SUMMARY
- MPL’s revenue from operations grew 22.2% to reach Rs 1,068 crore during FY24.
- The company’s overall expenditure increased by 2% to Rs 1,393.2 crore.
- The company’s losses increased by 21.2% to Rs 374.9 crore.
Despite facing regulatory challenges, M-League, the parent company of Mobile Premier League (MPL), has managed to achieve substantial growth in revenue in FY24.
According to the consolidated financial statements filed by its group company, M-League Ltd in Singapore, MPL’s revenue from operations grew 22.2% to reach Rs 1,068 crore ($127.9 million) during FY24, up from Rs 873.7 crore ($104.63 million) in the previous fiscal year.
Mobile Premier League operates an online gaming platform that offers a variety of categories, such as fantasy sports, adventure, and action games. The firm was also engaged in the sale of sporting merchandise, but it discontinued this vertical during the year ended March 2023 (FY23).
MPL generated 99% of its revenue from online gaming, while the remaining income came from advertisements and other operating activities. Including non-operating income, the company’s overall revenue surged to Rs 1,085.17 crore or $130 million during the last fiscal year.
The subsidiaries of MPL are incorporated in various countries, including India, Indonesia, Germany, Singapore, and the United States. All these entities are owned by the group company, M-League Ltd, which is headquartered in Singapore.
Geographically, India remains the largest market for MPL, contributing 69% to the total revenue in fiscal year 2024 (FY24). This is followed by Europe, the United States, and Nigeria, which contributed 27.9%, 2.6%, and 0.5% respectively. It’s worth noting that MPL did not generate any revenue in Singapore during the last fiscal year, which had previously accounted for 3.5% of the total revenue in FY23.
In terms of geographical revenue growth, the Indian market saw a 35.2% increase in revenue, reaching Rs 737.1 crore. Europe also experienced an 11.8% growth in revenue, reaching Rs 298.10 crore in FY24. However, revenue from the United States declined by 11.7% to Rs 27.81 crore. Meanwhile, Nigeria, which had no revenue last year, generated Rs 5 crore in revenue.
On the expense side, advertising and promotional costs were the largest cost center, accounting for 31.8% of the total expenses. This cost increased by 6.8% to Rs 442.97 crore in FY24. Following the layoffs of 350 employees in August 2023, employee benefit expenses shrank by 28% to Rs 429.53 crore. This cost also includes ESOP (Employee Stock Option Plan) costs worth Rs 121.4 crore in FY24.
Other major expenses, such as hosting & IT support services, payment gateway, royalty, and licensing fees, also contributed significantly to the total expenses. The company’s overall expenditure increased by 2% to Rs 1,393.2 crore during the year, up from Rs 1,365.7 crore in FY23.
Despite controlled cash expenditures, the company’s losses increased by 21.2% to Rs 374.9 crore ($44.9 million), which can be attributed to the fair value loss on financial instruments worth Rs 92.93 crore. Excluding this fair value loss, the company’s adjusted loss stands at Rs 282 crore.
The Bengaluru-based company’s operational efficiency is also evident from its positive operating cash flows of Rs 157 crore in the last fiscal year, compared to Rs -531.8 crore in FY23. Its EBITDA margin and ROCE stood at -21.39% and -32.88%, respectively. On a unit level, MPL spent Rs 1.3 to earn a rupee of operating revenue in FY24.
Amid GST regulations and other legal challenges, the firm also shut down its web3 fantasy platform Striker in December.
MPL has raised $395 million in funding to date from investors including Peak XV Partners, SIG Global, GV Games, RTP Global, Moore, and Beenext. It was valued at around $2.3 billion following the Series E funding in September 2021.
