Regulatory Intimation and Event Changes

Affle 3i Limited submitted a disclosure under Regulation 30 of SEBI LODR Regulations informing about material developments. Due to a material development in the Group, the company will not be holding its Earnings Conference Call scheduled for Monday, November 02, 2026 at 10:00 AM (IST). Instead, the company is releasing a Shareholders' letter.

The company will attend an in-person investors group meeting hosted by Ambit Capital on Monday, November 2, 2026 at 04:30 PM (IST) in Mumbai to address the announcement made for the execution of the definitive agreement regarding the acquisition of Perion Network Ltd. by the step-down subsidiary of the company.

Investors can join the meeting virtually through Zoom Webinar (Webinar ID: 960 5034 9641) and email queries to investor.relations@affle.com until 4:30 PM IST on November 2, 2026. Any Q&A session will be moderated by Ambit Capital.

Financial Performance Highlights - H1 FY2027

Consolidated Performance:

  • Revenue: ₹15.31 billion, growing 20.8% year-on-year
  • EBITDA: ₹3.49 billion, growing 22.1% year-on-year
  • PAT: ₹2.58 billion, growing 19.5% year-on-year
  • EBITDA Margin: 22.8%
  • PAT Margin: 16.4%
  • Consumer Conversions: 252.85 million
  • CPCU Rate: ₹60.4

Financial Performance Highlights - Q2 FY2027

Consolidated Performance:

  • Revenue: ₹7.84 billion, growing 21.2% year-on-year and 4.9% sequentially
  • EBITDA: ₹1.81 billion, growing 24.2% year-on-year and 8.2% sequentially
  • PAT: ₹1.30 billion, growing 17.4% year-on-year and 1.1% sequentially
  • EBITDA Margin: 23.2% (expanding 56 basis points year-on-year and 72 basis points sequentially)
  • PAT Margin: 16.2%
  • Profit before tax from operations (excluding other income): ₹1.40 billion, growing 23.3% year-on-year and 5.0% sequentially
  • Consumer Conversions: 128.93 million, growing approximately 18.2% year-on-year
  • CPCU Revenue: ₹7.82 billion, growing approximately 23.7% year-on-year
  • CPCU Rate: ₹60.6

Business Performance Drivers

CPCU Business Growth: The differentiated Cost Per Converted User business model delivered healthy growth with improved CPCU rate supported by focus on higher-lifetime-value user conversions and higher CPCU contributing verticals. Increasing penetration across Developed Markets also contributed to improved CPCU rate.

Profitability Improvement: EBITDA margin expansion was driven by favorable movement in inventory and data costs, supported by better AI-powered optimization and scalability of cloud platform. Employee costs increased at a measured pace due to AI-led productivity gains. Other expenses increased 11.0% sequentially due to higher business promotion activities.

Depreciation and Amortization: Increased in line with historical Q2 trend reflecting periodic capitalization of technology development costs as projects move from work-in-progress to assets put to use. The company follows consistent four-year amortization policy for capitalized technology.

Foreign Exchange Impact: Other income was impacted by foreign exchange volatility, which influenced the overall profit after tax performance.

Geographic Market Performance

Developed Markets: Recorded year-on-year revenue growth of approximately 22.3%, contributing 26.3% of total revenues.

India and Global Emerging Markets: Collectively grew by approximately 20.8% year-on-year, contributing 73.7% of revenues. Within India, adjusted revenue growth stood at approximately 18.1%, partly influenced by stronger comparative base due to Diwali timing differences.

Cash Flow and Working Capital

Collections improved in Q2, leading to OCF-to-PAT ratio of 75.6% in Q2 FY2027, improving the overall OCF-to-PAT ratio to 64.9% for H1 FY2027. The company aims to maintain OCF-to-PAT ratio of approximately 80% for the full year through efficient working capital management.

Customer Engagements and Case Studies

The company delivered approximately 1,000 consumer conversions every minute through its performance-led, AI-powered Consumer Platform. Three customer-approved case studies were highlighted:

1. Healthcare India - Orange Health Labs: Leveraged GenAI-based keyword recommendations, AI-powered scorecards and agentic AI to improve iOS app discovery. Campaign delivered 53% sequential uplift in purchases and 39% revenue growth.

2. Consumer Electronics India - JBL: Combined intent-driven audience discovery, premium Connected TV storytelling and proprietary Household Sync capabilities. Campaign achieved 95% video completion rate and 40% click-to-visit rate.

3. Gaming United States - CrazyGames' Space Waves: Leveraged data science-led lifetime value prediction and interactive ad formats. Campaign delivered 2x increase in total revenue and greater than 200% uplift in repeat ad revenue event conversions.

Awards and Recognitions

The company received 22+ award wins and recognitions across 10+ industry events during Q2 FY2027, including:

  • e4m REALTIME Programmatic Awards 2026: Six awards
  • Programmatic Asia Symposium & Awards 2026: Gold and Silver awards
  • Marketing-Interactive Marketing Excellence Awards Indonesia 2026
  • Marketing-Interactive Marketing Excellence Awards 2026
  • DigiPlus Awards 2026: Gold and Silver awards
  • Global Consistent Partner recognition by a leading global smartphone brand

Technology and Intellectual Property

The company filed a new patent application focused on mobility-led out of home advertising across autonomous and connected vehicles. The IP portfolio includes 40 filed patents and 300+ unique enforceable patent claims spanning fraud intelligence, human-versus-non-human data distillation, precision targeting, and contextual advertising.

Outlook and Guidance

The company maintained its 20%+ medium-term growth guidance despite prevailing geopolitical tensions, and regulatory and macroeconomic headwinds affecting certain customer segments including RMG, FinTech and other categories. The focus remains on sustaining growth momentum, deepening competitive differentiation and scaling CPCU business across Developed and Emerging Markets.