Nazara Technologies recorded a profit after tax (PAT) of INR 50.7 Cr in FY22, up 273% year-on-year (YoY).

Nazara, a Mumbai-based gaming company’s revenue from operations grew 37% YoY to INR 621.7 Cr in FY22, initially helped by growth in its esports business segment.

Nazara’s esports business yielding grew about 79% to INR 303.9 Cr in FY22, subscribing to about 49% of its total operating revenue despite witnessing a negative impact from the Covid-19 pandemic. Growth in the esports industry was followed by the gamified early learning segment, which reported an income of INR 204.4 Cr in FY22, contributing about 33% to the total operating revenue.

Nazara Technologies' revenue comes at a time when the gaming industry is already facing challenges from the transformation in Apple’s app store policies and India’s overall challenging regulatory environment for real money gaming.

Revenue from this in the real money gaming business doubled to more than INR 29.7 Cr in FY22, contributing 5% of the total operating revenue as against 3% in FY21.

The company is a diversified gaming and sports media platform in India, Africa, and North America.

The company incurred a total expenditure of INR 575.4 Cr in FY22 versus INR 449.5 Cr in FY21. Like in previous years, the most considerable part of expenses was made in advertising and business promotion. 

As per analytics, the cash on hand of the company is INR 732.1 Cr as of March 31, 2022. 

The deal has a motive to scale up and strengthen NODWIN’s retail presence and accelerate its direct-to-consumer approach for the gaming and esports audiences in India.

Earlier last month, Nazara Pvt. Ltd, the Singapore-based wholly-owned subsidiary of Nazara, invested $2.5 M in US-based gaming fund BITKRAFT Ventures. 

According to a report, the count of online gamers in India grew to about 400 M by mid-2020 from about 250 M in 2018, making it the second-largest base of online gamers after China. It also recorded that the country’s online gaming market is expected to reach about $3.9 Bn by 2025.

EXECUTIVE OPINION:

“Our strategy of diversifying the portfolio across business categories continues to give us a solid and robust momentum to grow faster than the overall gaming and esports market in coming years,” Nazara CEO Manish Agarwal said in a statement.