MPL's parent M-League turns operating cash flow positive with Rs 157 Cr in FY24

Despite regulatory challenges, M-League, the parent company of Mobile Premier League (MPL), has managed double-digit year-on-year growth in the fiscal year ending March 2024. Notably, the Bengaluru-based company also crossed the Rs 1,000 crore revenue mark in FY24.

MPL’s revenue from operations grew 22.2% to Rs 1,068 crore ($127.9 million) during FY24 as compared to Rs 873.7 crore ($104.63 million) in FY23, according to the company’s consolidated financial statements filed by its group company, M-League Ltd in Singapore.

Mobile Premier League operates an online gaming platform offering categories such as fantasy sports, adventure, action, and others. The firm was also engaged in the sale of sporting merchandise, however, it ceased the vertical during the year ended March 2023 (FY23).

MPL made 99% of its revenue from online gaming while the remaining income came from advertisement and other operating activities. Including non-operating income, the company’s overall revenue surged to Rs 1,085.17 crore or $130 million during the last fiscal year.

To check complete Revenue Breakdown visit thekredible.comView full data

The subsidiaries of MPL are incorporated in India, Indonesia, Germany, Singapore, and the United States of America. All these entities are owned by the group company — M-League Ltd in Singapore.

Geographically, India remains the largest market for MPL contributing 69% to the total revenue followed by Europe, the United States of America, and Nigeria with 27.9%, 2.6%, and 0.5%, respectively in FY24. Importantly, MPL didn’t generate any revenue in Singapore during the last fiscal year which formed 3.5% of the total revenue in FY23.

In terms of geographical revenue growth, collection from the Indian market grew 35.2% to Rs 737.1 crore followed by Europe with 11.8% growth to Rs 298.10 crore in FY24. Revenue from the United States of America slipped 11.7% to Rs 27.81 crore. Meanwhile, Nigeria, which had zero revenue last year, generated Rs 5 crore revenue.

On the expense side, advertising and promotional costs were the largest cost center forming 31.8% of the total expenses. This cost went up 6.8% to Rs 442.97 crore in FY24. Following the layoffs of 350 employees in August 2023, employee benefit expenses shrank 28% to Rs 429.53 crore. This cost also includes ESOP costs worth Rs 121.4 crore in FY24.

Other major expenses such as hosting & IT support services, payment gateway, royalty, and licensing fees also contributed significantly to the total expenses. The company’s overall expenditure increased 2% to Rs 1,393.2 crore during the year from Rs 1,365.7 crore in FY23.

To check complete Expenses Breakdown visit thekredible.comView full data

Despite controlled cash burn, the company’s losses inclined 21.2% to Rs 374.9 crore ($44.9 million) which can be attributed to the fair value loss on financial instruments worth Rs 92.93 crore. Excluding this fair value loss, the company’s adjusted loss stands at Rs 282 crore.

The operational efficiency of the company can also be witnessed from operating cash flows which turned positive to Rs 157 crore in the last fiscal year against Rs -531.8 crore in FY23. Its EBITDA margin and ROCE stood at -21.39% and -32.88%, respectively. On a unit level, MPL spent Rs 1.3 to earn a rupee of operating revenue in FY24.

Amid GST regulations and other legal challenges, the firm also shut down its web3 fantasy platform Striker in December.

As per TheKredible, MPL has raised $395 million in funding to date from investors including Peak XV Partners, SIG Global, GV Games, RTP Global, Moore, and Beenext. It was valued at around $2.3 billion following the Series E funding in September 2021.