Nazara Technologies' Q3 FY24 net profit rose 47%; posts highest-ever quarterly revenue

Mobile games and e-sports publisher Nazara Technologies' net profit rose 47% year-on-year (YoY) to Rs 29.5 crore in Q3 FY24. The company had posted a net profit of Rs 20.1 crore in the corresponding quarter last year.

Also, Nazara reported its highest-ever quarterly revenue from operations at Rs 320.4 crore in Q3 FY24, up 2% compared to Rs 314.8 crore in Q3 FY23, the company said in a filing.

In the first nine months of FY24, the Mumbai-based company made Rs 872.1 crore in revenue, where more than half of the income was generated from e-sports and 36% from gaming.

“We saw healthy growth in Animal Jam and Sportskeeda resulting in our EBITDA increase by 24% year-on-year and our EBITDA margin increasing from 9.7% in Q3 FY23 to 11.8% in Q3 FY24, with our e-sports segment witnessing a remarkable 79% EBITDA growth," Nitish Mittersain, Founder, CEO, and Joint MD of Nazara Technologies, said.

In August 2022, it acquired WildWorks, the company behind Animal Jam, in an all-cash transaction. Similarly, in 2019, it had acquired a 67% stake in Sportskeeda.

"Our approach of acquiring global gaming IPs and leveraging focused user acquisition alongside data-driven product innovation is beginning to pay off, as demonstrated by Animal Jam's performance in Q3," Nitish added.

Recently, Nazara also acquired Comic Con India, a country-wide gaming and entertainment convention, in a Rs 55 crore deal.

The firm has also completed its FY24 fundraising goal, securing Rs 760 crore through a preferential placement to marquee investors, it said in a statement.

The mobile gaming company and sports media platform was founded in 1999 by Mittersain and operates through various segments, including gaming, e-sports, adtech, and gamified early learning.