Mumbai-based gaming and sports media company Nazara Technologies has announced robust financial results for the third quarter ended December 31, 2023. The company reported a net profit of Rs 29.52 crore, marking an impressive 46.7 percent increase from the same quarter of the previous year. This surge in profit was mainly driven by the stellar performance of its esports vertical, even as the gaming and adtech segments experienced slight declines in profits.
During the quarter, Nazara Technologies recorded total revenue from operations amounting to Rs 320.4 crore, reflecting a moderate two percent year-on-year growth. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) also saw a substantial increase of 24 percent year-on-year, reaching Rs 37.7 crore for the quarter, reported Moneycontrol.
Nazara’s Founder, Nitish Mittersain, expressed confidence in the company’s growth strategy, emphasizing the significance of acquiring global gaming IPs and leveraging data-driven product innovation. Nazara Technologies recently secured Rs 250 crore in funding from a consortium of new and existing investors, including prominent names like Zerodha co-founder Nikhil Kamath and Plutus Wealth.
CNBC report mentioned that Nazara Technologies appointed Dhaval Sheth as head of strategic initiatives starting 19th February 2024, and also designated him as senior management personnel of the company. He has served as the chief financial officer of Paper Boat Apps Private Ltd, a subsidiary of the company, since March 17, 2020.
Nazara Technologies’ segment-wise performance in Q3-FY24 highlights that Esports is the top revenue generator, with revenues soaring to Rs 193.7 crore, up 27 percent year-on-year. Nodwin Gaming had a 20 percent increase in revenue while Sportskeeda saw 68 percent jump in its revenue, reflecting the growing popularity of esports and sports content among consumers.
However, the gaming vertical witnessed a slight decline in revenues, attributed to various factors such as increased user acquisition costs and lower marketing spends. The real-money gaming business experienced a significant revenue halving due to the impact of the government’s GST regime, leading to a loss for the quarter. Additionally, Nazara’s adtech business saw a decline in revenues, although the company remains focused on diversifying its client base to minimize dependency on a few customers.
Looking ahead, Nazara Technologies remains committed to driving innovation and value creation across its business segments. With a strong emphasis on strategic investments, acquisitions, and product innovation, the company is well-positioned to capitalize on emerging opportunities in the gaming and sports media industry, both in India and globally.