Nazara Technologies Reports 53.6% Profit Decline in Q3
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Synopsis
Nazara Technologies has reported a significant profit decline of 53.6% in Q3 FY25, with net profit dropping to Rs 13.7 crore. Despite this, revenue from operations surged by 67% YoY to Rs 534.7 crore, driven by acquisitions and existing game performances. The company plans to raise Rs 495 crore for future growth.
Key Takeaways
- Nazara's profit fell by 53.6% in Q3.
- EBITDA margin dropped to 6.9%.
- Revenue up 67% YoY to Rs 534.7 crore.
- Company acquired CATS and King of Thieves.
- Plans to raise Rs 495 crore for expansion.
Mumbai, Feb 15 (NationPress) The gaming and e-sports firm Nazara Technologies has experienced a significant drop of 53.6% in its net profit for the October-December quarter (Q3) of FY25. The profit plunged to Rs 13.7 crore, down from Rs 29.5 crore in the same quarter last year (Q3 FY24), as per its exchange filing.
The EBITDA margin also fell to 6.9%, compared to 11.3% in the corresponding quarter of FY24.
In a similar vein, the company noted a 33% decrease in net profit for the July-September period (Q2 FY25).
The financial report indicates that Nazara suffered a loss of Rs 1.86 crore in Q2 from discontinued operations.
Moreover, total expenses rose by 11% to Rs 321.27 crore during the previous quarter, according to its filings.
On a positive note, Nazara's revenue from operations in Q3 surged by nearly 67% year-on-year (YoY), reaching Rs 534.7 crore.
This growth was propelled by acquisitions, such as Fusebox Games, and a strong showing from existing games like Animal Jam.
The company achieved its highest-ever EBITDA at Rs 52.4 crore, marking a 39% increase from the previous year.
Nazara Technologies has also recently acquired gaming IPs CATS: Crash Arena Turbo Stars and King of Thieves, which it will manage and publish directly.
The company anticipates that these acquisitions will aid in generating consistent revenue and profits moving forward.
To bolster its expansion strategy, Nazara is seeking Rs 495 crore through a preferential equity issue to Axana Estates LLP, led by Arpit Khandelwal and Mithun Sacheti.
This new capital, coupled with its existing cash reserves, will grant financial flexibility for future acquisitions and business growth.
“To support expansion, Nazara is raising Rs 495 crore through a preferential equity issue to Axana Estates LLP,” the company stated in its exchange filing.
“The fundraising and the company's existing cash reserves will provide the financial flexibility necessary to pursue further acquisitions and enhance organic growth to foster long-term value creation,” the regulatory filing elaborated.
After releasing its results, Nazara Technologies' shares closed at Rs 935.60 on the BSE, reflecting a 1.30% increase from the prior session.
