Nazara Technologies Reports Strong Q1 Results with 31% Rise in Net Profit and 14% Revenue Growth

• ByStartupStory     |    July 29, 2023

Leading gaming company Nazara Technologies has announced its financial results for the quarter ended June, showcasing robust performance with a 31% rise in net profit and a revenue growth of 13.9%. The company’s profit after tax reached Rs 20.9 crore, reflecting a significant increase compared to Rs 15.9 crore in the corresponding period last year.

Revenue from operations stood at Rs 254.4 crore, marking a 13.9% growth from Rs 223.1 crore recorded a year ago.

Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies, expressed optimism about the company’s future prospects, stating, “Our revenue and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) growth is expected to accelerate in the coming quarters due to seasonality and our decision to defer key esports launches to benefit from upcoming opportunities.”

Notably, Nazara’s subsidiary, Sportskeeda, delivered a robust performance, achieving a 52% YoY growth in revenues and 55% in EBITDA. The company’s focus on building a healthy pipeline of M&A opportunities, particularly in gaming IPs and strong teams, further reinforces its growth strategy.

Nazara Technologies operates in three segments, namely gaming, esports, and adtech, with respective contributions of 43%, 46%, and 11% to the company’s overall revenues in the June quarter.

The company highlighted its esports firm, Nodwin Gaming, which announced multiple IPs for the coming months, reflecting its growth potential. Nodwin’s revenue increased to Rs 68.6 crore in the quarter under review from Rs 64.4 crore in Q1 FY23, showcasing its strong performance.

While Nazara’s real-money gaming business faced regulatory challenges, the company remains optimistic about its overall growth prospects. Tamil Nadu’s ban on skill-based games like rummy in April 2023 impacted Q1 FY24 performance, but Nazara is monitoring the situation closely.

The company anticipates further clarity on regulatory matters, which may present consolidation opportunities. Despite these challenges, Nazara Technologies remains steadfast in its commitment to providing innovative gaming experiences and enhancing its market presence.

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