Bottom line focus yields best Q1 profitability in company history
2026 is the first year in which we fully focus on the Azerion advertising platform after discontinuing our Premium Games segment in 2025. That focus had a very positive effect on our first quarter. Our overall profitability went up, despite divesting from a segment that contributed positively to the group’s bottom line. This is because the projects we deployed in the last years to optimise the advertising platform are paying off.
Results for the continuing operations
| Q1 2026 |
|
Improving profitability driven by strong operational leverage
In what is known to be the slowest seasonal quarter in advertising, the Q1 2026 operating profit of our continuing operations improved by € 4.2 million year-over-year, moving from € (6.2) million to € (2.0) million. Our core business is performing better than ever. While top-line revenue remained stable at € 117.4 million, our reported EBITDA improved significantly by 42.6% to € 6.7 million.
Building on initiatives from 2025, our focus throughout Q1 2026 has been on driving operational leverage. By increasing our business output with a leaner, tech-enabled workforce, we are proving our ability to do more with less. This record Q1 2026 performance is the direct result of two key factors: We further reduced our operating and personnel costs across the Group mainly through deploying AI to automate our everyday workflows and several acquisition integrations are now generating the full expected synergies.
Results for the discontinued operations
| Q1 2026 |
|
Winding down the segment after divesting Whow Games
The year-over-year drop in our discontinued operations is the result of divesting Whow Games, which previously made up the vast majority of this segment. The remaining € 2.6 million in revenue comes from the portions of our Premium Games segment that are held for sale (e.g. Habbo Hotel and Hotel Hideaway).
Total results for the Group
| Q1 2026 |
|
Improved profitability despite the divestment of Premium Games
Our overall Group results show an increasingly profitable Platform and a much cleaner balance sheet. Our operating profit improved by 69.1% year-over-year. We achieved this even while absorbing the discontinuation of the Premium Games segment (including the divestment of Whow Games), which contributed significantly to our group results.
This quarter, we successfully wrapped up legacy projects including extinguishment of liabilities related to the Targetspot / Llama acquisition. We settled most of our loan with Principion Holding B.V., receiving 10.5 million shares and reducing the loan balance to € 8.2 million. We also refinanced our bonds in 2025, which secured a new 4-year term while reducing both the principal amount and the interest rate, reducing the Q1 interest burden.
Attachment
