Nazara Technologies (NAZARA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was INR 250.1 crores (₹25,008 lakh), EBITDA INR 24.9 crores, and PAT INR 23.6 crores, marking continued profitability and focus on organic and M&A-driven growth, especially in gaming.

• Major acquisitions included full ownership of Paper Boat Apps (Kiddopia), Fusebox (UK), Freaks 4U Gaming, Comic Con India, and content assets by Sportskeeda.

• Strategic deployment of cash reserves for synergistic acquisitions to strengthen the platform for long-term growth.

• Board approved unaudited Q1 FY25 results and noted key management changes.

Financial highlights

• Q1 FY25 revenue: INR 250.1 crores (₹25,008 lakh); EBITDA: INR 24.9 crores; PAT: INR 23.6 crores; PAT grew 13.3% YoY.

• EBITDA margin was 10.0%, down from 13.0% YoY; operating cash flow surged to INR 131.4 crores, up 285.3% YoY.

• Gaming contributed 37% of revenue and 43% of EBITDA; eSports contributed 53% of revenue and 55% of EBITDA.

• Sportskeeda revenue up 33% YoY, EBITDA up 28% YoY; Animal Jam revenue grew 7% YoY.

• Earnings per share for Q1 FY25 was ₹2.96, flat year-over-year.

Outlook and guidance

• Management expects accelerated growth and profitability in eSports and gaming, driven by new IP launches and recent acquisitions.

• Anticipates subscriber base growth in Kiddopia as KPIs stabilize and IP partnerships close.

• Targeting EBITDA of INR 300 crores by FY 2027.