Nazara posts Rs 250 Cr revenue in Q1 FY25, profit spike 38%

Gaming and sports media company Nazara Technologies operating revenue has decreased marginally in Q1 FY25. However, the firm managed to grow its profit by over 38% majorly due to low deferred tax.

Nazara’s operating revenue fell 6.06% to Rs 250 crore in Q1 FY25 from Rs 266.2 crore in Q4 FY24, its unaudited consolidated financial statements sourced from National Stock Exchange (NSE) show.

e-sports formed 52.73% of the company’s total operating revenue whereas the gaming segment had a share of 37.11% followed by ad tech which accounted for 10.26% of the topline.

Nazara also made Rs 25.57 crore via interest and gains on financial assets during the quarter which pushed its overall revenue to Rs 275.65 crore.

The company reduced its total expenses by 15.44%, bringing them down to Rs 241 crore in Q1 FY25 from Rs 285 crore in Q4 FY24. Content, events, and web servers collectively contributed 35.17% to the total expenses, while employee benefits and marketing accounted for 21.28% and 17% of the total costs, respectively.

Nazara’s fall in expenses led to a 38.53% spike in profit which stood at Rs 23.62 crore in Q1 FY25 against Rs 17 crore in Q4 FY24.

With more than a dozen brands under its portfolio, Nazara Technologies is on an acquisition spree. As per TheKredible, the company has acquired 14 startups to date, with 4 deals concluded in the last two months including Fusebox Games, Kiddopia’s developer Paper Boat Apps, IP rights of Ultimate Teen Patti and assets of DeltiasGaming.

Nazara has seen significant success in its ‘acquire and scale’ strategy over the last few years and plans to invest $100 million for mergers and acquisitions in the coming two years.

Nazara also made headlines last month when Openplay Technologies and Halaplay Technologies, the two subsidiaries of the gaming firm, received notice from the Goods and Services (GST) department to pay nearly Rs 1,120 crore in retrospective taxes for the period of FY18 to FY23.

Nazara made its entry into the public market in March 2021 at Rs 1,990 per share and achieved an all-time high of over Rs 2,600 in October 2021. The company also went for a stock split in June 2024 at a 2:1 ratio. Its current share price stands at around Rs 932.15 with a market cap of Rs 7,130 crore or $$850 million, as of Aug 14, 2024 (IST 1:00 PM).