Nazara Tech Q2 results: Net profit jumps 53.3%
November 09, 2023

Nazara Tech Q2 results: Net profit jumps 53.3% to Rs 24.2 crore, revenue up 13%

Nazara Technologies on November 8 reported a net profit of Rs 24.2 crore for the quarter ended September 31, 2023, registering a 53.3 percent jump from Rs 15.77 crore profit in the year-ago quarter, led by strong performance in its gaming and esports segments.

Revenue from operations was at Rs 297.2 crore for the quarter, up 12.7 percent from Rs 263.8 crore in the corresponding quarter last year. EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 30 percent to Rs 27.9 crore as against Rs 21.4 crore in Q2FY23.

For the first half of FY24, Nazara reported a 42 percent year-on-year (YoY) increase in profit after tax to Rs 45 crore as against Rs 31.7 crore profit in H1FY23. Revenue from operations grew by 13 percent to Rs 551.7 crore as against Rs 486.9 crore in H1FY23.

Nazara Technologies currently operates in three key sectors - gaming (World Cricket Championship, Kiddopia, Animal Jam, Classic Rummy etc), esports (Nodwin Gaming, Sportskeeda) and advertising (Datawrkz).

During the quarter, Nazara Technologies raised Rs 510 crore from SBI Mutual Fund and Zerodha co-founder Nikhil Kamath, as the diversified gaming and sports media company looks to build a warchest for potential acquisitions to grow its existing businesses. The company has shareholder approval to raise up to Rs 750 crore.

"Our strategic focus remains strong as we lay a robust foundation not only for the remainder of FY24 but also for FY25. With a consolidated cash position around Rs 1,300 crore, Nazara is exceptionally well-positioned to seize acquisition opportunities and expedite our growth in the years ahead," said Nazara Technologies founder Nitish Mittersain.

Last month, the firm also unveiled a new game publishing division, Nazara Publishing, to publish games made by Indian developers across the world and also partner with global developers to localise and bring these games to India.

Nazara Technologies plans to launch up to 20 games across mobile, web3, virtual reality (VR) and personal computer (PC) over the next 18 months and invest a minimum of Rs 1 crore a game.

"We recognize the substantial 'Make in India' potential within the gaming industry, where Indian developers have the opportunity to create top-tier games for both the domestic and international markets" Mittersain said.

Segment-wise performance

Esports remained the biggest vertical for the company, with revenues of Rs 172 crore in Q2FY24, up 26 percent from Rs 136.6 crore in Q2FY23. The segment accounted for 58 percent of Nazara's Q2 topline.

Nodwin Gaming saw a 20 percent increase in its revenues to Rs 125.4 crore for the quarter, while Sportskeeda witnessed a 47 percent jump in its revenues to Rs 41.4 crore.

The gaming vertical reported revenues of Rs 104.3 crore for the quarter, up 14 percent YoY from Rs 91.67 crore in Q2FY23. The segment accounted for 35.1 percent of the company's overall Q2 revenues.

Nazara's adtech business however saw a 37 percent decline in its revenues to Rs 22.5 crore for the quarter, from Rs 35.5 crore.

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