Gaming and Sports Media Platform Nazara Reports Shows Flat Growth In FY24, Profit Surges by 23%

Nazara FY24

Three points you will get to know in this article:

  • 62% rise in non-operating income boosted net profit by 23% to ₹75 crore.
  • E-sports led with 55.5% of revenue, up 19% to ₹632 crore.
  • The company maintained healthy financial metrics despite higher spending.

Introduction Nazara

Nazara Logo

Nazara Technologies is an Indian gaming and sports media platform that has evolved from a college student’s gaming portal in 1999 to become India’s only listed games company and a multi-million dollar diversified gaming and sports media platform. Led by founders Nitesh and Vikash Mittersain, Nazara has survived the ups and downs of the tech industry, riding the waves of various dotcom booms and busts, global recessions, and the explosion in smartphone usage. The company operates in segments like freemium gaming, real money gaming, esports, sports media, and adtech through subsidiaries like Nodwin Gaming, Sportskeeda, Datawrkz, and Kiddopia, focusing on organic growth as well as strategic partnerships and acquisitions to expand its ecosystem in India.

Nazara Revenue Growth and Performance

Nazara Technologies Limited, a gaming and sports media firm, experienced a modest revenue growth of 4.3% in the fiscal year ending March 2024. Despite this, a significant 62% rise in non-operating income contributed to a notable improvement in the company’s net earnings. According to its consolidated financial statements filed with the National Stock Exchange, Nazara’s operational revenue climbed by 4.3%, reaching Rs 1,138 crore in FY24, up from Rs 1,091 crore in FY23.

The firm’s revenue dropped sequentially by 17%, falling to Rs 266 crore in Q4 FY24 from Rs 320 crore in Q3 FY24. E-sports income accounted for 55.5% of total operating revenue, rising 19% to Rs 632 crore in FY24. Meanwhile, revenue from gaming and adtech reached Rs 406 crore and Rs 100 crore, respectively.

Income and Expenses of Nazara

The company generated an additional Rs 80 crore from interest and gains on financial assets, bringing its total revenue to Rs 1,218 crore in FY24, up from Rs 1,140 crore in FY23. Content and server expenses emerged as Nazara’s largest cost center, comprising 35% of the total expenditure. These costs remained steady at Rs 390 crore in FY24.

In the fiscal year 2024, Nazara witnessed an increase in its total expenditure, reaching Rs 1112 crore compared to Rs 1052 crore in FY23, attributable to various factors such as employee benefits, advertising, material costs, commissions, and other operational expenses.

Profitability and Efficiency of Nazara

Despite maintaining a steady scale, Nazara managed to achieve a 23% rise in profit, totaling Rs 75 crore in FY24, up from Rs 61 crore in FY23. This growth was facilitated by disciplined cost management and an uptick in other sources of income. Notably, the company maintained a 5% return on capital employed (ROCE) and a 14.5% EBITDA margin. Moreover, at a unit level, Nazara spent Rs 0.98 to generate one rupee of revenue during FY24.

Despite a modest 4.3% revenue growth, Nazara Technologies, a leading gaming and sports media firm, reported a notable 23% rise in net profit for the fiscal year 2024. This was driven by a 62% surge in non-operating income and disciplined cost management. The company’s e-sports segment emerged as the top revenue contributor, accounting for 55.5% of total operating revenue. While content and server expenses remained Nazara’s largest cost center, the firm maintained a healthy 14.5% EBITDA margin and 5% return on capital employed. Overall, Nazara demonstrated resilience in navigating the challenging market conditions to deliver improved financial performance.

Karan Balodi

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