SUMMARY
- Online gaming company Nazara Technologies saw its consolidated net profit increase by nearly 13% to Rs 23.6 crore in Q1 FY25 from Rs 20.9 crore in Q1 FY24.
- The company’s total revenue for the quarter was Rs 275.6 crore, an increase from Rs 266.2 crore in Q1 FY24.
- The total expenses of Nazara increased by 1.3% YoY to Rs 240.9 crore in Q1 FY25 and decreased by 15.4% QoQ from Rs 284.9 crore in Q4 FY24.
Online gaming company Nazara Technologies saw its consolidated net profit increase by nearly 13% to Rs 23.6 crore in Q1 FY25 from Rs 20.9 crore in Q1 FY24.
Despite a 1.7% YoY decrease in its operating revenue to Rs 250.1 crore during the reviewed quarter, Nazara was able to boost its profit margin. This was mainly due to a slowdown in growth across two of its key areas – gaming and adtech.
The gaming segment experienced a 15% YoY decrease in revenue to Rs 92.8 crore, while the adtech segment saw a 1.7% YoY decrease to Rs 25.7 crore. The gaming segment includes popular games like Kiddopia and Animal Jam.
Nazara mentioned that its adtech division, Datawrkz, is looking into merger and acquisition (M&A) deals to accelerate its growth and profitability through synergies.
On the other hand, the esports division, which includes NODWIN Gaming and Sportskeeda, saw a 12% YoY increase to Rs 131.9 crore in the first quarter of FY25.
Thanks to an increase in other income, the company’s total revenue for the quarter was Rs 275.6 crore, an increase from Rs 266.2 crore in Q1 FY24.
Nazara’s net profit saw a 98% YoY drop to Rs 18 lakh in Q4 FY24, due to a loss of Rs 16.9 crore from writing off some of its older businesses, including Halaplay.
On a quarter-to-quarter basis, Nazara’s operating revenue in Q1 FY25 fell by 6% from Rs 266.2 crore in Q4 FY24.
The gaming giant has been active in acquiring companies in the current fiscal year. Recently, it acquired a 100% stake in Paper Boat Apps (Kiddopia) and Fusebox. Its subsidiary, NODWIN, has also taken over 100% stakes in Freaks4U and ComicCon India in 2024.
Nazara joint MD and CEO Nitish Mittersain commented while announcing Q1 FY25 earnings, “We are focused on driving profitable growth in FY25 and beyond via organic growth of our existing businesses as well as M&A, especially in the core gaming sector.”
He added, “In FY24, our team focused on building a strong pipeline of opportunities and as we move into FY25, we are strategically deploying our cash reserves to acquire businesses that align with our vision and will further strengthen our platform for long-term growth.”
The total expenses of Nazara increased by 1.3% YoY to Rs 240.9 crore in Q1 FY25. However, Nazara was able to keep its expenses in check on a QoQ basis. Its expenses decreased by 15.4% in Q1 FY25 from Rs 284.9 crore in Q4 FY24.
The company’s spending on content, events, and web servers saw a significant 20% YoY decrease to Rs 84.7 crore in Q1 FY25. However, this was offset by a 6.2% increase from Rs 79.8 crore in Q1 FY24.
Nazara allocated approximately Rs 41 crore for ads and promotions in Q1 FY25, marking a decrease on both QoQ and YoY basis, as it spent Rs 45.7 crore under this head in the same quarter last year.
The spending on employee benefit expenses rose by about 16% QoQ and 13% YoY to Rs 51.3 crore in the quarter under review.
