Nazara Technologies Achieves INR 1,000 Cr Revenue Milestone in FY23, Reports 21% YoY Profit Growth

• ByStartupStory     |    May 10, 2023

Nazara Technologies, a gaming unicorn, has reported a 21% YoY increase in consolidated net profit to INR 61.4 Cr in FY23 from INR 50.7 Cr in FY22. Its revenue from operations surged by 75% to INR 1,091 Cr in the same period, driven by strong growth across all three segments. The gaming segment saw a 28% YoY rise in revenue, while the esports and adtech verticals witnessed a 75% and 53% increase in revenue, respectively.

In FY23, Nazara Technologies’ esports vertical made up almost half of its total revenue, while the gaming segment accounted for 37%. The company’s top revenue-generating region was North America, contributing 41% of the total revenue, followed by India at 40%.

 Kiddopia, the company’s gamified early learning platform, recorded a marginal increase in average revenue per user (ARPU) to INR $6.8 in Q4 FY23 from INR $6.7 in the same period last year. The platform also saw a 0.9% YoY growth in subscribers, with 3.11 Lakh subscribers as of March 2023.

Kiddopia’s revenue increased by 8% YoY to reach INR 220.6 Cr in FY23, up from INR 204.4 Cr in the previous year. Nodwin Gaming’s revenue from the esports vertical surged by 84% YoY to INR 388.7 Cr, while SportsKeeda, the sports news and publishing platform, reported a 55% YoY growth in revenue to INR 122 Cr. The company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 16% to INR 109.7 Cr in FY23, up from INR 94.6 Cr in FY22.

During the year under review, Nazara Technologies’ total expenditure surged by 82% YoY to reach INR 1,051.7 Cr, up from INR 575.4 Cr in FY22. The largest expense was related to “content, event and web server,” accounting for INR 396.7 Cr in FY23, nearly tripling from INR 139.6 Cr in the previous year. The company’s ad spend also increased by 18% to almost INR 240 Cr, while employee benefit expenses rose by 61% to INR 149 Cr.

Nazara Technologies’ CEO, Nitish Mittersain, “attributed the company’s strong performance in FY23, with revenue exceeding INR 1,000 Cr at INR 1,091 Cr and EBITDA surpassing INR 100 Cr at INR 109.7 Cr, to the hard work and dedication of its team and strategic investments in high-growth segments”.

In the quarter ended March 2023, the company’s net profit increased to INR 9.4 Cr from INR 4.9 Cr in Q4 FY22. However, profits declined on a quarter-on-quarter (QoQ) basis, dropping from INR 20.1 Cr in Q3 FY23.

In Q4 FY23, revenue from operations for Nazara Technologies soared by more than 65% YoY to reach INR 289.3 Cr, up from INR 175.1 Cr in the same quarter of the previous year. Nevertheless, there was a 30% decline from INR 314.8 Cr in the previous quarter of December 2022.

Nazara Technologies has announced that it will acquire an extra 19.5% stake in mobile gaming firm Nextwave Multimedia for INR 15 Cr, alongside its recent financial statement. As a result, Nazara’s existing 52.38% stake in the Chennai-based company will increase to 71.88%. Notably, Nextwave is the owner of the intellectual property (IP) rights for Nazara’s popular ‘World Cricket Championship’ game.

Nazara Technologies has stated that “the acquisition of an additional 19.5% stake in Nextwave Multimedia for INR 15 Cr will bolster its offerings in the virtual interactive sports genre across India and other emerging markets, according to a statement by the company”. 

The acquisition aligns with Nazara’s growth objectives and desire to consolidate its shareholding in Nextwave. The gaming unicorn’s shares rose 4.14% to close at INR 589.25 on the Bombay Stock Exchange on Tuesday (May 9). The company declared its financial results after market hours.

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