Nazara Tech Crosses INR 1,000 Cr Revenue Mark In FY23, Profit Up 21% YoY

Gaming unicorn Nazara Technologies’ consolidated net profit rose 21% year-on-year (YoY) to INR 61.4 Cr in the fiscal year 2022-23 (FY23) from INR 50.7 Cr in FY22. 

Revenue from operations zoomed 75% to INR 1,091 Cr during the year under review from INR 621.7 Cr in the year ended March 2022 on the back of a broad-based growth across all three segments. While gaming revenue grew 28% YoY, esports and adtech verticals saw 75% and 53% rise in revenue, respectively.

The esports vertical contributed nearly half of Nazara’s revenue, while gaming accounted for 37% of the company’s total revenue in FY23. North America churned the biggest chunk of revenue for the unicorn at 41% in FY23, while India was at the second spot with 40% revenue share. 

Gamified early learning platform Kiddopia reported an average revenue per user (ARPU) of INR $6.8 in Q4 FY23, up marginally from INR $6.7 reported in the same period last year. Number of subscribers also rose 0.9% YoY to 3.11 Lakh at the end of March 2023

Overall, revenue from Kiddopia inched up 8% to INR 220.6 Cr during the year under review from INR 204.4 Cr in FY22. While revenue from esports vertical Nodwin Gaming jumped 84% YoY to INR 388.7 Cr in the year under review, sports news and publishing platform SportsKeeda saw a 55% YoY revenue growth to INR 122 Cr.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose 16% to INR 109.7 Cr in FY23 from INR 94.6 Cr in FY22.

Meanwhile, total expenditure zoomed 82% YoY to INR 1,051.7 Cr in the year under review from INR 575.4 Cr. Costs related to ‘content, event and web server’ accounted for the biggest chunk of expenses at INR 396.7 Cr in the year ended March 2023, nearly tripling from INR 139.6 Cr reported in FY22. 

Nazara’s ad spend also grew 18% to nearly INR 240 Cr, while employee benefit expenses surged 61% to INR 149 Cr. 

“… Our strong performance in FY23 with revenue surpassing INR 1,000 Cr at INR 1,091 Cr and EBITDA crossing INR 100 Cr, standing at INR 109.7 Cr is a testament to the hard work and dedication of our team, as well as our strategic investments in high-growth segments,” said Nazara cofounder, CEO and joint managing director Nitish Mittersain.

Meanwhile, the company’s net profit for the quarter ended March 2023 rose to INR 9.4 Cr from INR 4.9 Cr in Q4 FY22. However, profit declined on a quarter-on-quarter (QoQ) basis from INR 20.1 Cr in Q3 FY23.

Revenue from operations surged over 65% to INR 289.3 Cr in Q4 FY23 from INR 175.1 Cr in the year-ago quarter. However, it declined 30% from INR 314.8 Cr in December 2022 quarter.

Alongside its financial statement, the gaming unicorn also announced that it would acquire an additional 19.5% stake in Chennai-based mobile gaming company Nextwave Multimedia for INR 15 Cr. The deal will increase Nazara’s stake in Nextwave to 71.88% from existing 52.38%. 

Interestingly, the Chennai-based company owns the intellectual property (IP) rights for Nazara’s flagship ‘World Cricket Championship’ game. 

“The said acquisition shall help the company in strengthening its portfolio of offerings in the virtual interactive sports genre in India and other emerging markets. Further, the said acquisition is also in line with the growth objective of the company and with a view to consolidate its shareholding in Nextwave,” said Nazara in a statement

Shares of Nazara Technologies ended 4.14% higher at INR 589.25 on the BSE on Tuesday (May 9). The company declared its financial results after market hours.