Nazara Tech announces Q1 results; Revenue, EBITDA soars

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Gaming and sports media company Nazara Tech Ltd. recently announced the Q1 results for the period ended FY 2023-24. In a regulatory filing, it was revealed that the revenue increased by 13.9% for the quarter, which amounted to Rs 254.4 crores.

The Profit After Tax (PAT) margins also remained robust. The PAT, which was recorded at Rs 15.9 crore for Q1 FY22-23, increased to Rs 20.9 crores, thereby indicating a 31% percent rise Y-o-Y (Year-on-Year). Reportedly, this is the tenth consecutive quarter for the company ever since it’s listing in March 2021, where the company put out an increase in its margins.

As per Mint’s reports, Nazara Tech’s founder, CEO and Joint MD Nitish Mittersain, said, “Our revenue and EBITDA growth is expected to accelerate in coming quarters due to seasonality and our decision to defer key esports launches to benefit from upcoming opportunities. Of note, Sportskeeda continued to deliver a strong performance, with a strong 52% growth YoY in revenues and 55% in EBITDA.”

Operating in multiple segments, esports contributed the most to overall revenues of the firm, which stood at 46 percent. Meanwhile, gaming and adtech contributed the remaining 54 percent to the consolidated revenues.

28% GST on online gaming to have minimal impact on Nazara’s revenue

The Mumbai-based gaming giant’s revenue for the upcoming quarter(s) remains in jeopardy with recent changes in GST on online gaming. However, Nazara clarified that the change in GST rates will have minimal impact on its overall revenues. This is because RMG (real money gaming) segment contributes only about 4.7 percent of its consolidated revenue.

Recently, Nazara Tech’s board of directors also approved the proposal to raise up to Rs 750 crores through an equity-backed issue. Notably, this will be the company’s first-ever fund-raising round ever since it got listed on the stock exchange.