Nazara Technologies’ FY24 Profit Rises 21.8% Despite Q4 Earnings Plunge

Nazara Technologies, a leading gaming and entertainment company, reported a robust 21.8% increase in its profit after tax (PAT) for the fiscal year 2024, reaching Rs 74.8 crore compared to Rs 61.4 crore in FY23. Despite this annual growth, the company faced a significant decline in its quarterly profits, which plummeted by 97.8% year-on-year to Rs 0.20 crore in Q4 FY24, down from Rs 9.4 crore in the same quarter of the previous fiscal year.

For the year ending March 31, 2024, Nazara’s operating revenue saw a modest rise of 4.3%, amounting to Rs 1,138.3 crore, up from Rs 1,091 crore in FY23. However, the company’s performance in the January-March quarter showed a downturn with an 8.1% decrease in operating revenue, which fell to Rs 266.2 crore year-on-year.

Nazara’s revenue is primarily driven by three core segments: gaming, esports, and adtech. The gaming segment alone contributed Rs 406.5 crore in FY24, with nearly half of this revenue generated by Kiddopia, a subscription-based gamified early learning app boasting over 5 million downloads on Google Play. The esports category emerged as the company’s largest revenue generator, bringing in Rs 631.7 crore during the fiscal year.

Despite a 2.9% rise in expenses to Rs 1,010.4 crore in FY24 from Rs 981.2 crore in the previous year, Nazara successfully reduced its advertising and promotional expenditure by 26%, totaling Rs 177.5 crore. In the fourth quarter of FY24, the company managed to cut total expenses by 9.4% to Rs 237 crore, down from Rs 261.6 crore in Q4 FY23.

In a strategic move to bolster its financial standing, Nazara raised Rs 950 crore, the largest fundraise in its history, from strategic and financial investors. These funds are earmarked for mergers and acquisitions (M&A) and other growth initiatives. Additionally, the company acquired ComicCon India, a popular gaming and entertainment convention, for Rs 55 crore.

Founded in 1999, Nazara Technologies has established itself as a diversified gaming and sports media platform, offering a wide range of services including mobile gaming, esports organization, and digital advertising technology. The company is supported by notable investors, including the late billionaire Rakesh Jhunjhunwala and Zerodha co-founder Nikhil Kamath.