Nazara reports 65.1% rise in Q2 revenue helped by gains in mobile gaming vertical
During the quarter, the company also recorded an impairment on its investment in PokerBaazi due to new regulations that banned online real-money games in the country.
Listed gaming giant Nazara Technologies reported a 65.1% uptick in revenue for the three months ended September 30 on the back of strong growth in the mobile gaming segment.
In Q2, the company reported a revenue of Rs 526.5 crore and EBITDA of Rs 62 crore, up 146.4% year-on-year. Growth during the quarter was led by improved retention rates, deeper LiveOps engagement, and cross-platform distribution across mobile, console, and PC.
Nazara’s mobile gaming vertical remained the strongest growth contributor during the quarter, it said in a statement. The segment consists of global franchises such as Love Island, Big Brother, Kiddopia, Animal Jam, and WCC.
The firm’s PC/console publishing business continued to perform steadily during the quarter, the company added, while its offline interactive entertainment brands Smaaash and Funky Monkeys delivered profitable growth driven by growing repeat footfall and expansion.
However, during the quarter, new regulations in India’s online skill-based real-money gaming space resulted in an impairment on its investment in Moonshine Technologies, the parent company of PokerBaazi.
During this period, Nazara also reduced its stake in Nodwin Gaming to below 50%, resulting in the firm no longer being a subsidiary of the company—this resulted in Nazara measuring its retained stake in Nodwin Gaming at fair value, leading to a one-time gain, the company said in a statement.
“We are evolving from publishing individual games to building and scaling long-term franchises. Our Centres of Excellence in UA, Analytics, AI, and Growth are creating portfolio-wide operating leverage. The accounting adjustments this quarter, including the Moonshine impairment and NODWIN fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business,” said Nitish Mittersain, Joint Managing Director & CEO of Nazara Technologies.
Edited by Jyoti Narayan