Nazara Tech’s Q3 revenue surges 67%, driven by gains in ad tech

Online gaming and esports company Nazara Technologies reported a 67% year-on-year surge in quarterly revenue in Q3 FY25 on the back of strong gains from its ad tech vertical.

The company clocked in revenue of Rs 534.69 crore during the three months ended December 31, 2024, compared with Rs 320.40 crore earned in the year-ago period.

Nazara recorded a rise in revenue across its three verticals—gaming, esports and ad tech, with the latter reporting 5.67X growth to generate a revenue of Rs 147.87 crore.

The gaming giant has been sprucing up its digital advertising vertical with strategic investment in its subsidiary, Datawrkz, along with the recent acquisition of growth marketing agency, Space and Time. These moves have helped the company expand operations into the European and North American markets, contributing to the jump in this segment’s growth.

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However, amid a string of acquisitions, the company also reported a decline in profits for the period, primarily due to mounting expenses such as advertising and promotion-related expenditures and employee benefit expenses.

It posted a 53% decline in net profit for the period at Rs 13.68 crore, compared with Rs 29.04 crore earned in the previous year.

The results come on the heels of the Mumbai-based company being ordered to pay Rs 5.68 crore in back taxes, penalties, and interest by tax authorities, citing delays in receiving export proceeds.

Additionally, in January, Nazara raised Rs 495 crore by selling a 5.4% stake to an entity led by existing investors Arpit Khandelwal and Mithun Sacheti, subsequently triggering an open offer.

These funds, along with the company’s cash reserves, will be used to pursue further acquisitions to boost organic growth in the company, it said in a statement.

Shares of the company closed up 0.61% at Rs 929.15 apiece on BSE on Thursday.