Nazara Technologies reported a consolidated net profit of INR 16.24 Cr in Q2 FY25, down 33% from INR 24.18 Cr in the corresponding quarter last fiscal
The company incurred a loss of INR 1.86 Cr from discontinued operations as against a profit of INR 1.68 Cr in the year-ago quarter
The gaming company’s operating revenue grew 7% to INR 318.94 Cr from INR 297.24 Cr in the year-ago quarter
Gaming major Nazara Technologies
reported a consolidated net profit of INR 16.24 Cr in the September quarter of the ongoing fiscal year (Q2 FY25), down 33% from INR 24.18 Cr in the corresponding quarter last fiscal.
On a sequential basis, profit declined 31% from INR 23.62 Cr.
However, Nazara’s Q2 FY25 net profit also included loss from its discontinued operations. The company incurred a loss of INR 1.86 Cr from discontinued operations as against a profit of INR 1.68 Cr in the year-ago quarter. Excluding this, its profit from continued operations fell 20% to INR 18.10 Cr during the quarter under review from INR 22.50 Cr in Q2 FY24.
Nazara’s operating revenue grew 7% to INR 318.94 Cr from INR 297.24 Cr in the year-ago quarter. It jumped 28% from INR 250.08 Cr in the preceding June quarter.
The company’s EBITDA declined 5% year-on-year (YoY) to INR 31.6 Cr.
Nazara’s revenue from the esports segment rose 6% YoY to INR 181.8 Cr. While gaming brought in INR 114.1 Cr, its Adtech subsidiary raked in a revenue of INR 24.1 Cr, up 7% YoY.
It is pertinent to note that the company made its largest investment when it acquired a 47.7% stake in Pokerbaazi in October. Two weeks ago, Nazara’s Datawrkz also picked up a 100% stake in UK-based growth marketing agency Space & Time for around INR 52.3 Cr in a cash and stock deal.
To support its acquisition heavy approach to drive profits, Nazara also received the approval of its board to raise about INR 900 Cr via preferential equity issue.
Besides announcing its financial health for the quarter, Nazara’s board of directors approved the merger of Paperboat Apps with the company today.
In a statement, Nazara’s joint managing director and CEO Nitish Mittersain said that the company is moving from a “highly decentralised” structure towards “organised decentralisation”.
“A key part of this approach involves creating Centres of Excellence (COEs) in various strategic areas such as data analytics, user acquisition, M&A & AI as well as back office operations such as HR, compliance and finance. We will continue to roll out these initiatives over the next 12 months and believe these will bring significant benefits due to shared knowledge pools and provide opportunities for cost optimisation,” he said.
Where Did Nazara Spend?
The rise in expenses outgrew the increase in revenue. Total expenditure went up 11% year-on-year to INR 321.27 Cr during the quarter under review. Sequentially, it rose 33% from INR 240.95 Cr.
Content, Event and Web Server Expenses: This was the biggest expense for the company, rising 52% to INR 129.52 Cr from INR 84.69 Cr in Q2 FY24
Employee Benefit Expenses: The company spent INR 67.64 Cr on employees, up 38% from INR 48.94 Cr in the year-ago quarter.
Commission Expenses: The spending under the head rose 10% to INR 18.07 Cr during the quarter under review from INR 16.31 Cr.
Ahead of the Q2 results announcement, shares of Nazara ended today’s trading session 2.25% higher at INR 907.50 on the BSE.
By Inc42 Media
Source: Inc42 Media