Indian gaming startup Gameskraft has reported a substantial profit of Rs 1,061.86 crore in FY23. The profit growth comes at a time when the Indian gaming industry is grappling with regulatory challenges.
This marks a 14.1% increase from the previous year's profit of Rs 930.5 crore. Its revenue from operations also rose by 24.8%, reaching Rs 2,662.51 crore in FY23, up from Rs 2,133.1 crore in FY22.
The primary sources of revenue for Gameskraft included subscriptions, platform fees, and game downloads. Total expenses for the company shot up in FY23, with the company spending Rs 1,300.72 crore compared to Rs 892 crore in the previous year.
Gameskraft spent significantly on marketing and business promotions, totalling Rs 408.6 crore on marketing and Rs 208 crore on business promotions in FY23. Employee benefit expenses also saw an 80% increase, reaching Rs 374.9 crore.
It's worth mentioning like every other skill-based gaming company, Gameskraft is also navigating regulatory challenges, including a recent 28% GST imposition on real-money gaming. The company also faced allegations of evading GST of Rs 21,000 crore, a claim that was temporarily quashed by the Karnataka High Court but later stayed by the Supreme Court.
The online gaming industry is adapting to the new GST regime, with several companies, including Mobile Premier League and Spartan Poker, announcing layoffs. Despite these challenges, Gameskraft grew its revenue and profits, even discontinuing its fantasy sports offering, Gamezy.
With the online gaming industry under close scrutiny, the Internet and Mobile Association of India (IAMAI) is hosting an online gaming conference. The event will include discussions on the sector's future, especially in light of the ongoing legal and regulatory developments.
The industry is also focusing on self-regulation to ensure compliance with laws and promote responsible growth, including certifying games as skill-based and maintaining transparency to distinguish them from gambling.
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