | Maximum | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | 6 years |
Technology | Minimum | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | 3 years |
Technology | Maximum | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |
Estimated useful life of intangible assets | 5 years 3 months |
MATERIAL ACCOUNTING POLICIES _3
MATERIAL ACCOUNTING POLICIES (Details 2) | 12 Months Ended |
Dec. 31, 2023 | |
Buildings | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation of useful life of rights-of-use asset | 1 year |
Buildings | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation of useful life of rights-of-use asset | 8 years 6 months |
Data centers | Minimum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation of useful life of rights-of-use asset | 1 year |
Data centers | Maximum | |
Disclosure of quantitative information about right-of-use assets [line items] | |
Depreciation of useful life of rights-of-use asset | 5 years 6 months |
MATERIAL ACCOUNTING POLICIES _4
MATERIAL ACCOUNTING POLICIES (Detail Textuals) $ in Millions | Dec. 31, 2023 USD ($) |
Disclosure Of Significant Accounting Policies [Abstract] | |
Unfavorable contracts aggregated liability balance | $ 6.7 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Income Tax [Abstract] | |||
Current tax expense (income), Current year | $ (2,331) | $ 14,378 | $ 7,220 |
Deferred tax expense (income), Creation and reversal of temporary differences | 4,834 | 5,310 | (8,168) |
Tax expenses (benefit) | $ 2,503 | $ 19,688 | $ (948) |
INCOME TAX (Details 1)
INCOME TAX (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Domestic And Foreign Components Of Income Taxes [Line Items] | |||
Tax expenses (benefit) | $ 2,503 | $ 19,688 | $ (948) |
Domestic | |||
Disclosure Of Domestic And Foreign Components Of Income Taxes [Line Items] | |||
Tax expenses (benefit) | (5,352) | 5,766 | 4,995 |
US | |||
Disclosure Of Domestic And Foreign Components Of Income Taxes [Line Items] | |||
Tax expenses (benefit) | 8,712 | 11,578 | (961) |
International | |||
Disclosure Of Domestic And Foreign Components Of Income Taxes [Line Items] | |||
Tax expenses (benefit) | $ (857) | $ 2,344 | $ (4,982) |
INCOME TAX (Details 2)
INCOME TAX (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disclosure Of Income Tax [Line Items] | ||||
Profit (Loss) before taxes on income | $ (18,984) | $ 42,425 | $ 72,275 | |
Tax calculated according to the Company’s primary tax rate | (4,366) | 9,758 | 16,623 | |
Additional tax (tax saving) in respect of: | ||||
Non-deductible expenses net of tax exempt income | [1] | 3,329 | 11,642 | (3,364) |
Difference between measurement basis of income/expenses for tax purposes and measurement basis of income/expenses for financial reporting purposes | 0 | (654) | 0 | |
Effect of reduced tax rate on preferred loss (income) | 4,963 | (4,625) | (7,226) | |
Utilization of tax losses from prior years for which deferred taxes were not created | (90) | (2,539) | (1,117) | |
Effect on deferred taxes at a rate different from the primary tax rate | 892 | 2,697 | (3,329) | |
Recognition of deferred taxes for tax losses and benefits from previous years for which deferred taxes were not created in the past | (4,852) | (1,104) | (4,586) | |
Recognition in temporary differences for which deferred taxes are not recognized | 656 | 35 | 0 | |
Foreign tax rate differential | 1,971 | 4,478 | 2,051 | |
Tax expenses (benefit) | $ 2,503 | $ 19,688 | $ (948) | |
Effective income tax rate | 13% | (46.00%) | (1.00%) | |
Israel | ||||
Disclosure Of Income Tax [Line Items] | ||||
Primary tax rate of the Company | 23% | 23% | 23% | |
Additional tax (tax saving) in respect of: | ||||
Tax expenses (benefit) | $ (5,352) | $ 5,766 | $ 4,995 | |
[1]including non- deductible share-based compensation expenses. |
INCOME TAX (Details 3)
INCOME TAX (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | $ 16,999 | $ 23,036 |
Business combinations | 2,499 | |
Discontinuance of consolidation | (521) | |
Changes recognized in profit or Loss | (4,864) | (5,565) |
Effect of change in tax rate | 30 | 255 |
Changes recognized in equity | (5) | (3,226) |
Balance of deferred tax asset (liability) | 11,639 | 16,999 |
Intangible Assets and R&D expenses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | (11,694) | (5,587) |
Business combinations | (11,313) | |
Discontinuance of consolidation | 168 | |
Changes recognized in profit or Loss | (524) | 5,019 |
Effect of change in tax rate | 0 | 0 |
Changes recognized in equity | (79) | 187 |
Balance of deferred tax asset (liability) | (12,129) | (11,694) |
Employees Compensation | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | 7,246 | 12,074 |
Business combinations | 1,502 | |
Discontinuance of consolidation | (57) | |
Changes recognized in profit or Loss | (3,837) | (2,927) |
Effect of change in tax rate | 30 | 14 |
Changes recognized in equity | (34) | (3,417) |
Balance of deferred tax asset (liability) | 3,348 | 7,246 |
Carryforward Losses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | 15,419 | 9,835 |
Business combinations | 7,857 | |
Discontinuance of consolidation | 0 | |
Changes recognized in profit or Loss | 411 | (2,486) |
Effect of change in tax rate | 0 | 237 |
Changes recognized in equity | 102 | (24) |
Balance of deferred tax asset (liability) | 15,932 | 15,419 |
Accrued Expenses | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | 1,693 | 2,939 |
Business combinations | 1,322 | |
Discontinuance of consolidation | (532) | |
Changes recognized in profit or Loss | (960) | (2,590) |
Effect of change in tax rate | 0 | 0 |
Changes recognized in equity | 6 | 22 |
Balance of deferred tax asset (liability) | 207 | 1,693 |
Doubtful Debt | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | 2,751 | 3,099 |
Business combinations | 973 | |
Discontinuance of consolidation | (99) | |
Changes recognized in profit or Loss | 643 | (1,332) |
Effect of change in tax rate | 0 | 0 |
Changes recognized in equity | 0 | 11 |
Balance of deferred tax asset (liability) | 3,295 | 2,751 |
Other | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Balance of deferred tax asset (liability) | 1,584 | 676 |
Business combinations | 2,158 | |
Discontinuance of consolidation | (1) | |
Changes recognized in profit or Loss | (597) | (1,249) |
Effect of change in tax rate | 0 | 4 |
Changes recognized in equity | 0 | (5) |
Balance of deferred tax asset (liability) | $ 986 | $ 1,584 |
INCOME TAX (Detail Textuals)
INCOME TAX (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2017 | |
Disclosure Of Income Tax [Line Items] | ||||
Reduced corporate tax rate as per investment law | 12% | |||
Tax rate for enterprise located in development area A | 7.50% | |||
Net operating loss carryforwards | $ 307,200 | $ 315,000 | ||
Capital loss to carry forward | $ 27,700 | 0 | ||
Capital Loss Carryforwards Expiration Period | 5 years | |||
Tax rate of taxable income as per Tax Cuts And Jobs Act | 80% | |||
Gross Unrecognized Tax Benefits | $ 6,383 | $ 7,188 | ||
Domestic | ||||
Disclosure Of Income Tax [Line Items] | ||||
Primary tax rate of the Company | 23% | 23% | 23% | |
Net operating loss carryforwards | $ 20,400 | $ 0 | ||
Capital loss to carry forward | 3,000 | 100 | ||
US | ||||
Disclosure Of Income Tax [Line Items] | ||||
Net operating loss carryforwards | 100,800 | |||
International | ||||
Disclosure Of Income Tax [Line Items] | ||||
Net operating loss carryforwards | 19,200 | 22,300 | ||
Capital loss to carry forward | 900 | 0 | ||
United states federal Net operating loss | ||||
Disclosure Of Income Tax [Line Items] | ||||
Net operating loss carryforwards | 56,700 | 65,700 | ||
United States Federal Net Operating Loss One [Member] | ||||
Disclosure Of Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 315,000 | $ 500 | ||
Net operating loss carryforwards expiration period | 52 years |
FIXED ASSETS, NET (Details)
FIXED ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | $ 29,874 | ||
Balance | 21,401 | $ 29,874 | |
Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 40,551 | 10,054 | |
Exchange rate differences | (43) | 114 | |
Additions | [1] | 4,625 | 8,385 |
Business combinations | 23,254 | ||
Disposals | (690) | (1,256) | |
Balance | 44,443 | 40,551 | |
Depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | (10,677) | (6,590) | |
Exchange rate differences | (18) | (116) | |
Additions | (13,069) | (5,225) | |
Disposals | 686 | 1,254 | |
Balance | (23,042) | (10,677) | |
Computers and Servers | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 20,280 | ||
Balance | 28,809 | 20,280 | |
Computers and Servers | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 38,631 | 8,839 | |
Exchange rate differences | (7) | 53 | |
Additions | [1] | 3,783 | 8,375 |
Business combinations | 22,256 | ||
Disposals | (482) | (892) | |
Balance | 41,925 | 38,631 | |
Computers and Servers | Depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | (9,822) | (5,698) | |
Exchange rate differences | (9) | 57 | |
Additions | (12,314) | (4,957) | |
Disposals | 482 | 890 | |
Balance | (21,645) | (9,822) | |
Office furniture and equipment | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 316 | ||
Balance | 471 | 316 | |
Office furniture and equipment | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 814 | 445 | |
Exchange rate differences | (13) | 41 | |
Additions | [1] | 63 | 5 |
Business combinations | 351 | ||
Disposals | (114) | (28) | |
Balance | 750 | 814 | |
Office furniture and equipment | Depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | (343) | (269) | |
Exchange rate differences | (8) | (41) | |
Additions | (210) | (61) | |
Disposals | 111 | 28 | |
Balance | (434) | (343) | |
Leasehold improvements | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 805 | ||
Balance | 594 | 805 | |
Leasehold improvements | Cost | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | 1,106 | 770 | |
Exchange rate differences | (23) | 20 | |
Additions | [1] | 779 | 5 |
Business combinations | 647 | ||
Disposals | (94) | (336) | |
Balance | 1,768 | 1,106 | |
Leasehold improvements | Depreciation | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Balance | (512) | (623) | |
Exchange rate differences | (1) | 18 | |
Additions | (545) | (207) | |
Disposals | 93 | 336 | |
Balance | $ (963) | $ (512) | |
[1]As of December 31, 2022, USD 1,900 additions have not been paid (2021: nil). |
FIXED ASSETS, NET (Detail Textu
FIXED ASSETS, NET (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | ||
Purchase of fixed assets that has not yet paid | $ 2,030 | $ 1,900 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total | $ 37,061 | $ 29,338 |
Current maturities of lease liabilities | 12,106 | 14,104 |
Long-term lease liability | 24,955 | 15,234 |
Less than one year (0-1) | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total | 12,106 | 14,104 |
One to five years (1-5) | ||
Disclosure of maturity analysis of operating lease payments [line items] | ||
Total | $ 24,955 | $ 15,234 |
LEASES (Details 1)
LEASES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance | $ 18,273 | $ 8,273 |
Discontinuance of consolidation | 16,736 | |
Sale of a subsidiary | (64) | |
Depreciation and amortization on right-of-use assets | (15,001) | (9,226) |
Net additions | 22,840 | 2,896 |
Lease modifications | 20 | (74) |
Disposals | (141) | (257) |
Exchange rate differences | (12) | (75) |
Balance | 25,915 | 18,273 |
Offices | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance | 7,753 | 5,424 |
Discontinuance of consolidation | 6,103 | |
Sale of a subsidiary | (64) | |
Depreciation and amortization on right-of-use assets | (4,422) | (4,533) |
Net additions | 7,871 | 1,113 |
Lease modifications | 20 | (74) |
Disposals | (119) | (205) |
Exchange rate differences | (12) | (75) |
Balance | 11,027 | 7,753 |
Data center | ||
Disclosure of quantitative information about right-of-use assets [line items] | ||
Balance | 10,520 | 2,849 |
Discontinuance of consolidation | 10,633 | |
Sale of a subsidiary | 0 | |
Depreciation and amortization on right-of-use assets | (10,579) | (4,693) |
Net additions | 14,969 | 1,783 |
Lease modifications | 0 | 0 |
Disposals | (22) | (52) |
Exchange rate differences | 0 | 0 |
Balance | $ 14,888 | $ 10,520 |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Lease [Abstract] | |||
Interest expenses on lease liability | $ (1,885) | $ (587) | $ (570) |
Depreciation and amortization of right-of-use assets | (15,001) | (9,226) | (6,334) |
Gain (loss) recognized in profit or loss | (119) | (74) | 7 |
Total | $ (17,005) | $ (9,887) | $ (6,897) |
LEASES (Details 3)
LEASES (Details 3) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Lease [Abstract] | |||
Cash outflow for leases | $ (19,147) | $ (12,605) | $ (10,579) |
LEASES (Details 4)
LEASES (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Lease [Abstract] | ||
Balance as of January 1, | $ 4,849 | $ 5,682 |
Sublease receipts | (1,112) | (1,306) |
Additions | 2,248 | 310 |
Business combinations | 0 | 163 |
Balance as of December 31, | $ 5,985 | $ 4,849 |
LEASES (Details 5)
LEASES (Details 5) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total net investment in the lease | $ 5,985 | $ 4,849 |
Less than one year (0-1) | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total net investment in the lease | 1,772 | 1,084 |
One to five years (1-5) | ||
Disclosure of maturity analysis of finance lease payments receivable [line items] | ||
Total net investment in the lease | $ 4,213 | $ 3,765 |
LEASES (Details 6)
LEASES (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Lease [Abstract] | |||
Gain from finance subleases | $ 0 | $ 0 | $ 301 |
Financing income on the net investment in the lease | 221 | 199 | 245 |
Total | $ 221 | $ 199 | $ 546 |
LEASES (Detail Textuals)
LEASES (Detail Textuals) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Of Quantitative Information About Lease [Line Items] | |||
Lease liability | $ 37,061 | $ 29,338 | |
Right-of-use assets | 25,915 | 18,273 | $ 8,273 |
Offices | |||
Disclosure Of Quantitative Information About Lease [Line Items] | |||
Lease liability | 21,381 | 18,513 | |
Right-of-use assets | 11,027 | 7,753 | 5,424 |
Data center | |||
Disclosure Of Quantitative Information About Lease [Line Items] | |||
Lease liability | 15,680 | 10,825 | |
Right-of-use assets | $ 14,888 | $ 10,520 | $ 2,849 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | $ 398,096 | |
Balance, end of year | 362,000 | $ 398,096 |
Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 510,023 | 321,066 |
Exchange rate differences | 2,111 | (6,531) |
Additions | 15,187 | 8,750 |
Disposals | (25,793) | (28,013) |
Business combinations | 214,751 | |
Balance, end of year | 501,528 | 510,023 |
Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | (111,927) | (112,846) |
Exchange rate differences | 880 | (1,695) |
Additions | 52,252 | 28,249 |
Disposals | (25,531) | (27,473) |
Balance, end of year | (139,528) | (111,927) |
Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 11,780 | |
Balance, end of year | 19,805 | 11,780 |
Software | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 32,188 | 24,687 |
Exchange rate differences | 25 | (50) |
Additions | 15,187 | 8,750 |
Disposals | (12) | (1,199) |
Business combinations | 0 | |
Balance, end of year | 47,388 | 32,188 |
Software | Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | (20,408) | (14,876) |
Exchange rate differences | 15 | 2 |
Additions | 7,172 | 6,189 |
Disposals | (12) | (659) |
Balance, end of year | (27,583) | (20,408) |
Trademarks | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 11,044 | |
Balance, end of year | 0 | 11,044 |
Trademarks | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 23,189 | 36,367 |
Exchange rate differences | 485 | (1,262) |
Additions | 0 | 0 |
Disposals | (23,674) | (19,570) |
Business combinations | 7,654 | |
Balance, end of year | 0 | 23,189 |
Trademarks | Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | (12,145) | (29,786) |
Exchange rate differences | 355 | (585) |
Additions | 11,174 | 2,514 |
Disposals | (23,674) | (19,570) |
Balance, end of year | 0 | (12,145) |
Customer relationships | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 41,224 | |
Balance, end of year | 28,919 | 41,224 |
Customer relationships | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 75,429 | 50,108 |
Exchange rate differences | 455 | (1,455) |
Additions | 0 | 0 |
Disposals | (1,845) | (2,393) |
Business combinations | 29,169 | |
Balance, end of year | 74,039 | 75,429 |
Customer relationships | Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | (34,205) | (28,223) |
Exchange rate differences | 353 | (914) |
Additions | 12,407 | 9,289 |
Disposals | (1,845) | (2,393) |
Balance, end of year | (45,120) | (34,205) |
Technology | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 88,308 | |
Balance, end of year | 66,924 | 88,308 |
Technology | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 133,477 | 53,192 |
Exchange rate differences | 272 | (548) |
Additions | 0 | 0 |
Disposals | 0 | (4,851) |
Business combinations | 85,684 | |
Balance, end of year | 133,749 | 133,477 |
Technology | Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | (45,169) | (39,961) |
Exchange rate differences | 157 | (198) |
Additions | 21,499 | 10,257 |
Disposals | 0 | (4,851) |
Balance, end of year | (66,825) | (45,169) |
Goodwill | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 245,740 | |
Balance, end of year | 246,352 | 245,740 |
Goodwill | Cost | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 245,740 | 156,712 |
Exchange rate differences | 874 | (3,216) |
Additions | 0 | 0 |
Disposals | (262) | 0 |
Business combinations | 92,244 | |
Balance, end of year | 246,352 | 245,740 |
Goodwill | Amortization | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Balance, beginning of year | 0 | 0 |
Exchange rate differences | 0 | |
Additions | 0 | 0 |
Disposals | 0 | 0 |
Balance, end of year | $ 0 | $ 0 |
INTANGIBLE ASSETS, NET (Detail
INTANGIBLE ASSETS, NET (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Percentage of post tax discount rate | 14% | 15% |
Percentage of terminal value growth rates. | 3% | 3% |
Term of initial annual growth rate of impairment testing | 5 years | |
Minimum | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Percentage of growth rate in earnings before interest taxes depreciation and amortization | 26% | 21% |
Maximum | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Percentage of growth rate in earnings before interest taxes depreciation and amortization | 42% | 33% |
Software | ||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | ||
Development costs capitalized | $ 14,222 | $ 8,743 |
TRADE AND OTHER RECEIVABLES (De
TRADE AND OTHER RECEIVABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Trade receivables: | |||
Trade receivables | $ 219,396 | $ 229,975 | |
Allowance for expected credit losses | (17,423) | (10,138) | $ (13,870) |
Trade receivables, net | 201,973 | 219,837 | |
Other receivables: | |||
Prepaid expenses | 4,988 | 14,425 | |
Loan to a third party | 104 | 0 | |
Institutions | 1,309 | 1,281 | |
Pledged deposits | 1,569 | 3,036 | |
Acquisition consideration adjustment | 0 | 4,673 | |
Other | 323 | 0 | |
Total other receivables | $ 8,293 | $ 23,415 |
TRADE AND OTHER PAYABLES (Detai
TRADE AND OTHER PAYABLES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Trade and other payables [abstract] | ||
Trade payables | $ 183,296 | $ 212,690 |
Other payables: | ||
Contract liabilities | 8,366 | 6,540 |
Wages, salaries and related expenses | 13,319 | 24,539 |
Provision for vacation | 1,922 | 1,869 |
Institutions | 1,603 | 1,659 |
Interest to pay | 1,757 | 1,504 |
Pledged deposits | 284 | 362 |
Others | 1,847 | 7,882 |
Total other payables | $ 29,098 | $ 44,355 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and cash equivalents [abstract] | ||||
Cash | $ 105,997 | $ 173,568 | ||
Bank deposits | 128,311 | 43,932 | ||
Cash and cash equivalents | $ 234,308 | $ 217,500 | $ 367,717 | $ 97,463 |
CASH AND CASH EQUIVALENTS (De_2
CASH AND CASH EQUIVALENTS (Detail Textuals) | Dec. 31, 2023 |
Minimum | |
Cash And Cash Equivalents [Line Items] | |
Proportion of majority of cash and cash equivalents accumulates interest | 3% |
Maximum | |
Cash And Cash Equivalents [Line Items] | |
Proportion of majority of cash and cash equivalents accumulates interest | 5.50% |
LONG-TERM DEBT (Detail Textuals
LONG-TERM DEBT (Detail Textuals) - Amobee Group Pte Ltd - US Holding Inc. - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2023 | |
Other Long Term Liabilities [Line Items] | ||
Secured term loan | $ 90,000 | |
Revolving credit facility | 90,000 | |
Proceeds of revolving credit facility | $ 10,000 | |
Interest expenses | $ 6,854 | |
Interest paid | $ 6,601 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 331,993 | $ 335,250 | $ 341,945 |
Programmatic | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | 299,005 | 274,355 | 266,616 |
Performance | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Revenue | $ 32,988 | $ 60,895 | $ 75,329 |
REVENUE (Detail Textuals)
REVENUE (Detail Textuals) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Revenue [Abstract] | |||
Percentage of revenue | 0% | 10.70% | 13.60% |
COST OF REVENUE (Details)
COST OF REVENUE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure Of Cost Of Revenue [Line Items] | |||
Cost of Revenue | $ 62,270 | $ 60,745 | $ 71,651 |
Programmatic | |||
Disclosure Of Cost Of Revenue [Line Items] | |||
Cost of Revenue | 44,385 | 35,110 | 31,572 |
Performance | |||
Disclosure Of Cost Of Revenue [Line Items] | |||
Cost of Revenue | $ 17,885 | $ 25,635 | $ 40,079 |
GENERAL AND ADMINISTRATIVE EX_3
GENERAL AND ADMINISTRATIVE EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Selling, general and administrative expense [abstract] | |||
Wages, salaries and related expenses | $ 21,835 | $ 18,933 | $ 17,755 |
Share base payments | 12,121 | 31,878 | 32,250 |
Rent and office maintenance | 2,432 | 319 | 549 |
Professional expenses | 7,686 | 12,233 | 7,136 |
Doubtful debts | 4,337 | (3,167) | 4,958 |
Acquisition costs | 171 | 6,012 | 253 |
Other expenses | 2,469 | 1,797 | 598 |
Total general and administrative expense | $ 51,051 | $ 68,005 | $ 63,499 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of classes of share capital [abstract] | ||
Balance as of January 1 | 144,477,962 | 154,501,629 |
Own shares held by the Group | (2,729,597) | (16,906,795) |
Share based compensation | 4,413,644 | 6,883,128 |
Issued and paid-in share capital as of December 31 | 146,162,009 | 144,477,962 |
Authorized share capital | 500,000,000 | 500,000,000 |
SHAREHOLDERS' EQUITY (Detail Te
SHAREHOLDERS' EQUITY (Detail Textuals) - USD ($) | 12 Months Ended | |||
Dec. 18, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Jul. 31, 2023 | |
Disclosure of classes of share capital [line items] | ||||
Maximum amount for share buyback program | $ 20,000,000 | $ 95,000,000 | ||
Number of ordinary shares repurchase | 221,506 | 2,505,851 | ||
Amount of ordinary shares repurchase | $ 600 | $ 8,700,000 | ||
Restricted Share Units | ||||
Disclosure of classes of share capital [line items] | ||||
Number of ordinary shares repurchase | 2,240 | |||
Nexxen International Ltd. and its subsidiaries | ||||
Disclosure of classes of share capital [line items] | ||||
Number of ordinary shares repurchase | 16,906,795 | |||
Amount of ordinary shares repurchase | $ 86,300,000 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Profit (loss) for the year | $ (21,487) | $ 22,737 | $ 73,223 |
EARNINGS (LOSS) PER SHARE (De_2
EARNINGS (LOSS) PER SHARE (Details 1) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Weighted average number of ordinary shares used to calculate basic earnings (loss) per share as at December 31 | 143,589,188 | 149,937,339 | 144,493,989 |
Basic earnings (loss) per share (in USD) | $ (0.15) | $ 0.15 | $ 0.51 |
EARNINGS (LOSS) PER SHARE (De_3
EARNINGS (LOSS) PER SHARE (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings per share [abstract] | |||
Weighted average number of ordinary shares used to calculate basic earnings per share | 143,589,188 | 149,937,339 | 144,493,989 |
Effect of share options on issue | 0 | 3,120,304 | 8,212,903 |
Weighted average number of ordinary shares used to calculate diluted earnings per share | 143,589,188 | 153,057,643 | 152,706,892 |
Diluted earnings per share (in USD) | $ (0.15) | $ 0.15 | $ 0.48 |
EARNINGS (LOSS) PER SHARE (De_4
EARNINGS (LOSS) PER SHARE (Detail Textuals) - shares shares in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Share options [Member] | |||
Earnings per share [line items] | |||
Options excluded from diluted weighted average number of ordinary shares | 6,749 | 8,851 | 3,061 |
Restricted share units [Member] | |||
Earnings per share [line items] | |||
Options excluded from diluted weighted average number of ordinary shares | 6,749 | 8,851 | 3,061 |
Performance Share Units [Member] | |||
Earnings per share [line items] | |||
Options excluded from diluted weighted average number of ordinary shares | 6,749 | 8,851 | 3,061 |
SHARE-BASED COMPENSATION ARRA_3
SHARE-BASED COMPENSATION ARRANGEMENTS (Details) Share in Thousands | 12 Months Ended | |
Dec. 31, 2023 Share $ / shares | Dec. 31, 2022 Share $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [abstract] | ||
Number of options, Outstanding | 4,772 | 6,026 |
Forfeited during the year | (721) | (828) |
Exercised during the year | (346) | (1,046) |
Granted during the year | 0 | 620 |
Number of options, Outstanding | 3,705 | 4,772 |
Number of options, Exercisable | 2,086 | 1,814 |
Weighted average exercise price, Outstanding | $ / shares | $ 7.31 | $ 6.54 |
Forfeited during the year | $ / shares | 6.33 | 7.61 |
Exercised during the year | $ / shares | 0.67 | 1.96 |
Granted during the year | $ / shares | 0 | 7.22 |
Weighted average exercise price, Outstanding | $ / shares | $ 7.91 | $ 7.31 |
SHARE-BASED COMPENSATION ARRA_4
SHARE-BASED COMPENSATION ARRANGEMENTS (Details 1) | 12 Months Ended | |
Dec. 31, 2023 Share $ / shares | Dec. 31, 2022 Share $ / shares | |
Restricted Share Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares, Outstanding | Share | 5,288,000 | 8,146,000 |
Forfeited during the year | Share | (254,000) | (261,000) |
Exercised during the year | Share | (3,295,000) | (3,374,000) |
Granted during the year | Share | 353,000 | 777,000 |
Number of shares, Outstanding | Share | 2,092,000 | 5,288,000 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 8.277 | $ 8.606 |
Forfeited during the year | $ / shares | 6.275 | 9.948 |
Exercised during the year | $ / shares | 8.208 | 8.091 |
Granted during the year | $ / shares | 2.16 | 4.596 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 7.601 | $ 8.277 |
Performance Stock Units | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of shares, Outstanding | Share | 1,992,000 | 4,486,000 |
Forfeited during the year | Share | (254,000) | (80,000) |
Exercised during the year | Share | (930,000) | (2,582,000) |
Granted during the year | Share | 143,700 | 168,048 |
Number of shares, Outstanding | Share | 952,000 | 1,992,000 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 8.937 | $ 6.796 |
Forfeited during the year | $ / shares | 6.328 | 9.952 |
Exercised during the year | $ / shares | 9.32 | 4.891 |
Granted during the year | $ / shares | 2.16 | 4.453 |
Weighted-Average Grant Date Fair Value, Outstanding | $ / shares | $ 8.238 | $ 8.937 |
SHARE-BASED COMPENSATION ARRA_5
SHARE-BASED COMPENSATION ARRANGEMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense recognized in the statement of operation and other comprehensive income | $ 19,169 | $ 50,505 | $ 42,818 |
Selling and marketing | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense recognized in the statement of operation and other comprehensive income | 3,740 | 10,594 | 7,094 |
Research and development | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense recognized in the statement of operation and other comprehensive income | 3,308 | 8,034 | 3,474 |
General and administrative | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expense recognized in the statement of operation and other comprehensive income | $ 12,121 | $ 31,877 | $ 32,250 |
SHARE-BASED COMPENSATION ARRA_6
SHARE-BASED COMPENSATION ARRANGEMENTS (Detail Textuals) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Share | Dec. 31, 2022 USD ($) Share | Dec. 31, 2021 Share | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Service period vesting conditions | between 0.5-4 years | ||
Number of options outstanding | 3,705,000 | 4,772,000 | 6,026,000 |
Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total expense recognized to employees | $ | $ 2,429 | $ 5,867 | |
Restricted Share Units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted during the year | 353,000 | 777,000 | |
Restricted Share Units | Executives and employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted during the year | 352,800 | 777,448 | |
Restricted Share Units | Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total expense recognized to employees | $ | $ 13,356 | $ 31,923 | |
Performance Stock Units | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Granted during the year | 143,700 | 168,048 | |
Performance Stock Units | Employees | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Total expense recognized to employees | $ | $ 3,384 | $ 12,715 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Total | $ 123 | $ (209) |
Forward exchange contracts used for hedging | ||
Disclosure of detailed information about financial instruments [line items] | ||
Derivatives presented under current assets | 123 | 0 |
Derivatives presented under current liability | $ 0 | $ (209) |
FINANCIAL INSTRUMENTS (Details
FINANCIAL INSTRUMENTS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | $ 438,802 | $ 445,452 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 234,308 | 217,500 |
Trade receivables, net | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 201,973 | 219,837 |
Other receivables | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | 1,996 | 7,709 |
Long term deposit | ||
Disclosure of detailed information about financial instruments [line items] | ||
Maximum exposure to credit risk | $ 525 | $ 406 |
FINANCIAL INSTRUMENTS (Detail_2
FINANCIAL INSTRUMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure of detailed information about financial instruments [abstract] | ||
Balance at January 1 | $ 10,138 | $ 13,870 |
Allowance for doubtful debts expenses (income) | 7,622 | (3,167) |
Discontinuance of consolidation | (275) | 0 |
Write-off | (22) | (542) |
Exchange rate difference | (40) | (23) |
Balance at December 31 | $ 17,423 | $ 10,138 |
FINANCIAL INSTRUMENTS (Detail_3
FINANCIAL INSTRUMENTS (Details 3) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments [abstract] | ||
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in GBP against USD, Impact of 10 Percent Favourable Change in Profit (loss) | $ (1,832) | $ (2,893) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in GBP against USD, Impact of 10 Percent Adverse Change in Profit (loss) | 1,832 | 2,893 |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in GBP against USD, Impact of 10 Percent Favourable Change in Increase (Decrease) in Shareholders’ Equity | (9) | (94) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in GBP against USD, Impact of 10 Percent Adverse Change in Increase (Decrease) in Shareholders’ Equity | 9 | 94 |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in NIS against USD, Impact of 10 Percent Favourable Change in Profit (loss) | 353 | (139) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in NIS against USD, Impact of 10 Percent Adverse Change in Profit (loss) | (353) | 139 |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in NIS against USD, Impact of 10 Percent Favourable Change in Increase (Decrease) in Shareholders’ Equity | 384 | (107) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in NIS against USD, Impact of 10 Percent Adverse Change in Increase (Decrease) in Shareholders’ Equity | (384) | 107 |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in SGD against USD, Impact of 10 Percent Favourable Change in Profit (loss) | (2,348) | (2,615) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in SGD against USD, Impact of 10 Percent Adverse Change in Profit (loss) | 2,348 | 2,615 |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in SGD against USD, Impact of 10 Percent Favourable Change in Increase (Decrease) in Shareholders’ Equity | (6) | (320) |
Sensitivity Analysis of foreign currency risk, Foreign currency denominated in SGD against USD, Impact of 10 Percent Adverse Change in Increase (Decrease) in Shareholders’ Equity | $ 6 | $ 320 |
FINANCIAL INSTRUMENTS (Detail_4
FINANCIAL INSTRUMENTS (Details 4) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets measured at fair value through profit or loss, Investment in shares | $ 25,000 | $ 25,000 |
Level 3 | ||
Disclosure of detailed information about financial instruments [line items] | ||
Financial assets measured at fair value through profit or loss, Investment in shares | $ 25,000 | $ 25,000 |
FINANCIAL INSTRUMENTS (Detail T
FINANCIAL INSTRUMENTS (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Aug. 18, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about financial instruments [line items] | ||||
Allowance account for credit losses of financial assets | $ 17,423 | $ 10,138 | $ 13,870 | |
Unobservable inputs description | the risk-free rate for 10-year debentures issued by the government in the relevant market | |||
Increase of available cash and cash equivalents | $ (426) | (3,287) | $ (209) | |
Percentage of future principal and interest cash flows by market interest rate | 7.064% | |||
Amount of measurement of future principal and interest cash flows by market interest rate | $ 97,291 | |||
VIDAA | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Investments in subsidiaries reported in separate financial statements | $ 25,000 | |||
Proportion of ownership interest in subsidiary | 2.50% | |||
Market risk | Australia, Dollars | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 14,027 | |||
Market risk | Israel, New Shekels | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 5,653 | |||
Market risk | Euro Member Countries, Euro | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 4,571 | |||
Market risk | Singapore, Dollars | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 2,981 | |||
Market risk | Canada, Dollars | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 2,692 | |||
Market risk | United Kingdom, Pounds | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 2,665 | |||
Market risk | Japan, Yen | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | 2,040 | |||
Market risk | Other currencies | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Risk exposure associated with instruments sharing characteristic | $ 1,493 | |||
Interest rate risk | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Percentage increase In interest rate | 5% | |||
Decrease in shareholders’ equity due increase in interest rate | $ 3,700 | |||
Increase of available cash and cash equivalents | 2,800 | |||
Net effect of cash and cash equivalents | 900 | |||
Leases, trade, and other payables | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Contractual obligation of financial liability | 332,782 | 361,820 | ||
Leases, trade, and other payables | Less than one year (0-1) | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Contractual obligation of financial liability | $ 201,955 | $ 239,240 | ||
Buyer 1 | Trade Receivable | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Buyer's percentage out of the total trade receivables | 16.20% | 15.70% | ||
Buyer 2 | Trade Receivable | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Buyer's percentage out of the total trade receivables | 16.50% | 14.10% | ||
Vendor | Leases, trade, and other payables | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Vendors percentage out of total trade payable | 12.70% |
RELATED PARTIES (Details)
RELATED PARTIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of transactions between related parties [abstract] | |||
Share-based compensation | $ 11,527 | $ 30,914 | $ 31,283 |
Other compensation and benefits | 3,988 | 4,433 | 6,752 |
Compensation and benefits to key management personnel | $ 15,515 | $ 35,347 | $ 38,035 |
SUBSIDIARIES (Details)
SUBSIDIARIES (Details) - Subsidiary | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Disclosure of subsidiaries [line items] | |||
Number of wholly owned subsidiaries | 17 | ||
Taptica Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Taptica Inc | ||
Principal location of the Company’s activity | USA | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Tremor Video Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Tremor Video Inc | ||
Principal location of the Company’s activity | USA | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Adinnovation Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Adinnovation Inc | ||
Principal location of the Company’s activity | Japan | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 0% | 100% | |
Taptica UK | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Taptica UK | ||
Principal location of the Company’s activity | UK | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
YuMe Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | YuMe Inc | |
Principal location of the Company’s activity | [2] | USA | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Perk.com Canada Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Perk.com Canada Inc | ||
Principal location of the Company’s activity | Canada | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
R1Demand LLC | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | R1Demand LLC | |
Principal location of the Company’s activity | [2] | USA | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Nexxen Group LLC (f/k/a Unruly Group LLC) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Nexxen Group LLC (f/k/a Unruly Group LLC) | ||
Principal location of the Company’s activity | USA | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Nexxen Group US Holdings Inc. (f/k/a Unruly Group US Holding Inc) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Nexxen Group US Holdings Inc. (f/k/a Unruly Group US Holding Inc) | |
Principal location of the Company’s activity | [2] | USA | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Nexxen Holdings Ltd (f/k/a Unruly Holdings Limited) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Nexxen Holdings Ltd (f/k/a Unruly Holdings Limited) | |
Principal location of the Company’s activity | [2] | UK | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Nexxen Group Ltd (f/k/a Unruly Group Limited) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Nexxen Group Ltd (f/k/a Unruly Group Limited) | |
Principal location of the Company’s activity | [2] | UK | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Unruly Media GmbH | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Unruly Media GmbH | ||
Principal location of the Company’s activity | Germany | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Unruly Media Pte Ltd | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Unruly Media Pte Ltd | |
Principal location of the Company’s activity | [2] | Singapore | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Nexxen Pty Ltd (f/k/a Unruly Media Pty Ltd) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Nexxen Pty Ltd (f/k/a Unruly Media Pty Ltd) | ||
Principal location of the Company’s activity | Australia | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Unruly Media KK | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Unruly Media KK | ||
Principal location of the Company’s activity | Japan | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Unmedia Video Distribution Sdn Bhd | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Unmedia Video Distribution Sdn Bhd | ||
Principal location of the Company’s activity | Malaysia | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
SpearAd GmbH | |||
Disclosure of subsidiaries [line items] | |||
Name of company | SpearAd GmbH | ||
Principal location of the Company’s activity | Germany | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Nexxen Inc. (f/k/a Amobee Inc) | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Nexxen Inc. (f/k/a Amobee Inc) | |
Principal location of the Company’s activity | [2] | USA | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Amobee EMEA Limited | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Amobee EMEA Limited | ||
Principal location of the Company’s activity | UK | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Amobee International Inc | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Amobee International Inc | ||
Principal location of the Company’s activity | USA | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Amobee Ltd | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Amobee Ltd | ||
Principal location of the Company’s activity | Israel | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
Amobee Asia Pte Ltd | |||
Disclosure of subsidiaries [line items] | |||
Name of company | [1] | Amobee Asia Pte Ltd | |
Principal location of the Company’s activity | [2] | Singapore | |
The Group’s ownership interest in the subsidiary for the year ended December 31 | [2] | 100% | 100% |
Amobee ANZ Pty Ltd | |||
Disclosure of subsidiaries [line items] | |||
Name of company | Amobee ANZ Pty Ltd | ||
Principal location of the Company’s activity | Australia | ||
The Group’s ownership interest in the subsidiary for the year ended December 31 | 100% | 100% | |
[1]Under these companies, there are twenty-seven (27) wholly owned subsidiaries that are inactive and in liquidation process.[2]Under these companies, there are seventeen (17) wholly owned subsidiaries that are inactive and in liquidation process. |
OPERATING SEGMENTS (Details)
OPERATING SEGMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of geographical areas [line items] | |||
Revenue | $ 331,993 | $ 335,250 | $ 341,945 |
America | |||
Disclosure of geographical areas [line items] | |||
Revenue | 311,780 | 303,106 | 304,686 |
APAC | |||
Disclosure of geographical areas [line items] | |||
Revenue | 6,537 | 20,031 | 20,931 |
EMEA | |||
Disclosure of geographical areas [line items] | |||
Revenue | $ 13,676 | $ 12,113 | $ 16,328 |
CONTINGENT LIABILITY (Detail Te
CONTINGENT LIABILITY (Detail Textuals) | 1 Months Ended |
Mar. 31, 2023 | |
Alphonso Inc [Member] | |
Disclosure of contingent liabilities [line items] | |
Explanation of reimbursement | Alphonso remitted USD 11.3 million to the Company, comprising USD 7.25 million related to a secured advance repayment and USD 4.1 million related to additional interest, penalties and fees including reimbursement of certain legal fees. |