Nazara Technologies, a company that works in online gaming, had some interesting news. Last Friday, they changed the focus of their shares after sharing their Q3FY25 results. Though the company earned less money compared to last year, their sales grew a lot.
The company’s profit dropped by 53% to Rs 13.6 crore for the three months that ended on December 31, 2024, even while their revenue jumped by 67% to Rs 534.6 crore from Rs 320 crore last year. The big problem was that their costs also went up significantly. Expenses increased by 76% to Rs 530.9 crore mainly because the money spent on ads and promotions tripled to Rs 145.3 crore. They also paid 86.5% more for their employees, totaling Rs 88.6 crore.
The part of Nazara that exports their products grew by 20% this quarter and earned the most money, followed by their gaming and advertising tech divisions. Revenue from games grew by over 50% to Rs 154.9 crore.
CEO Nitish Mittersain explained on social media that they are focused on growing their gaming services. They are building partnerships around the world and want to make Nazara a leader in the global gaming space from India.
Much of their growth in the gaming sector comes from their recent purchase of a UK gaming studio called Fusebox Games for Rs 228 crore in August 2024.
This month, two investors, Arpit Khandelwal and Mithun Sacheti, put Rs 495 crore into Nazara. Their investment increased Axana Estates LLP’s stake in the company to 5.4%.
In November 2024, Nazara raised Rs 855 crore by selling 8.9 million new shares at a price of Rs 990 each. SBI Mutual Fund was a big investor, putting in Rs 220 crore, along with other companies.
Nazara has also been busy expanding by acquiring other companies. Not long ago, they bought a full stake in Trinity Gaming, which creates content for Meta and has a gaming network on YouTube in India.
Last Thursday, Nazara Technologies shares closed at Rs 929.15, up 0.61% on the Bombay Stock Exchange (BSE). They shared these results after the market closed.
Leave a Reply