Real money gaming co A23’s parent sees jump in FY24 profit even as revenue stagnates
Head Digital Works managed to cut down other expenses during the year, including corporate social responsibility expenditures and safety security expenses.
Online gaming platform Head Digital Works reported a surge in net profit for the year ended March 31, 2024, helped by controlled expenses.
The company, which operates real money gaming platforms like A23 Rummy and A23 Poker, saw a 24.8% jump in net profits in FY24 to Rs 72.38 crore compared with Rs 58.02 crore earned in the previous fiscal year.
Head Digital Works managed to cut down other expenses during the year, including corporate social responsibility expenditures and safety security expenses. This helped the company report a marginal decline in total expenses to Rs 761.18 crore in FY24 compared with Rs 764.25 crore in the previous year.
Meanwhile, the company reported a 40% rise in employee benefit expenses to Rs 137.68 during FY24. These are expenses incurred by the company to provide benefits to their employees, including salary and other incentives.
However, the online rummy operator reported flat revenue for FY24 of Rs 841.39 crore, compared with Rs 839.14 crore in FY23.
Online gaming companies like A23’s main source of revenue is the platform fee or the commission charged from players using the website.
A23 competes with other real money gaming companies including MPL, Zupee, and WinZO.
Mobile Premier League (MPL) parent company M-League's revenue climbed 22% to $130 million in FY24, it had said in October last year.
Edited by Kanishk Singh