Debasis Mohapatra
Bengaluru, 27 August 2024
Recent acquisitions of gaming major, Nazara Tech will help the company to achieve an operating profit of Rs 300 crore by FY27.
“In FY24, our team has worked very hard to create a strong pipeline of opportunities that fit our objectives, very patiently but at the same time very actively and as can be seen, we are now deploying our cash reserves this year to acquire such businesses that we like and we expect that these acquisitions will help us accelerate towards our FY27 goal of achieving EBITDA of Rs 300 crore that we have set for ourselves,” Nitish Mittersain, CEO and Joint MD of Nazara Tech has told analysts in its Q1 FY25 post results call.
“Recently we announced the acquisition of the remaining stake in PaperBoat apps. Now our holding is 100% and we believe that there are several opportunities in front of us that can help grow this business going forward. We also acquired Fusebox an exciting IP based gaming studio in the UK that has done very well and again we believe this will add a lot of value in terms of potential growth and profitability to our business,” he said.
He also informed that company’s other subsidiaries were also active in the M&A space. While NODWIN acquired e-sports company, Freaks 4U as well as Comic Con India; its subsidiary, Sportskeeda acquired SaopCentral and Deltia’s gaming in recent months.
The company also said that given the spread of its portfolio, the seasonality factor will have less impact on revenue.
“Nazara is fairly diversified across businesses, so it does help us to smooth out these kinds of variations. But at the individual business level, there definitely are seasonalities in play. If you take something like Freaks 4U, that definitely sees significantly higher revenue in the second half. Just given the nature of how tournaments will happen in Europe again this is winter kind of season which works better,” Mittersain has said.
“Similarly, for PSN there is very high seasonality. The season typically runs from September to January for them. On the e-sports side as well for Sportskeeda there is an IPL season which is Q1. But other than that, for US sports and for the US part of the business second half is again higher, ad rates are also higher in that period. So again, from revenue quality there is a significant seasonality there,” he has added.
