Nazara Technologies Confident Of Sustaining Revenue Growth After Q1 Surge

Nazara Technologies Ltd. is optimistic on sustaining its growth throughout the year after the gaming company's revenue surged in the first quarter.

The Rakesh Jhunjhunwala-backed firm’s revenue jumped 70% year-on-year to Rs 223 crore in the quarter ended June. Operating income rose 19% to Rs 30 crore. And its profit surged threefold to Rs 16.5 crore.

Nazara’s esports and real-money gaming businesses saw strong growth in the quarter, Nitish Mittersain, joint managing director at the company, told BQ Prime's Niraj Shah in an interview.

Kiddopia, the firm’s gamified early learning business, registered relatively flat growth. Mittersain said the company expects Kiddopia to fare much better in 2023-24.

On the company's elevated cost per trial, part of what it has to spend to acquire a single customer, Mittersain said the company would stabilise it over the next quarter before implementing any growth-related plans.

Nazara also has plans to aggressively pursue acquisitions, and is already in talks with several businesses for potential partnerships, he said.

Mittersain said any regulatory clarity regarding tax on real money gaming would not affect the firm greatly, as Nazara’s exposure to such skill-based gaming is only 5-6% of its total revenue.

Watch the full conversation here: