Nazara Tech sees modest revenue growth, profits decline amid rising costs
Nazara Technologies Ltd. reported a 7.3% year-over-year increase in revenue from operations to Rs 318.94 crore for the second quarter of fiscal year 2025, up from Rs 297.24 crore in Q2 FY24.
reported mixed financial results for the second quarter of FY25, with revenue rising modestly but a surge in expenses weighing heavily on profitability.
The company reported a 7.3% year-over-year increase in revenue from operations to Rs 318.94 crore for the second quarter of fiscal year 2025, up from Rs 297.24 crore in Q2 FY24.
Revenue from the gaming segment saw a 9.3% rise, reaching Rs 114.05 crore from Rs 104.31 crore in the prior-year period. The esports segment also recorded steady growth of 5.7%, with revenue climbing to Rs 181.76 crore from Rs 172.03 crore in Q2 FY24.
In contrast, total expenses rose 11.4% to Rs 321.27 crore, driven by significant increases in content, event, and web server expenses, which surged 52.9% to Rs 129.52 crore. Employee benefit expenses also saw a sharp rise of 38.2%, to Rs 67.64 crore.
Profit for the period declined to Rs 16.24 crore, a 32.8% drop from Rs 24.18 crore in Q2 FY24, as rising operational costs offset revenue gains.
In a move to simplify its corporate operations, Nazara Technologies has undertaken a series of divestments:
The company has exited Crimzoncode Technologies and Nazara Pro Gaming, selling its 100% stakes in both. A step-down subsidiary, Nazara Mauritius Ltd, sold its stake in NzMobile Kenya Limited, focusing on core markets.
Nazara also acquired an additional 48.42% stake in Paper Boat Apps for a cash consideration of Rs 300 crore, converting it into a wholly-owned subsidiary.
Nazara also increased its stake in Moonshine Technology with a strategic investment, acquiring 44.86% of its equity for a maximum of Rs 784.23 lakh. The transaction was split into a Rs 592.26 lakh cash payment and a Rs 239.25 lakh share swap.
Edited by Jyoti Narayan