Q3 FY 2021-22: Nazara reports 75% YoY growth in eSports, freemium segment revenue falls by 34%

Published on:

Ace investor Rakesh Jhunjhunwala-backed gaming and sports media company Nazara Technologies on Friday reported a 16.6 percent year-on-year decline in its consolidated net profit at Rs 8.5 crore for the quarter ending 31 December 2021. The company had posted a net profit of Rs 10.2 crore in the year-ago for the same period.

Also read: Nazara allots 6.48 lakh equity shares to Unnati Management, completes OpenPlay acquisition

For Q3FY22, the gaming company reported a revenue of Rs. 185.8 crores vs Rs. 130.4 crores in Q3FY21, a growth of 42% on a YoY basis. The Q3 EBITDA of the Company stood at Rs 30.2 crores as compared to Rs. 27.3 crores in the same quarter of the previous year. The company’s net profit dropped marginally from Rs 10.1 crore in the September quarter.

You may like: Combination of acquisitions and growth helped Nazara Technologies grow 87%: CEO Manish Agarwal

According to the company investor presentation, the eSports segment saw YoY growth of 75%, Gamified early learning at 22%, Freemium gaming at 3%, and Real money gaming at 53%. “We have witnessed 75% YoY growth in the esports segment for 9MFY22 led by strong growth in revenue across all subsegments in Nodwin and SportsKeeda. The addition of original IPs such as NH7 Weekender and expansion of our esports business into the Middle East via our acquisition of Publishme has further accelerated the growth momentum,” Manish Agarwal, group CEO, Nazara Technologies, said.

For nine months ended December 31, 2021, the company recorded over a four-fold jump in its consolidated profit after tax at Rs 42.8 crore, from Rs 9.4 crore in the year-ago period. Kiddopia, its learning app targeted at kids saw an increase in active subscribers by 3,039 paying subscribers to a total of 327,738 subscribers at the end of Q3.

Also read: Nazara Technologies raises Rs 315 cr for strategic acquisitions, growth initiatives

Nazara’s strategy of having a diversified portfolio across business segments in gaming continues to provide us with a stable and strong platform on which we can continue to build future growth and success. Nazara continues to remain committed to building multiple growth levers across gamified learning, freemium, esports and skill-based real money gaming via growth in its current portfolio and the addition of more offerings in the ‘Friends of Nazara’ network through strategic M&A,” Manish Agarwal, group CEO, Nazara Technologies, said.

In Q3, Nazara completed the acquisition of a 100% stake in Hyderabad-based skill gaming company OpenPlay Technologies Private Limited for a consideration of Rs. 186.4 crores for a 100% stake. The consideration of Rs. 43.43 crores for the first tranche of strategic investment was paid in cash and the remaining Rs. 143 crores by way of issuance of equity shares. The Company reported that its sports news venture Sportskeeda crossed 60.0 million MAUs as of December 2021 and 136 million visits per month for Q3FY22.