Nazara Technologies Q3 FY25 Results and Concall : Key Takeaways & Strategy

Nazara Tech Concall: Key Highlights & Future Outlook

Financial Performance

Q3 FY25 Performance

Nazara Technologies achieved its highest-ever quarterly revenue of INR 534.7 crores, reflecting a 67% year-on-year (YoY) growth.

• EBITDA for the quarter stood at INR 52.4 crores, marking a 39% increase.
• Profit After Tax (PAT) from continuing operations was reported at INR 13.7 crores, after accounting for a one-time impairment related to Brand Scale Innovations’ equity investment.

9M FY25 Overview

For the first nine months of FY25:

• Total revenue reached INR 1,103.7 crores.
• EBITDA stood at INR 102.4 crores.
• PAT recorded at INR 55.4 crores.

Business Segment Performance

Gaming Segment

The gaming segment delivered 52.7% revenue growth in Q3 FY25 with an EBITDA margin of 22.2%.

Key revenue contributors:

• PokerBaazi: Recorded 67% YoY growth in gross gaming revenue.
• Kiddopia: Generated INR 47.6 crores in revenue with an EBITDA margin of 25.2%.
• Fusebox: Revenue reached INR 59.4 crores, showing an impressive 132% YoY growth.
• Animal Jam: Witnessed 14% YoY growth, benefiting from strong seasonal performance.

eSports Segment

The eSports division saw a 20.1% revenue growth in Q3 FY25, with an EBITDA margin of 8.4%.

• NODWIN Gaming: Revenue grew 23% YoY, excluding the impact of deconsolidated Wings. Adjusted growth stood at 48%.
• Sportskeeda: Retained a top 10 ranking among US sports news websites, with core business revenue increasing by 21%.

Adtech Segment

• Datawrkz posted 38% YoY revenue growth, with an EBITDA margin of 14.1% in Q3 FY25.

Strategic Moves

Acquisitions & Partnerships

• Acquired popular gaming IPs such as CATS, Crash Arena, TurboStars, and King of Thieves, expected to directly boost revenue.
• Formed strategic partnerships with brands like Barbie and Little Angel through Kiddopia to drive organic user engagement.
• Collaborated with Big Brother and Bigg Boss to introduce interactive story-based gaming in multiple languages.

Capital Infusion

• Successfully raised INR 495 crores through preferential placement to Aksana Estates LLP.
• Funds will be used to support further acquisitions and organic growth initiatives.

Challenges & Opportunities

User Acquisition Costs

• Kiddopia’s cost per trial increased, necessitating improved acquisition strategies.
• Management remains confident in Q4 performance improvements due to recent interventions.

Market Conditions

• Management sees the current funding slowdown as an opportunity to acquire assets at attractive valuations, minimizing risks.
• Strong belief in the Indian gaming market’s potential, emphasizing the need for locally developed games with global appeal.

Future Roadmap

EBITDA Projections

• The company maintains an FY27 EBITDA target of INR 300 crores.
• Confident in achieving targets despite industry challenges.

New Initiatives

• Plans to integrate G-commerce with ONDC, enabling better monetization in Indian gaming.
• A beta game under Animal Jam is set for launch, expected to contribute to revenues next fiscal year.

Management’s Outlook

Nazara Tech‘s leadership remains optimistic about future growth, focusing on strategic acquisitions, partnerships, and an expanding game portfolio. While challenges like rising user acquisition costs exist, the company is well-positioned to capitalize on market opportunities and solidify its global gaming presence.

FAQs

1. What was Nazara Tech’s revenue for Q3 FY25?

Nazara Tech recorded INR 534.7 crores in revenue, marking a 67% YoY growth.

2. Which gaming platforms contributed the most to revenue growth?

Major contributors included PokerBaazi, Kiddopia, Fusebox, and Animal Jam.

3. How is Nazara Tech handling rising user acquisition costs?

The company is working on enhanced user acquisition strategies and expects better performance in Q4.

4. What strategic moves has Nazara made recently?

Nazara has acquired gaming IPs, partnered with entertainment brands, and secured capital infusion for future growth.

5. What is the future revenue outlook for Nazara Tech?

The company aims to achieve INR 300 crores EBITDA by FY27, leveraging new game launches and monetization strategies.

Read More at sharepricenews.com