Nazara said it incurred INR 11.37 Cr charges due to goodwill impairments, and INR 10.56 Cr for intangible assets related to gaming segment during Q4
The company’s profit from continued operations was at INR 17.1 Cr for the quarter, as compared to INR 11.9 Cr in Q4FY23
Total expenditure declined 9.4% to INR 237 Cr in Q4 FY24 against INR 261.6 Cr in the year-ago period
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Gaming major Nazara Technologies’ consolidated net profit declined 98% to INR 18 Lakh in the fourth quarter of the financial year 2023-24 (FY24) from INR 9.4 Cr in the year-ago quarter.
Sequentially, the company’s profit also saw a huge decline from INR 29.5 Cr in Q3 FY24.
Nazara said it incurred INR 11.37 Cr charges due to goodwill impairments, and INR 10.56 Cr for intangible assets related to gaming segment during Q4.
The company’s profit from continued operations was at INR 17.1 Cr for the quarter, as compared to INR 11.9 Cr in Q4FY23.
In addition, operating revenue declined 8% year-on-year (YoY) to INR 266.2 Cr in Q4 FY24 from INR 289.3 Cr in the same quarter a year ago.
This was a 17% decrease sequentially from INR 320.4 Cr.
The company’s gaming vertical saw contraction as its revenue declined 17% YoY to INR 91.03 Cr in the quarter ended March 2024.
Adtech vertical also saw degrowth as revenue declined 29% YoY to INR 7.49 Cr in Q4 FY24.
Meanwhile, the esports vertical saw a growth with a revenue of INR 148.17 Cr, up 6% YoY. However, on a sequential basis it fell 23% from INR 193.7 Cr in Q3FY24.
For the full financial year 2024, Nazara reported a net profit of INR 74.75 Cr, marking a 21.8% increase from INR 61.4 Cr in FY23.
Profit from continuing operations saw a significant rise of 41.2%, reaching INR 89.5 Cr in FY24 compared to INR 63.4 Cr in the previous fiscal year.
“Key initiatives from FY24 are set to yield results in the coming year, including our new publishing platform, new game launches through existing studios, IP partnerships, and a strong M&A pipeline,” said Nitish Mittersain, founder, CEO and joint MD of Nazara Technologies.
“We are optimistic about FY25, expecting accelerated growth in both revenue and EBITDA. With substantial cash reserves and a robust M&A pipeline, we are well positioned to seize further growth opportunities and enhance our growth trajectory through strategic M&A over the next 12 months,” Mittersain added.
Zooming Into Nazara’s Expenses
Total expenditure declined 9.4% to INR 237 Cr in Q4 FY24 against INR 261.6 Cr in the year-ago period.
Of this, content and server expenses accounted for the biggest chunk of expenses at INR 105.8 Cr in the quarter under review, down nearly 15% YoY.
Employee benefit expenses were the second biggest cost at INR 44.21 Cr in Q4 FY24 as against INR 42.61 Cr in Q2 FY24.
Meanwhile, advertising and marketing expenses declined 8% YoY to INR 43.29 Cr in the period under review.
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