Loss-Making Azerion Group N.V. (AMS:AZRN) Expected To Breakeven In The Medium-Term

With the business potentially at an important milestone, we thought we'd take a closer look at Azerion Group N.V.'s (AMS:AZRN) future prospects. Azerion Group N.V. operates a digital entertainment and media platform worldwide. The €263m market-cap company’s loss lessened since it announced a €134m loss in the full financial year, compared to the latest trailing-twelve-month loss of €12m, as it approaches breakeven. The most pressing concern for investors is Azerion Group's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

Check out our latest analysis for Azerion Group

According to the 2 industry analysts covering Azerion Group, the consensus is that breakeven is near. They anticipate the company to incur a final loss in 2023, before generating positive profits of €5.2m in 2024. The company is therefore projected to breakeven just over a year from today. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 112% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.

Underlying developments driving Azerion Group's growth isn’t the focus of this broad overview, though, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

Before we wrap up, there’s one issue worth mentioning. Azerion Group currently has a debt-to-equity ratio of over 2x. Typically, debt shouldn’t exceed 40% of your equity, and the company has considerably exceeded this. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

There are too many aspects of Azerion Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – Azerion Group's company page on Simply Wall St. We've also compiled a list of pertinent factors you should further research:

1. Valuation: What is Azerion Group worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Azerion Group is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Azerion Group’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.