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Nazara Tech jumps after strong business update

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Capital Market
Last Updated : Apr 23 2021 | 4:04 PM IST

Nazara Technologies jumped 5.59% to Rs 1699 after the company's consolidated revenue surged 84% to Rs Rs 454.20 crore in FY21 compared with Rs 247.50 crore in FY20.

The revenue growth was led by gamified learning and eSports segments. The gamified learning segment registered 820% growth in revenue, growing from Rs 19.10 crore in FY20 to Rs 175.8 crore in FY21. Esports segment revenue surged 102% to Rs 170.10 crore in FY21, from Rs 84.20 crore in the previous fiscal.

"Gamified learning and Esports segments have not only demonstrated strong growth momentum in FY21 but have also laid foundation for predictable growth on account of proven user engagement and retention KPls in gamified learning and multiyear media licensing and game publisher agreements in case of Esports," the company said in a statement.

Revenue from freemium, telco subscription and real money gaming stood at Rs 19.5 crore, Rs 74.9 crore and Rs 13.9 crore, respectively in FY21.

The company's consolidated EBITDA, including share of non-controlling interest for FY21, witnessed 470% growth over FY20. EBITDA margin was 12% for FY21 as against 4% in FY20.

"As Nazara is operating in high growth business segments such as gaming, gamified learning and Esports, we will continue to drive profitable growth while prioritizing growth over profit maximization at this stage so that we can achieve and maintain market leadership in the segments we operate in, the company added.

Separately, the company informed that its board has given in-principle approval to its subsidiary, Halaplay Technologies, for raising funds to the tune of Rs 18.02 crore by issuing shares in one or more tranches to identified investors. Post completion of the said transaction, the stake of the company in Halaplay will be diluted from 74.02% to 64.70%, on a fully diluted basis, it added.

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Further, the company has also entered into a share purchase agreement with Sankalp Sharma and Absolute Sports (ASPL) for acquisition of 1.40% additional stake for Rs 96.16 lakh in ASPL, a subsidiary of the company. Post completion of the said transaction, the stake of the company in ASPL will increase from 63.90% to 65.30%.

Mumbai-based Nazara Technologies is one of the leading mobile games companies. It is India's leading diversified gaming and sports media platform with a presence across emerging and developed global markets such as Africa and North America, with offerings across the interactive gaming, eSports, and gamified early learning ecosystems.

Nazara Technologies reported a consolidated net loss of Rs 5.01 crore and sales of Rs 200.46 crore in the six months ended on 30 September 2020.

Shares of Nazara Technologies entered the bourses on 30 March 2021. The stock was listed at Rs 1971 on the BSE, at a premium of 79.02% to the IPO price of Rs 1101 apiece.

The IPO of Nazara Technologies was subscribed 175.46 times. The issue opened for bidding on 17 March 2021, and closed on 19 March 2021. The price band for the IPO was set at Rs 1100-1101 per share.

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First Published: Apr 23 2021 | 3:21 PM IST

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