Nazara declares half-yearly financials for FY 2021-22

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Nazara Technologies, the first gaming company to be listed in the country’s stock market has announced its first half-yearly results since listing. The gaming company got listed in the month of March 2021. As per the company’s press release, the operating revenue grew by 30% YoY to Rs. 2,608 million, while EBITDA stood at Rs. 496 million. Gamified learning accounted for 41% of the consolidated revenue mix.

Other key highlights include:
EBITDA margins stood at 19.0% v/s 3.1% for H1FY21;
Delivered a PAT of Rs. 280 million vs loss of Rs. 83 million in H1FY21;
PAT margin of 10.3%; and
Recorded a positive Net Cash Flow from Operations of Rs. 489 million in H1FY22.

Source: Company press release

Commenting on the performance, Mr Manish Agarwal, Group CEO, said:

Nazara declared revenue of Rs.260.8 Cr and EBITDA of Rs.49.6 Cr H1 FY22. Revenue grew by 30% in H1 FY22 over H1 FY21 while EBITDA grew by 700% over the same period. We have built strong execution platform in the first half of the year and we expect to accelerate revenue growth further in the latter half on the back of strong tailwinds. We expect our FY22 consolidated revenues to grow in the range of 35%-40% on YoY basis with EBITDA margins profile at 13% – 15%. The growth shall be supported by organic and inorganic activities.’’

In August, Nazara acquired OpenPlay, a Hyderabad-based skill gaming company. This acquisition, Nazara stated, was worth Rs 186.4 crore. Last month, the CEO Manish Agarwal said a combination of acquisitions and growth helped Nazara grow in recent years.

Recently, the Company Board approved the issuance of 1,429,266 equity shares of the face value of Rs. 4/- each at a price of Rs. 2,206/- per equity share for raising Rs 315 crores from marquee institutional investors with a lock-in period of 1 year from the date of issue.

This infusion of fresh funds will be utilized to invest in growth initiatives of the company as well as pursue strategic acquisitions in the various business verticals of the company including gamified learning, freemium, skill-based real money gaming, and esports, the gaming company stated.

A few days back, the gaming firm acquired 1,601 equity shares in Rusk Media for over Rs. 2 crore. The gaming firm is now holding 5.54% of the issued and paid-up share capital in the digital media firm that focuses on creating engaging content for new-age audiences.