Cash flow
Cash flow from operating activities in Q3 2024 was an outflow of € (11.4) million, mainly due to movements in net
working capital reflecting a decrease in trade and other payables of € (40.9) million and a decrease in trade and
other receivables of € 18.9 million, € (7.8) million paid on interest and € (0.8) paid in income tax, partly offset by
operating profit after adjustments. Cash flow from investing activities was an inflow of € 2.0 million, mainly due to
the receipt of deferred consideration for the sale of the social card games portfolio in amount of € 11.6 million,
partly offset by payments for intangible assets of € (4.3) million and net cash outflow on acquisition of
subsidiaries of € (5.2) million. Cash flow from financing activities was an inflow of € 45.9 million, mainly due to net
proceeds in the amount of € 48.2 million (net of transaction costs) from additional bonds placed under the
existing Senior Secured Callable Floating Rate Bond framework offset by repayments of external borrowings and
the principal portion of lease liabilities amounting in total to € (2.3) million.
Cash flow from operating activities in YTD Q3 2024 was an outflow of € (3.0) million, mainly due to movements in
net working capital reflecting a decrease in trade and other payables of € (37.3) million and a decrease in trade
and other receivables of € 27.4 million, € (18.3) million paid on interest and € (3.0) paid in income tax, partly
offset by operating profit after adjustments. Cash flow from investing activities was an outflow of € (18.6) million,
mainly due payments for intangible assets of € (13.8) million and net cash outflow on acquisition of subsidiaries
of € (16.0) million, partly offset by the receipt of net deferred consideration for the sale of social card games
portfolio in amount of € 11.2 million. Cash flow from financing activities was an inflow of € 49.4 million, mainly due
to net proceeds from borrowings of € 57.6 million offset by repayments of external borrowings and the principal
portion of lease liabilities amounting in total to € (8.0) million.
Capex
Azerion capitalises development costs related to the internal development of assets, a core activity to support
innovation in its platform. These costs primarily relate to developers’ time devoted to the development of the
platform, games and other new features. In Q3 2024 Azerion capitalised € 3.8 million, equivalent to 14.3% (Q3
2023: € 3.9 million, equivalent to 16.2%) of gross personnel costs excluding restructuring provision expense. In YTD
Q3 2024 Azerion capitalised € 11.4 million, equivalent to 15.0% (YTD Q3 2023: € 14.1 million, equivalent of 17.5%) of
gross personnel costs excluding restructuring provision expense.
Financial position and borrowing