Nazara Q1 revenue up 70% to Rs 223.1 crore

Net profit was up 22% at Rs 16.5 crore from Rs 13.5 crore

e4m by exchange4media Staff
Published: Jul 29, 2022 7:02 PM  | 3 min read

Nazara Technologies, a diversified gaming, and sports media company, has reported a 70% growth in Q1 revenue at Rs 223.1 crore compared to Rs 131.2 crore in the same quarter last year.

Total expenses rose 91% to Rs 193 crore from Rs 101.1 crore. EBITDA remained flat at Rs 30.1 crore against Rs 30.1 crore in Q1 FY22. Net profit was up 22% at Rs 16.5 crore from Rs 13.5 crore.

E-sports increased 92% to Rs 102.3 crore from Rs 53.2 crore. The company said that the growth in IPs and media rights led to 68% YoY growth in Nodwin Gaming. Strong MAU growth, especially in higher ad yields in the US market led to 103% YoY growth at Sportskeeda

Gamified early learning remained flat at Rs 52.5 crore against Rs 52.1 crore. The company stated that the increase in subscription pricing has stabilised the unit economics model in the Gamified early learning segment.

The company recorded Rs 32.1 crore in revenue from the ad-tech segment. The company added a new growth engine with Datawrkz, a US-based programmatic advertising, and monetization company. Datawrkz operates in a $700 bn addressable market

Real money gaming was up 6X to Rs 13.8 crore from Rs 2.2 crore. The company stated that Openplay will continue to register strong growth. The real money gaming segment is looking at consolidation-led scaling as statutory clarity emerges.

Revenue from the freemium segment jumped 28% to Rs 7.4 crore from Rs 5.8 crore. Telco subscription revenue dropped 16% to Rs 15 crore from Rs 17.9 crore.

Commenting on the Q1FY23 performance, Nazara Technologies CEO Manish Agarwal stated, “We are happy to report an all-round growth. The multi-pronged approach to capture opportunities have been yielding positive traction and we are in line with our target growth plans for FY23. The traction across businesses; E-sports and Real Money Gaming witnessed strong growth while the addition of a new growth engine in form of Datawrkz has augmented well for the business. We have also seen stabilisation of unit economics for our Gamified Early Learning business.

"The overall revenue for Q1FY23 as against the previous year saw a healthy growth of 70%, leading to a PAT growth of 22% year on year. On the operating margin front, We have made investments in our business segments that will provide us with robust growth opportunities in the years to come. The company will continue to look for growth opportunities both organically and inorganically. In particular, we are looking to augment presence in Freemium segment, especially in developed markets."

Nazara said that all its businesses remain profitable. It added that investments for long-term growth suppressed the Q1FY23 EBITDA margin for the e-sports business. Nodwin Gaming invested in the growth of its own IP business, while Sportskeeda forayed into new sports (American football and Basketball) in the US.

It also stated that as revenues from media rights, own IPs and the D2C business increase, benefits of operating leverage will kick in, leading to a higher EBITDA margin for the e-sports segment. Price-led stabilisation of unit economics to improve EBITDA margin for Kiddopia in the coming quarters.


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