Nazara Technologies reports strong Q4 results with 43% increase in PAT

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Mumbai-based gaming and media giant Nazara Technologies has reported a 43% rise in profit after tax (PAT) from continued operations, reaching Rs 17 crore for the final quarter of fiscal year 2024. This occurred despite an 8% decline in operating revenue for the quarter, which fell to Rs. 266 crore.

As reported by the Financial Express, for the full fiscal year, Nazara Technologies’ revenue increased by 4.3% to Rs. 1,138 crore, compared to Rs. 1,091 crore in the previous year. The company’s PAT from continued operations increased by 41% to Rs. 89 crore, up from Rs. 63 crore in FY23.

CEO and founder Nitish Mittersain expressed optimism for the coming fiscal year, stating, “We are optimistic about FY25, expecting accelerated growth in both revenue and EBITDA. With substantial cash reserves and a robust M&A pipeline, we are well positioned to seize further growth opportunities and enhance our growth trajectory through strategic M&A over the next 12 months.”

In Q4 FY24, Nazara’s EBITDA increased by 5.4% to Rs. 29.3 crore, compared to Rs. 27.8 crore in the same quarter the previous year. The company’s annual EBITDA also showed improvement, growing by 16.5% and increasing the EBITDA margin by 110 basis points year-on-year to 11.2%.

The company’s gaming segment remained stable at Rs. 406.5 crore, while its esports division saw a 19% year-on-year growth to Rs. 631.7 crore. However, the adtech segment experienced a 32% year-on-year decline, dropping to Rs. 103.8 crore.

Nazara Technologies has been active on the acquisition front, including the acquisition of Pro Football Network by subsidiary Absolute Sports (Sportskeeda), which doubled Pro Football Network’s business post-acquisition and turned it profitable. In April 2024, Nextwave acquired UTP, a casual card game, while NODWIN Gaming acquired Comic Con India.

Mittersain highlighted the company’s strategic initiatives and financial position, noting that Nazara raised Rs. 950 crore at the group and subsidiary levels, resulting in a net cash balance of Rs. 1,450 crore. He added, “We have also announced the acquisition of a 100% stake in Nextwave Multimedia Private Limited, developers of the popular mobile cricket games under the ‘World Cricket Championship’ franchise.”

Looking ahead, Nazara Technologies aims to leverage its new publishing platform, upcoming game launches, IP partnerships, and a strong M&A pipeline to drive further growth and expansion in FY25.

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