Nazara Technologies Q3 FY25 Profit Drops 54% Despite Revenue Surge

Prepend to the content

Nazara Technologies reported a 54% decline in net profit for Q3 FY25, while revenue surged significantly.

According to reports from Money Control and financial data from the National Stock Exchange, Nazara’s net profit fell to ₹13.68 crore from ₹29.52 crore in Q3 FY24. Operating revenue grew 66.9% to ₹534.7 crore from ₹320.4 crore.

Strong Revenue Growth Amid Profit Decline

The company’s highest-ever quarterly EBITDA(Earnings Before Interest, Taxes, Depreciation, and Amortisation) stood at ₹52.4 crore, marking a 39% YoY growth. Increased advertising and business expenses, along with higher employee costs, contributed to the profit decline.

Nazara’s gaming segment revenue rose 52.7% to ₹154.9 crore, aided by acquisitions like Fusebox Games. Profits in this segment tripled to ₹25.5 crore. The e-sports segment, accounting for 43.5% of revenue (₹232.7 crore), reported a ₹15.86 crore loss. Adtech contributed Rs 10.5 crore to revenue, with a profit of ₹3.53 crore.

Nazara’s notable acquisitions included CATS: Crash Arena and King of Thieves from ZeptoLab for ₹66.6 crore. The company is also expanding with a 60% stake purchase in Funky Monkey. Collaborations with Mattel’s Barbie and Moonbug’s Little Angel aim to enhance engagement.

In January, Nazara raised ₹495 crore through a preferential equity issue to Axana Estates LLP. An open offer by Axana Estates, Plutus Wealth, and Junomoneta Finsol seeks an additional 26% stake for ₹2,382.35 crore.

Total expenses rose 76% to ₹531 crore, driven by Rs 145 crore in marketing costs, ₹169 crore in content and web server costs, and ₹88.6 crore in employee benefits. North America contributed 35% of revenue, India 19%, and the rest of the world 46%.

Nazara also earned ₹22 crore from financial assets, taking overall revenue to ₹556.6 crore. The company’s stock closed at ₹930.65, with a market capitalization of ₹7,957.18 crore.

Fusebox Games is developing Bigg Boss and Big Brother-based interactive games. Nazara aims to scale its new operating model for future growth, integrating gaming IPs into the parent entity for better revenue management.

The post Nazara Technologies Q3 FY25 Profit Drops 54% Despite Revenue Surge appeared first on G2G News.