Nazara Technologies Posts 31% Increase In Net Profit In Q1 FY24


Gaming firm Nazara Technologies reported a 31 per cent year over year increase in net profit for the first quarter of FY23-24, reaching Rs 20.9 crore compared to Rs 15.9 crore in Q1 of FY22-23.

Revenue also saw a 14 per cent rise, reaching Rs 254.4 crore from Rs 223.1 crore in the previous corresponding quarter. The EBITDA increased by 10 per cent to Rs 33.1 crore.

Nitish Mittersain, Founder, CEO, and Joint MD of Nazara Technologies, stated that they expect revenue and EBITDA growth to accelerate in the coming quarters due to seasonality and the strategic decision to defer key esports launches to leverage upcoming opportunities.

Mittersain also mentioned that the sports media platform Sportskeeda, in which Nazara holds a 67 per cent stake, continues to perform strongly with 52 per cent YoY growth in revenues and 55 per cent in EBITDA.

Regarding the company’s recent move to raise Rs 750 crore through equity shares and equity-linked instruments, Nazara clarified that the funds would be used to build a pipeline of M&A opportunities across segments, focusing on adding IPs and strong teams to its platform.

This comes as the first instance of fundraising activities since the company’s IPO in 2021. Addressing the GST council’s decision to impose a 28 per cent GST on online gaming, horse racing, and casinos, Mittersain stated that the impact on their overall financial performance would be minimal. He pointed out that the contribution of skill-based real money gaming business is limited to 4.7 per cent of their revenue and 0.5 per cent of their EBITDA in Q1FY24.

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