Nazara Technologies' Q4 profit shrinks by 98% YoY to Rs 18 lakh
In the January-March quarter, Nazara's operating revenue shrank by 8.1% year-on-year to Rs 266.2 crore.
Gaming and entertainment company saw its Q4 FY24 profit plummet 98% year-on-year to Rs 18 lakh, down from Rs 9.4 crore in the comparable period a year ago.
For the full FY24, profit rose by 21.8% at Rs 74.75 crore, compared with Rs 61.4 crore earned in FY23.
For the year ended March 31, 2024, Nazara's operating revenue stood at Rs 1,138.3 crore, marking a 4.3% increase from the Rs 1,091 crore it earned in the previous fiscal year. However, in the January-March quarter, its operating revenue shrank by 8% year-on-year to Rs 266.2 crore.
Most of Nazara's revenue comes from three core segments—gaming, esports, and adtech. According to investor presentations, the gaming segment generated a revenue of Rs 406.4 crore in FY24. Nearly half of this revenue came from Kiddopia, a subscription-based gamified early learning app with over 5 million downloads on Google Play.
However, a major chunk of Nazara's revenue came from its esports category, which brought in Rs 631.7 crore in FY24.
While Nazara's expenses rose by a modest 5.7% to Rs 1.112.4 crore in FY24 compared with Rs 1,051.7 crore in the year-ago period, the company significantly reduced its advertising and promotional expenditure by 26% to Rs 177.5 crore for the fiscal year. In Q4 FY24, the total expenses increased marginally to Rs 285 crore from the year-ago period.
In 2024, the Nikhil Kamath-backed gaming company strengthened its cash position by raising Rs 950 crore, its largest fundraise to date, mainly from strategic and financial investors, for M&A and growth initiatives. The company had also acquired ComicCon India, a gaming and entertainment convention, for Rs 55 crore.
Founded in 1999, Nazara Technologies is a diversified gaming and sports media platform that offers a range of services including mobile gaming, esports organisation, and digital advertising technology. The company is backed by late billionaire Rakesh Jhunjhunwala and 's Nikhil Kamath.
(The copy was updated for context.)
Edited by Megha Reddy