Nazara Technologies Announces Results of Q3 FY2024-25
Nazara Technologies, a leading Indian gaming and sports media company, has recently announced its financial results for the third quarter of fiscal year 2024-25 (Q3FY25). The company’s consolidated net profit has taken a significant hit, declining by 53.6 percent to ₹13.7 crore (approximately $1.7 million). Despite this decline in profit, Nazara’s revenue from operations has witnessed a substantial increase of 66.8 percent year-on-year to ₹534.7 crore (approximately $67 million), up from ₹320.4 crore in the same quarter last year.
The decline in net profit can be attributed to various factors, including an increase in operating expenses and other costs, which have risen by 64.2 percent year-on-year to ₹444.5 crore. Additionally, the company’s other income has also decreased significantly, from ₹12.4 crore in Q3FY24 to ₹2.1 crore in Q3FY25.
However, Nazara’s revenue growth is a significant positive development, driven by the growth of its gaming business. The company’s gaming division, which includes its popular mobile games such as Carrom Clash and Chhota Bheem, has seen a significant increase in revenue, up 74.2 percent year-on-year to ₹444.5 crore. This growth is attributed to the company’s focus on developing engaging and interactive games that appeal to a wide range of audiences.
Nazara’s sports media division, which includes its digital publishing arm, has also seen an increase in revenue, up 40.1 percent year-on-year to ₹50.2 crore. The company’s sports media division has been expanding its offerings, including the launch of new channels and the acquisition of popular sports properties.
The company’s strong revenue growth is a testament to its diversified business model, which includes both gaming and sports media. This diversification has enabled Nazara to reduce its dependence on a single business segment, making it more resilient to market fluctuations.
In addition to its financial performance, Nazara has also made significant progress in terms of its strategic initiatives. The company has acquired several new gaming studios and has expanded its esports offerings, including the launch of new tournaments and leagues.
Looking ahead, Nazara is optimistic about its future prospects. The company has a strong pipeline of new games and sports properties, which are expected to drive growth in the coming quarters. Additionally, Nazara is expanding its presence in new markets, including Southeast Asia and Latin America, which are expected to provide significant opportunities for growth.
In conclusion, while Nazara’s net profit may have declined in Q3FY25, the company’s revenue growth and diversification of its business model are significant positives. With a strong pipeline of new games and sports properties, and a growing presence in new markets, Nazara is well-positioned to continue its growth momentum in the coming quarters.
