Nazara Technologies profit reduces by 17% to Rs 14.8 crore in December quarter

Nazara Technologies, the gaming and sports media platform, has posted a decline of 17% in consolidated profit after tax to Rs 14.8 crore in the third quarter that ended on December 31, 2021. In the corresponding quarter of 2020, the company had reported Rs 17.9 crore consolidated PAT. 

The company’s consolidated revenue from operations during Q3 2021 grew by 42.48% to Rs 185.8 crore YoY from Rs 130.4 crore.

For the nine months ended December 31, 2021, Nazara Technologies delivered a PAT of Rs 42.8 crore, a growth of 355% YoY and a PAT margin of 9.6%. For the nine months ended December 31, 2021, the gaming company’s revenue from operations also increased 35% to Rs 446.6 crore in Q3 2021, from Rs 330.8 crore YoY). 

Esports segment has demonstrated 75% growth in revenue as well as 71% growth in EBITDA in the first 9MFY22 and has continued the YoY revenue growth momentum witnessed in FY 20-21 (102% growth over FY20). Esports has witnessed 70% revenue CAGR over the past 3 years. This segment now contributes the highest revenue in the Nazara portfolio with a 48% contribution in 9MFY22 revenue vs 37% in 9MFY21.

Gamified early learning grew by 22% in 9MFY22 over 9MFY21 and added a net positive paying subscriber base in Q3. Skill-based Real Money Gaming grew by 53% in 9MFY22 over 9MFY21 and delivered break-even EBITDA in Q3 as against losses in previous quarters.

Manish Agarwal, Group CEO, Nazara Technologies, said, “Overall, we are pleased with our growth in strategic areas of focus while maintaining healthy profitability and cash flows. We have witnessed 75% YoY growth in the esports segment for 9MFY22 led by strong growth in revenue across all sub-segments in Nodwin and SportsKeeda. The addition of original IPs such as NH7 Weekender and expansion of our esports business into the Middle East via our acquisition of Publishme has further accelerated the growth momentum.” 

He further said, “Nazara’s strategy of having a diversified portfolio across business segments in gaming continues to provide us with a stable and strong platform on which we can continue to build future growth and success. Nazara continues to remain committed to building multiple growth levers across gamified learning, freemium, esports and skill-based real money gaming via growth in its current portfolio and the addition of more offerings in the ‘Friends of Nazara’ network through strategic M&A.” 

Recently, Nazara Technologies acquired a 55% stake in programmatic advertising and monetisation company Datawrkz for about Rs 124 crore. Last year, the company acquired a 10% stake in the digital content IP media network Rusk Media. In 2021, it had also acquired the gaming and adjacent IP businesses of OML Entertainment, including the IP of the Bacardi NH7 Weekender music festival.

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