Nazara Technologies posts Rs 13.6 cr net profit for June quarter, announces new step-down subsidiary in Dubai

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Nazara Technologies Limited on Friday announced its un-audited standalone and consolidated results for the quarter ended 30th June 2021, posting a net profit of Rs 13.6 crore. Nazara has diverse business segments with revenue generation happening across gamified learning, Esports, freemium, and telco subscriptions.

The company had reported a loss of Rs 21.7 crore in the April-June 2020 period. Its revenue during April-June 2021 jumped 45 per cent to Rs 131.2 crore, compared with Rs 90.5 crore in the year-ago period, news agency PTI reported.

The esports segment’s revenue doubled to Rs 53.2 crore, while that of Gamified early learning segment grew about 46 per cent to Rs 52.1 crore in the June 2021 quarter from the year-ago period.

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Revenue from freemium, telco subscription and real money gaming stood at Rs 5.8 crore, Rs 17.9 crore, and Rs 2.2 crore, respectively, in the reported quarter.

Commenting on the performance, Mr. Manish Agarwal, Group CEO, said “The Q1 FY22 results revenue growth and especially enhanced EBITDA margins demonstrate intrinsic strength & profitability of the underlying businesses across all of three growth segments. However, we will continue to prioritize strategic growth over margin optimization to ensure that we continue to achieve and maintain leadership in the segments we operate. Nazara continues to see strong consumer and partner interest across each of our segments and business KPIs across segments continue to remain healthy in this quarter which will further help in reinforcing the leadership position of the Company across esports, gamified learning, and cricket simulation mobile games. The recent acquisition of a majority stake in Publishme will further amplify our presence in MENA region. The acquisition will focus to build local execution capabilities cutting across key growth segments of freemium, gamified learning, and esports.”Business key performance indicators across segments continue to remain healthy in this quarter, which will further help in reinforcing the leadership position of the company across e-sports, he said.

In June, Nazara had announced the acquisition of a 69.82 percent stake in Publishme, the largest mobile game publishing agency in the Middle East and Turkey, for about Rs 20 crore.

A separate filing by the firm on Friday said Nazara Technologies FZ–LLC, a wholly-owned subsidiary of the company (in Dubai), has incorporated ”Publishme Global FZ-LLC” as a wholly-owned subsidiary in Dubai Media City, thus making Publishme Global FZ-LLC a step-down wholly-owned subsidiary of the company.

The entity has been incorporated for carrying out activities including digital content creation, gaming and e-sports, media and marketing services, media and marketing consultancy, and news media, it said.