Nazara Technologies Limited, a gaming and sports media unicorn, announced its unaudited standalone and consolidated financial results for the quarter ending June 30, 2023.
In Q1FY24, its revenue grew by 14 per cent year-on-year (YoY), reaching Rs 254.4 crores, while its Profit After Tax (PAT), rose by 31 per cent YoY, amounting to Rs 20.9 crores. It achieved a 13 per cent upswing in its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin in Q1FY24, indicating its ability to generate healthy operating profits relative to its revenue. This reflects positively on its operational efficiency and effective cost management.
Nazara also witnessed a healthy 10 per cent YoY growth, amounting to Rs 33.1 crores. It claimed it had achieved a milestone of 10 consecutive quarters of YoY growth in both revenue and profits since its initial public offering (IPO).
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Commenting on the Q1FY24 performance, Nitish Mittersain, founder, CEO, and joint MD of Nazara Technologies 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 per cent growth YoY in revenues and 55 per cent in EBITDA.”
He added that the recent announcements related to skill-based real money gaming business will have minimal impact on Nazara’s overall financial performance as its contribution is limited to 4.7 per cent of the company’s revenue and 0.5% of its EBITDA in Q1FY24.
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“We continue to build a healthy pipeline of M&A opportunities in various segments that we operate in, focusing on adding gaming IPs and strong teams to our platform. This is our 10th quarterly results since our IPO, delivering consistent YoY growth in revenues and profits. We remain dedicated to our stated vision of building out a well-diversified gaming platform that keeps growing stronger as the gaming industry evolves,” Mittersain stated.
Earlier this month, Nazara Technologies said in a stock exchange filing that its board had approved raising of up to Rs 750 crore using a combination of equity shares and equity-linked instruments or securities. This will be its first fundraising activity after its IPO in March 2021, when it raised Rs 583 crore.
Founded in 1999, Nazara is present in India and across emerging and developed global markets such as Africa and North America. Its offerings span interactive gaming, esports, ad-tech and gamified early learning ecosystems including World Cricket Championship (WCC) in mobile games, Kiddopia and Wildworks in gamified early learning, Nodwin, PublishMe and Sportskeeda in eSports and eSports media, OpenPlay, Halaplay and Qunami in skill-based, fantasy and trivia games, and Datawrkz in digital adtech.
