NAZARANSEQ4 & FY25June 02, 2025

Nazara Technologies Limited

9,261words
97turns
7analyst exchanges
9executives
Management on call
Nitish Mittersain
CHIEF EXECUTIVE OFFICER
Rakesh Shah
CHIEF FINANCIAL OFFICER – NAZARA TECHNOLOGIES LIMITED
Anupriya Sinha Das
HEAD OF CORPORATE
Terry Lee
CHIEF EXECUTIVE OFFICER – FUSEBOX GAMES
Akshat Rathee
CO-FOUNDER AND MANAGING
Ajay Pratap Singh
CHIEF EXECUTIVE OFFICER – ABSOLUTE SPORTS PRIVATE LIMITED
Puneet Singh
CO-FOUNDER AND CHIEF OPERATING OFFICER OF BAAZI GAMES
Senthil Govindan
FOUNDER AND CHIEF
Jayram Shetty
ICICI SECURITIES
Key numbers — 40 extracted
INR 153.5 crore
pecially on a very rainy day in Mumbai. In FY '25, we delivered our highest ever annual EBITDA of INR 153.5 crores on revenues of INR 1,624 crores with a PAT of INR 62.5 crores. Our gaming EBITDA margins stood
INR 1,624 crore
Mumbai. In FY '25, we delivered our highest ever annual EBITDA of INR 153.5 crores on revenues of INR 1,624 crores with a PAT of INR 62.5 crores. Our gaming EBITDA margins stood at 20% as well as generated healt
INR 62.5 crore
our highest ever annual EBITDA of INR 153.5 crores on revenues of INR 1,624 crores with a PAT of INR 62.5 crores. Our gaming EBITDA margins stood at 20% as well as generated healthy operating cash, reinforcing
20%
revenues of INR 1,624 crores with a PAT of INR 62.5 crores. Our gaming EBITDA margins stood at 20% as well as generated healthy operating cash, reinforcing our intent to focus on core gaming busin
INR 520.2 crore
our intent to focus on core gaming business going ahead. In Q4 FY '25, we delivered revenues of INR 520.2 crores, up 95% year-on-year and EBITDA of INR 51 crores, reflecting a 74% year-on-year increase. I'm al
95%
n core gaming business going ahead. In Q4 FY '25, we delivered revenues of INR 520.2 crores, up 95% year-on-year and EBITDA of INR 51 crores, reflecting a 74% year-on-year increase. I'm also happy
INR 51 crore
ead. In Q4 FY '25, we delivered revenues of INR 520.2 crores, up 95% year-on-year and EBITDA of INR 51 crores, reflecting a 74% year-on-year increase. I'm also happy to share that since our IPO in FY '21, 4
74%
vered revenues of INR 520.2 crores, up 95% year-on-year and EBITDA of INR 51 crores, reflecting a 74% year-on-year increase. I'm also happy to share that since our IPO in FY '21, 4 years ago, Nazara'
3.6x
. I'm also happy to share that since our IPO in FY '21, 4 years ago, Nazara's revenues have grown 3.6x and EBITDA has grown 3.4x, translating into a compounded growth of 38% and 36%, respectively. Dur
3.4x
that since our IPO in FY '21, 4 years ago, Nazara's revenues have grown 3.6x and EBITDA has grown 3.4x, translating into a compounded growth of 38% and 36%, respectively. During this year, we have b
38%
ara's revenues have grown 3.6x and EBITDA has grown 3.4x, translating into a compounded growth of 38% and 36%, respectively. During this year, we have been very busy building out our strategic plans.
36%
venues have grown 3.6x and EBITDA has grown 3.4x, translating into a compounded growth of 38% and 36%, respectively. During this year, we have been very busy building out our strategic plans. We acqu
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Guidance — 20 items
Moving to Fusebox
opening
“Q4 FY'25 revenue stood at INR 79.1 crores and EBITDA at INR 13.1 crores, up 149% year-on-year.”
Moving to Funky Monkeys
opening
“Q4 FY'25 revenue was INR 4.3 crores, EBITDA rose 45% year-on-year to INR 1.6 crores.”
Moving to other segments
opening
“The business update will be covered by Akshat in a later section.”
Moving to other segments
opening
“The core Sportskeeda business continues to grow well, with revenue and EBITDA increasing by 25% and 25%, respectively in FY'25.”
Akshat Rathee
opening
“Final note on Brandscale, we’ve had proactive measures in play for a onetime impairment of INR 15 crores on the OCD investments that we have done that was in Q4 of '25 and there are also an additional loans worth about INR 25 crores, which will be provisioned in due course based on the recoverability and the fixing of that business.”
Puneet Singh
opening
“Our focus will be on the pillars of the game like Watch, Learn, Play, Analyze and Glorify.”
Puneet Singh
opening
“Going forward, our focus will continue to be spending on the ecosystem of poker and a main driver for the long- term growth would be the levers like Watch, Learn, Play and Glorify.”
Puneet Singh
opening
“And we as the category leaders currently will be focusing on growing the market of poker in India, which will indeed benefit our numbers going forward as well.”
Jinesh Joshi
qa
“And you also mentioned in the opening remarks that performance of Freaks 4U has been a bit subpar and we intend to turn that around in the near future.”
Nitish Mittersain
qa
“As you know, for us, all along, we are focused on growth for the Esports business and the Nodwin business, given that they are market leaders, and we want to ensure that we build the right kind of moats for this business going forward to take advantage of the macro trend that eSports offers us and the market leadership opportunity that it offers us.”
Risks & concerns — 2 flagged
I think what you should look at is that globally the app stores are under significant pressure to reduce commissions.
— Nitish Mittersain
And yes, it's difficult to compare exactly any company to us, I would say.
— Nitish Mittersain
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Q&A — 7 exchanges
Q
Sir, my question is on Nodwin. What is the path to profitability over here? We have seen an EBITDA loss of INR 15 crores in FY '25. And you also mentioned in the opening remarks that performance of Freaks 4U has been a bit subpar and we intend to turn that around in the near future. In addition to that, I believe additional provision of INR 25 crores from Wings might also come through. So just to get the big picture right, I mean, how should we think about the profits coming back into Esports. While in terms of scale, we are doing reasonably well, but consistently, we have been in the negative
Nitish Mittersain
As you know, for us, all along, we are focused on growth for the Esports business and the Nodwin business, given that they are market leaders, and we want to ensure that we build the right kind of moats for this business going forward to take advantage of the macro trend that eSports offers us and the market leadership opportunity that it offers us. So I think broadly, we've all along been okay with a breakeven business as long as it's growing strategically and growing fast. I think that's how we have approached it. This year a couple of issues - a little lag on Freaks 4U profitability and the
Q
My first question is on Nodwin. Can you just help me with Nodwin's revenue mix between, let's say, ticketings, IPs, sponsorships and merchandise?
Nitish Mittersain
Akshat can you take that please? Nazara Technologies Limited May 26, 2025 Of course. I'm happy to take you through a very 1 minute crash course on what’s the right way to think about the Nodwin business. IPs are not independent, right. So I'll give you an example. Nodwin works on a strategy, which is called the triple dip strategy. That means our influencer that we manage through Playground and we discover through Playgrounds is the person we go ahead create content with and which also leads to brand endorsement. That influencer then also comes in at our festival and then also participates in
Q
Sir, I have 2-3 questions. First, our depreciation and amortization has increased significantly in FY '25. So where do you see this in FY '26 and the same for advertising and promotion expenses. And the third question is that Kiddopia is still struggling since I think it's been 2 years, and the segment is still struggling. And also the recent acquisition Curve Games, where I checked that its last 3 years revenue is stagnant. So how do you plan to bring growth in this segment? And the third one is that we have acquired a lot of businesses in the last 2-3 years and revenue have almost doubled wh
Nitish Mittersain
Those are many questions, so I'll try and answer some of them. I didn't really get your first and second question well, but let me answer a couple of questions and you can ask the follow-on. So with respect to Kiddopia, as you know, we took control of this business a few months ago by acquiring 100% stake from the Founders. And thereafter, we have put in our own growth strategies in play. We are starting to see results. As you can see from our presentation, in this quarter, you've seen a significant drop in the cost per trial, which had gone up to $40-$42 and has now come down to $33-$34 which
Q
Sir my question is regarding our ad-tech platform. What kind of ad-tech platform does Nazara have? Is it open ended like Meta or Google or a close-ended platform only for limited customers?
Nitish Mittersain
I think it will be best for me to get Senthil, he's on the call to answer this question in more detail. Nazara Technologies Limited May 26, 2025 So question broke up a little bit, but I think the question was -- do we have an open stack advertising for our ad-tech platform? Or is it closed with an... Can common people access our ad-tech platform directly? I see. Understood. So yes, so we have a product which is 100% self-serve. So anyone who wants can actually go to the platform which is called Vizibl.ai And they can just log in into the credentials and pay as they go. So the whole purpose of
Q
I have two questions. One - Poker has been a core growth drivers for Moonshine. So what are our plans to expanding into adjacent categories and RMG space like Rummy and Fantasy - both at Moonshine level and also at Nazara level? Nazara Technologies Limited May 26, 2025
Nitish Mittersain
I think right now for Moonshine, the biggest focus is on Poker given their market leadership in that space and the rapid growth that they're experiencing -- that said, of course, we will continue to look at all opportunities and do what is the right thing for the business. From a Nazara perspective, given the size of our investment in Moonshine, at this point of time, we are not taking other initiatives ourselves directly on the skill-based RMG space. Like I mentioned earlier, at least in FY '26, a lot of our capital allocation and focus is on the core gaming studio business. And the second qu
Q
My first question is related to Nodwin. So I think earlier in the call, Akshat mentioned that the core business remains profitable. So what is core here? Does it exclude Freaks and NH7?
Nitish Mittersain
Yes, Akshat. I'll let you take that. Nazara Technologies Limited May 26, 2025 Of course. AtNodwin had three core businesses that Nodwin runs. One is the Live business, one is the eSports business that we have and the third is the media business that we have. These are the three core engines of Nodwin. But as an example of the Freaks business which you talked about, Freaks is a company based out of Germany. They go ahead and do GamesCom, which typically happens in Cologne in Germany. They also do market entry consulting and agency work. They have an IP called Prime League that they go ahead and
Q
Thank you, everyone, for logging in today. I hope to call us productive for you. Thank you, and goodbye.
Management
Speaking time
Nitish Mittersain
26
Ramanuj Chandak
13
Moderator
9
Nikhil Porwal
8
Akshat Rathee
6
Puneet Singh
6
Senthil Govindan
6
Anupriya Sinha Das
4
Jinesh Joshi
4
Samarth Patel
3
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Opening remarks
Jayram Shetty
Hi, everyone. On behalf of ICICI Securities, I welcome you all to the Quarter 4 FY '25 Earnings Call of Nazara Technologies. We have with us the management represented by Mr. Nitish Mittersain, CEO and Joint MD of Nazara Technologies; Mr. Rakesh Shah, the CFO of Nazara Technologies; Ms. Anupriya Sinha Das, Head of Corporate Development, Nazara Technologies; Mr. Terry Lee, CEO of Fusebox Games; Mr. Akshat Rathee, Co-Founder and Managing Director of Nodwin Gaming; Mr. Ajay Pratap Singh, CEO, Absolute Sports Private Limited; Mr. Puneet Singh, Co-Founder and COO of Baazi Games and Mr. Senthil Govindan, Founder and CEO of Datawrkz Business Solutions Private Limited. I would like to hand over the call to the management for opening remarks. Over to you, Nitish sir.
Nitish Mittersain
Thank you. Good evening, everyone and thank you for joining us, especially on a very rainy day in Mumbai. In FY '25, we delivered our highest ever annual EBITDA of INR 153.5 crores on revenues of INR 1,624 crores with a PAT of INR 62.5 crores. Our gaming EBITDA margins stood at 20% as well as generated healthy operating cash, reinforcing our intent to focus on core gaming business going ahead. In Q4 FY '25, we delivered revenues of INR 520.2 crores, up 95% year-on-year and EBITDA of INR 51 crores, reflecting a 74% year-on-year increase. I'm also happy to share that since our IPO in FY '21, 4 years ago, Nazara's revenues have grown 3.6x and EBITDA has grown 3.4x, translating into a compounded growth of 38% and 36%, respectively. During this year, we have been very busy building out our strategic plans. We acquired Fusebox games in the U.K. establishing a stronghold in narrative-based mobile gaming. We also entered offline gaming with Funky Monkeys and Smaaash, creating a 360-degree gami
Anupriya Sinha Das
Thank you, Nitish. Good evening, everyone. In Q4 FY '25, our Gaming segment revenue grew by 72%, EBITDA grew by 111%, with EBITDA margin of 21.4%. In FY '25, the segment revenue grew by 27%, EBITDA by 27% with EBITDA margin of 19.9%.
Moving to Fusebox
Fusebox reported revenue of INR 161.6 crores and EBITDA of INR 30.2 crores in FY '25 for the period it has been consolidated with the books of Nazara. Q4 FY'25 revenue stood at INR 79.1 crores and EBITDA at INR 13.1 crores, up 149% year-on-year. Higher UA spend in Q4 FY '25 led to a strong top-line growth with a temporary margin dip. These UA investments are expected to drive growth in FY '26. Momentum will also be boosted by new game launches, starting with Big Brother and Bigg Boss in it.
Moving to Kiddopia
Nazara Technologies Limited May 26, 2025 In FY '25, Kiddopia posted revenue of INR 191.8 crores and EBITDA of INR 43.7 crores with a strong EBITDA margin of 22.8%. Revenue stood at INR 46.3 crores with EBITDA of INR 9.3 crores in Q4 FY '25 with an EBITDA margin of 20.1%. Kiddopia launched branded mini games in FY '25 through strategic licensing deals with Moonbug and Mattel, featuring Little Angle and Barbie respectively. A new partnership with Hasbro will introduce PJ Masks themed content featuring Catboy, Owlette and Gekko set to launch later this year.
Moving to Animal Jam
Revenue grew organically 11% to INR 104.9 crores, while EBITDA rose 16% to INR 21.9 crores. In Q4 FY '25, revenue increased 12% to INR 26.8 crores with EBITDA surging 69% to INR 4.9 crores. This growth was driven by strong engagement with premium features such as Wishing Coins, super boxes and themed content highlighting the effectiveness of our live opsand monetization strategy. Animal Jam signed a partnership with Slinky in January '25 and is developing a new casual game aimed at cross-generational appeal.
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