Gaming firm Nazara Technologies posts 31% jump in quarterly profit at Rs 20.9 crore

The firm had posted a profit of Rs 15.9 crore in the same period last year. Revenues for the first quarter of FY24 were at Rs 254.4 crore, jumping 14% from a year ago.

Founder and managing director Nitish Mittersain attributed the jump in profits to some of its companies’ businesses such as Sportskeeda having grown well with better margins.

The firm said its Earnings Before Interest, Taxes, Depreciation, and Amortization (Ebitda) had grown 10% year-on-year to Rs 33.1 crore.

“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,” Mittersain said in a statement.

Nodwin Gaming, a subsidiary in which Nazara Technologies owns 52.7%, registered revenues of Rs 68 crore in the quarter, up 7%, Mittersain told ETtech. Kiddopia, another acquisition of Nazara’s, reported revenues of Rs 57 crore, up 10%. Sportskeeda on the other hand reported Rs 45 crore in revenue.

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The company’s esports business unit – which includes Nodwin and Sportskeeda – is currently profitable and registered Rs 10 crore in Ebitda, Mittersain added.Currently, 60% of the company’s revenues are hosted internationally, while the remaining 40% is based in India. About 45% of the overall business is housed solely out of the United States market. This includes Kiddopia, casual game developer Wildworks and adtech business Dataworks.

The company also operates in the real world gaming (RMG) space through OpenPlay Technologies but currently it forms only 4.7% of its total quarterly revenue base currently, Mittersain added.

Going forward, the company targets to increase Nodwin Gaming’s contribution to overall revenues from about 27% to about 35% over the coming quarters, Mittersaid said in the interaction.

Nazara’s gaming accessories business – Absolute Sports – is likely to expand over the quarter ended September 2023, he added, in expectation of the festive season sales then.