Nazara Technologies reported a 47.56% decline in consolidated net profit from continuing operations to Rs 11.80 crore despite 7.3% increase in revenue from operations to Rs 318.94 crore in Q2 FY25 over Q2 FY24.
Profit before tax (PBT) rose 2.4% YoY to Rs 21.75 crore during the quarter.EBITDA fell 9.8% to Rs 25.2 crore in Q2 FY25 as compared with Rs 27.9 crore posted in corresponding quarter last year. EBITDA margin stood at 7.9% in Q2 FY25 as against 9.4% in Q2 FY24.
The companys segment revenue from gaming business stood at Rs 114.05 crore (up 9.34% YoY), revenue from eSports business was at Rs 181.76 crore, (up 5.66% YoY), while Ad tech segment revenue stood at Rs 24.13 crore (up 7.1% YoY) during the period under review.
Meanwhile, the companys board has approved the merger of Paperboat Apps with itself.
Paperboat is an indie studio engaged in designing, developing and publishing world class edutainment apps for kids. Paperboat are the makers of Kiddopia Indias largest subscription based edutainment app for early learners Kiddopia, offers interactive games and activities that foster cognitive development, selfexpression and also social-emotional learning in early age Kids. As on 30 September 2024, the companys total income stood at Rs 97.85 core.
The proposed amalgamation of Paperboat Apps with NazaraTech is expected to create greater efficiency due to the consolidation of operations, pooling and more effective utilisation of the combined resources of the said companies, reduction in overheads, costs and expenses, economies of scale, elimination of duplication of work and rationalization and reduction of compliance requirements.
The merger could strengthen the brand value of both companies by combining their reputations and unique selling propositions, leading to better market recognition and customer trust.
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Nazara Technologies is India's leading gaming and esports company, owning popular brands like NODWIN Gaming, Sportskeeda, Kiddopia, Animal Jam, World Cricket Championship, and Datawrkz. The company operates in India, the US, and other global markets, offering a diverse range of products and services, including esports, early learning games, casual games, and ad tech solutions.
The scrip jumped 2.25% to end at Rs 907.50 on Thursday, 14 November 2024.
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