Nazara Technologies (NAZARA) Q2 24/25 earnings summary

Executive summary

• H1 FY25 revenue reached INR 569 crores with EBITDA of INR 50.1 crores and PAT from continued operations INR 41.7 crores; Q2 revenue was INR 318.9 crores and EBITDA INR 25.2 crores.

• Strategic focus on profitable growth through organic initiatives and M&A, with emphasis on the four-game studio business and transition to organized decentralization.

• Raised INR 900 crores via preferential equity issue to fund growth and acquisitions.

• Major investments include 47.7% stake in PokerBaazi's parent Moonshine Technology, 100% acquisition of Kiddopia's parent Paper Boat Apps, and increased stake in Absolute Sports.

• Board approved merger/amalgamation of Paper Boat Apps with parent entity to enable fungible cash flows and operational efficiency.

Financial highlights

• Q2 FY25 revenue from operations was INR 318.9 crores, up 7.3% YoY; H1 FY25 revenue was INR 569 crores, up 3.1% YoY.

• Q2 FY25 EBITDA was INR 25.2 crores (7.9% margin), H1 FY25 EBITDA was INR 50.1 crores (8.8% margin), both down YoY.

• Gaming contributed 36% of H1 FY25 revenues and 66% of EBITDA; eSports contributed 57% of revenues and 28% of EBITDA.

• North America was the largest market with 39% revenue share, followed by India (31%) and rest of world (30%).

• Operating cash flow (pre-taxes) for H1 FY25 was INR 51.8 crores.

Outlook and guidance

• Early signs of positive impact from operational efficiency initiatives expected in H2 FY25.

• Anticipate stronger second half due to seasonality and business momentum, but no specific margin guidance provided.

• Kiddopia focusing on global expansion and IP partnerships, with new launches expected by Q1 FY26.

• PokerBaazi expected to deliver 30%-40% YoY growth and margin expansion over next 2-3 years.

• Datawrkz expects product and marketing investments to yield results in FY25-FY26.