Nazara Tech net profit climbs 53% to Rs 24.2Cr in Q2FY24; Know the revenue

Mumbai-based diversified gaming and sports media platform Nazara Technologies has witnessed a 53.3% surge in its consolidated net profit, reaching Rs 24.2 crore, compared to Rs 15.8 crore in the same quarter of the previous year.

Nazara attributed this growth to a 13% rise in revenue, which amounted to Rs 297.2 crore. Additionally, Its EBITDA also saw a 30% increase, standing at Rs 27.9 crore, with margins expanding by 130 basis points to 9.4%.

Half-yearly financial highlights

The first half of the financial year also reflected positive outcomes, with a 13% revenue increase to Rs 551.7 crore and a 19% EBITDA increase to Rs 61.0 crore.

The EBITDA margin rose to 11.1%, and the profit after tax (PAT) grew by 42% to Rs 45.0 crore. Nazara's cash position strengthened significantly, boasting a proforma cash balance of Rs 1,339.2 crore after recent fundraising, the company said in a release.

Recently, the company also raised Rs 510 crore from notable investors, including Zerodha co-founder Nikhil Kamath and SBI Mutual Fund.

Esports drove Nazara's growth with a 26% revenue boost this quarter, while gaming, including NODWIN and SportsKeeda, rose by 13.8%. Adtech, however, saw revenues dip by 36.5%.

Founded in 1999 by Nitish Mittersain, Nazara Technologies is an Indian gaming and media company that offers interactive gaming, e-sports, adtech, and gamified early learning for users across India, Africa, and North America.

Nazara's operational expenses rose by 9.7%, with content, event, and web server expenses being the largest expenditure.

The company also granted 9,000 employee stock options (ESOPs) under the Nazara Technologies Employee Stock Option Scheme 2023, with an exercise price of Rs 833.35 per option. Despite the rise in certain expenses, Nazara managed to reduce its advertising and business promotion costs significantly.