Nazara Technolo.Q1 FY24
Nazara Technolo. Q1 FY24 Earnings Call Analysis
Revenue, margin, capex, fundraise and order book outlook from management commentary.
Price: ₹370Market Cap: ₹14.2K CrSector: Entertainment
Management growth scorecard
Revenue
Category 2
Margin
Category 3
Fundraise
Yes
Order
N/A
Capex
Yes
2 of 4 growth signals are positive.
Full analysisRevenue guidance
Category 2Future growth expectations for Nazara Technologies as per the provided transcript are:
- **Overall Revenue Growth**:
- Aiming for organic growth of 30%-35% annually in the eSports business.
- Expecting margin improvement and revenue growth over FY24 compared to FY23.
- **Gaming Vertical**:
- Growth in key gaming IPs like Kiddopia (10% YoY growth) and hope to start growing others like World Cricket Championship.
- Efforts underway to increase subscriber base for Kiddopia beyond current plateau (300,000+ subscribers).
- Potential growth from new monetization experiments and product pricing optimization.
- **Sportskeeda and eSports**:
- Significant growth expected in Sportskeeda driven by IPL season and expansion in U.S. sports.
- Pro Football Network to gain revenue traction starting Q2 with peak seasons in Q3 and Q4.
- Plans to roll up similar properties to scale Sportskeeda faster.
- **Adtech Business**:
- Expect revenue and EBITDA growth from Q3 onwards after focusing on higher-margin clients.
- **Nodwin Gaming**:
- Margin improvement and healthy growth expected in FY24 with profitability forecast.
- Growth fueled by strategic events like BGMI Master Series and brand investments.
Overall, Nazara expects solid growth across verticals driven by organic expansion, M&A, and monetization improvements.
See what Nazara Technolo. management said on margin guidance — free account, 30 seconds.
Fundraise plans
Yes- Nazara Technologies has taken an enabling resolution from its Board to raise funds.
- They are seeking shareholder approval for a fundraise of up to INR 750 crores.
- The company intends to raise these funds at an appropriate time and will keep stakeholders posted on progress.
- The fundraise could involve equity or other instruments, but specific details are not provided.
- No explicit mention of new debt fundraising in the transcript.
- Fundraising is aligned with capital allocation towards acquiring gaming IPs and supporting business growth.
See what Nazara Technolo. management said on order book — free account, 30 seconds.
Capex plans
Yes- Nazara is pursuing a fundraise of up to INR 750 crores, with timing to be decided and shareholders' approval sought.
- Capital allocation focus areas include acquiring and building gaming IPs recognized in India and global markets.
- Increased capital allocation intended for the Real Money Gaming (RMG) sector, pending regulatory clarity.
- The company aims to expand through organic growth and acquisitions at both Nazara and subsidiary levels, with subsidiaries generating and using their own cash for investments.
- Management is actively exploring acquisition opportunities and building a strong pipeline of gaming studios and IPs.
- Post regulatory clarity, Nazara expects significant opportunities to invest and grow, particularly in the skill-based money gaming space.
- Investment in new teams and expansion within subsidiaries, such as adding 35-40 people in WildWorks (U.S.) noted as a contributor to increased employee expenses.
Track Nazara Technolo. — get its next earnings analysis in your feed
Margin guidance
Category 3- Nazara aims for overall margins in FY24 to be higher than FY23 on a blended basis, indicating expected profitability improvement.
- Gaming segment, including Kiddopia, Animal Jam, and others, shows growth potential with ongoing efforts to optimize monetization and user acquisition; Kiddopia margin is expected around 20-23% going forward.
- Nodwin Gaming, currently EBITDA negative in Q1FY24 due to investment phase and deferred launches, targets profitability for the full FY24 with margin improvements from Q2 onwards.
- Sportskeeda anticipates continued good growth driven by U.S. sports and IPL, with opportunities to roll up more properties, potentially improving revenue and profits in coming quarters.
- Real Money Gaming (RMG) segment faces regulatory uncertainty but is seen as a future growth opportunity once clarity emerges, with capital allocation subject to evolving market conditions.
- Overall, Nazara expects continued growth in revenue and improvement in EBITDA margins across segments, aiming for a blend of profitable growth and scale-up in FY24 and beyond.
Order book
The transcript from the Nazara Technologies Limited earnings call dated July 31, 2023, does not explicitly mention the current or expected order book or pending orders status. However, relevant insights include:
- Nazara has key launches in its Nodwin eSports business planned for Q2, Q3, and Q4, including BGMS (BGMI Master Series) partnered with Star Sports and OTT platforms.
- The company is actively pursuing acquisitions and expanding its gaming IP portfolio, supported by recent funding in Nodwin.
- There is reference to awaiting regulatory clarity in the real money gaming (RMG) sector, suggesting some capital allocation decisions are pending such clarity.
- The company has an enabling resolution to raise up to INR 750 crores to fund acquisitions and growth but has not disclosed a formal order backlog.
- Ongoing partnerships (e.g., Krafton, Sony) and upcoming events indicate a robust pipeline but no specific order book data is shared.
No explicit details on pending orders or formal order book values are disclosed in the call.
How does Nazara Technolo. rank vs peers in Entertainment?
Pro featureThisNazara Technolo.
Rev 2Mar 3
How does Nazara Technolo. rank in Entertainment?
Compare Nazara Technolo. against every Entertainment company (Q1 FY24) on revenue, margins and earnings-call signals.
Continue your research
What Nazara Technolo.'s management said in earlier quarters
Others in Entertainment this season
- Balaji Telefilms Ltd (Q2 FY19)
Digital expansion is well-funded with a mix of direct B2C and indirect B2B2C subscriber growth, with B2B2C accounting for 70% of revenues. Key concall…
- Balaji Telefilms Ltd (Q2 FY20)
Capital employed in movie business maintained around Rs.100 Crores with controlled investment. Key concall takeaways from Balaji Telefilms Ltd's Q2 FY20…
- Balaji Telefilms Ltd (Q3 FY20)
Movie business capital deployment capped at Rs.100 crore annually with 3-4 movies released per year; three out of four upcoming movies pre-sold and already…
- Balaji Telefilms Ltd (Q1 FY21)
Motion picture business capped at Rs.100 Crores investment with selective distribution strategies to manage risks. Key concall takeaways from Balaji Telefilms…