Nazara Technologies Q1 Profit Jumps 54% to $4 Million

Revenue nearly doubled, hitting ₹4.988 billion ($56.76 million) for the quarter ending June 30, 2025, compared to ₹2.5008 billion ($28.46 million) in the same period last year. However, revenue was down 4.8% from the previous quarter’s ₹5.202 billion ($59.2 million).

Key Financial Highlights

• Net profit: ₹364.2 million ($4.14M), up 54% YoY
• EBITDA: ₹474 million ($5.4M), up 90% YoY
• PBT: ₹306.2 million ($3.49M), vs ₹340.3 million ($3.87M) YoY
• Post-tax profit: ₹513 million ($5.84M), up 118% YoY

Segment Performance

• Gaming remains Nazara’s largest revenue driver, contributing ₹2.4092 billion ($27.43M) with a segment profit of ₹181 million ($2.06M) and an EBITDA margin of 24.4%.
• Esports brought in ₹1.5414 billion ($17.54M) but recorded a loss of ₹243.5 million ($2.77M).
• Ad-tech generated ₹1.0606 billion ($12.08M) in revenue.

Growth was led by Fusebox Games, Animal Jam, and Curve Games, supported by Nazara’s centralized efforts in data analytics and user growth optimization.

Shareholder-Friendly Moves

To enhance shareholder value, Nazara’s board approved:

1. A stock split: Each fully paid share of ₹4 will be split into two shares of ₹2 each.
2. A bonus issue: Post-split, shareholders will receive 1 bonus share for every 1 share held.

M&A and Strategic Investments

• Curve Digital Acquisition: Nazara’s UK arm acquired Curve Digital Entertainment Ltd. and affiliates for $29.55 million.
• Wrestling IP Buy: Sportskeeda secured the rights to ITR Wrestling and TJR Wrestling for $1.25 million.
• AFK Gaming Deal: Nodwin Gaming took a 92.3% stake in AFK Gaming Pvt. Ltd. for $860,000.
• Investment in STAN: Nazara Dubai pledged up to $1 million for a 1.54% stake in Singapore-based Getstan Technologies.

CEO Nitish Mittersain commented, “We’re seeing early success in our IP-led gaming strategy and are reinvesting aggressively to expand our IP base and scale user acquisition. Strengthening our leadership bench has also been a key focus.”

Leadership Expansion

Nazara appointed veteran Rohit Sharma as Executive Director. Sharma, who co-founded and led POKKT Mobile Ads, brings over 25 years of experience in gaming and digital media. After POKKT’s acquisition by Japan’s AnyMind Group, Sharma served as global COO, helping take the company public on the Tokyo Stock Exchange in 2023.

Earlier, he led the digital and gaming verticals at Reliance ADA Group, building them from the ground up.

Global Footprint and Brands

Nazara operates across India, North America, and other international markets, with a portfolio that includes:

• Gaming: Curve Games, Kiddopia, Animal Jam, Fusebox Games, World Cricket Championship
• Media: Sportskeeda
• Offline: Funky Monkeys, Smaash Entertainment
• Ad-Tech: Datawrkz

Tax Dispute

Nazara disclosed ongoing GST (Goods and Services Tax) disputes involving certain subsidiaries and affiliates. The total value of notices exceeds ₹11.87 billion ($1.35 billion). However, the company maintains that these are procedural matters and do not currently pose a liability.