Nazara’s Q3 FY25 Profit Halves To INR 13.7 Cr

Nazara Bags Shareholders’ Nod To Fetch 48% Stake In Pokerbaazi’s Parent

SUMMARY

Nazara Technologies’ consolidated net profit declined 53.5% to INR 13.7 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 29.5 Cr

On a sequential basis, profit declined 15.4% from INR 16.2 Cr

Operating revenue zoomed 66.8% to INR 534.7 Cr during the quarter INR 320.4 Cr in Q3 FY24

Gaming major Nazara Technologies’ consolidated net profit declined 53.5% to INR 13.7 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 29.5 Cr in the year-ago quarter.

On a sequential basis, profit declined 15.4% from INR 16.2 Cr.

Operating revenue zoomed 66.8% to INR 534.7 Cr during the quarter under review from INR 320.4 Cr in Q3 FY24. On a quarter-on-quarter (QoQ) basis, it increased 67.7% from INR 318.9 Cr.

Notably, this was the company’s highest revenue ever recorded.

The gaming major’s total expenses grew 76.2% to INR 530.9 Cr in Q3 FY25 from INR 301.3 Cr in the year-ago quarter. On a QoQ basis, expenses rose 65.2% from INR 321.3 Cr.

The company earns its revenue from three streams – gaming, esports and adtech. At INR 232.6 Cr, the esports segment generated the highest revenue for the company in Q3. The segment’s EBITDA stood at INR 19.6 Cr during the quarter under review.

The gaming segment’s revenue stood at INR 159.4 Cr, while EBITDA was at INR 34.4 Cr. Meanwhile, the adtech segment generated a revenue of INR 147.9 Cr and its EBITDA stood at INR 7 Cr.

It is pertinent to mention that Nazara has been on a fundraising and acquisition spree over the last year or so. Its major acquisitions include Fusebox Games, Pokerbaazi, Paperboat, STAN, Ninja Global FZCO, Freaks 4U, and Circle of Games.

In a recent interview with Inc42, CEO and joint managing director Nitish Mittersain said that the company will continue to look for inorganic acquisition opportunities for gaming studios and real-money gaming (RMG) platforms in India and abroad.

Notably, the company is looking to raise INR 495 Cr from Axana Estates, Plutus Wealth Management’s Arpit Khandelwal, and CaratLane cofounder Mithun Sacheti. The investors have also launched an open offer to acquire an additional 26% stake in the company.

Nazara’s Major Expenses

Employee Benefit Expenses: Nazara spent INR 88.6 Cr on remuneration and other employee benefits, an increase of 86.5% from INR 47.5 Cr in the year-ago quarter. Sequentially, it grew 31% from INR 67.6 Cr.

Advertising Expenses: The company’s spending under the head surged 71.1% to INR 145.4 Cr from INR 41.1 Cr in FY23.

Content & Server Costs: Its expenses under this head grew 36.3% to INR 168.8 Cr from INR 123.8 Cr. Sequentially it grew 30.3% from INR 129.5 Cr.

Shares of Nazara ended Thursday’s (February 13) trading session 0.61% higher at INR 929.15 on the BSE.