Mumbai-based diversified gaming and sports media platform Nazara Technologies has announced its financial results for the third quarter of the fiscal year 2024. The company reported a significant 47% increase in net profit to Rs 29.5 crore.
It also reported its highest-ever quarterly revenue of Rs 320.4 crore, marking a 2% growth compared to the same period last year.
“We saw healthy growth in Animal Jam and Sportskeeda resulting in our EBITDA increase by 24% yearon-year and our EBITDA margin increasing from 9.7% in Q3FY23 to 11.8% in Q3FY24, with our esports segment witnessing a remarkable 79% EBITDA growth." said Nitish Mittersain, Founder, CEO & Jt MD of Nazara Technologies.
Segment wise growth
The company's performance is attributed to the healthy growth in key segments like Animal Jam and Sportskeeda, which led to a 24% increase in EBITDA year-on-year.
Nazara's strategic acquisitions, including WildWorks, the creator of Animal Jam, and a 67% stake in Sportskeeda, have been pivotal in driving this growth.
The esports segment, in particular, witnessed a remarkable 79% EBITDA growth, underscoring the success of Nazara's acquisition-led growth strategy.
Diverse revenue streams
Nazara's revenue streams are diverse, with the esports division, including Nodwin and Sportskeeda, contributing 55% to the overall revenue.
The gaming division, housing edtech products like Kiddopia and Animal Farm, along with real money gaming firm Openplay, accounted for 36% of the revenues.
The remaining 9% came from the advertising tech business. Geographically, 46% of the revenue originated from India, while North America contributed 38%.
Focusing on expansion
With this, Nazara Technologies is focused on strategic expansion. Notably, the company raised Rs 760 crore through a preferential placement to marquee investors. The company's proforma cash balance stands at approximately Rs 1,500 crore, including recent fundraises.
CEO highlights growth after acquiring global gaming IPs
"Our approach of acquiring global gaming IPs and leveraging focused user acquisition alongside data-driven product innovation is beginning to pay off, as demonstrated by Animal Jam's performance in Q3. We are optimistic this strategy will enable substantial scale-up opportunities we can replicate in the future," Nitish Mittersain said.
He said the company's Publishing division has hit the ground running, with its inaugural set of games going live soon. "This March, we're proud to lead the Indian delegation at GDC San Francisco, the world's premier gaming conference, and co-host the first ever "India pavilion" marking a significant milestone for us and the Indian gaming community," he added.
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