Nazara Tech's Q3FY25 profit declines 54% to Rs 13.7 crore, but revenue rises 67%

Nazara Technologies Ltd., a Mumbai-based gaming and sports media company, has announced its highest-ever quarterly EBITDA of Rs 52.4 crore for the third quarter of the 2024-25 financial year. 

The company’s operating revenue reached a record Rs 535 crore, marking a 67% year-on-year increase compared to the same period last year. However, net profit declined by 53.6%, dropping to Rs 13.7 crore from Rs 29.5 crore in Q3 FY24.

Record revenues

Nazara’s total revenue for the quarter stood at Rs 556.6 crore when including Rs 22 crore earned from interest and gains on financial assets. 

These record numbers have been attributed to strong performance across the company’s key segments and successful acquisitions in recent months.

E-sports made up the largest share of revenue at around Rs 232.6 crore, accounting for 43.5% of the total, while the gaming segment contributed Rs 155 crore and ad tech added Rs 10.5 crore.

Segment performance and acquisitions

The company’s core Gaming segment witnessed a 53% revenue growth, helped by recent strategic acquisitions such as Fusebox Games and strong performances from titles like Animal Jam.

Nazara also acquired popular IPs CATS: Crash Arena Turbo Stars and King of Thieves, which will now be operated and published in-house. 

Partnerships with notable entertainment brands, including Mattel’s Barbie and Moonbug’s Little Angel, aim to boost engagement among younger audiences. Tie-ups with reality show franchises like Big Brother and Bigg Boss are also expected to broaden Nazara’s player base.

Expenses and profit dip

Despite the surge in operating revenue, total expenses rose by 76% to Rs 531 crore from Rs 301 crore in Q3 FY24. This increase was driven by a rise in costs related to content, events, web servers, and employee benefits. 

Marketing expenses jumped sharply to Rs 145 crore, compared to Rs 41 crore in the same period last year. While EBITDA grew significantly, the company’s net profit dropped to Rs 13.7 crore, reflecting higher overall costs and investments in new initiatives.

Fundraising boost

Nazara has also secured Rs 495 crore through a preferential equity issue to Axana Estates LLP, led by Arpit Khandelwal and Mithun Sacheti. 

The fresh capital, along with Nazara’s existing reserves, is expected to provide the company with enough financial flexibility to pursue more acquisitions and expand its operations organically.

Nitish Mittersain, joint managing director and chief executive officer of Nazara Technologies, said the quarterly performance reflects the company’s commitment to innovation and expansion. He added that Nazara’s growing ecosystem, global partnerships, and focus on acquisitions position it well to become a global gaming leader from India.

In the coming quarters, Nazara plans to strengthen its presence in new markets, optimize operational efficiencies, and enhance user engagement through fresh content and IP integrations.