Nazara Technologies reports 21.8% annual profit growth despite Q4 revenue dip

Nazara Technologies Limited reported a net profit of Rs 17.1 crore for Q4 FY24, a 43.6% increase compared to the same period in FY23. However, the company's operating revenue for the quarter decreased by 8% year-on-year to Rs 266.2 crore. For the full fiscal year ending March 31, 2024, Nazara's net profit increased by 21.8% to Rs 74.8 crore, up from Rs 61.4 crore in FY23. The company's revenue from operations for the entire fiscal year grew by 4.3% to Rs 1,138.3 crore.

Despite the overall revenue growth, Nazara faced challenges due to write-offs in several of its legacy businesses, including its real-money gaming business Halaplay, leading to a Q4 profit drop to Rs 0.18 crore. The company has been restructuring, merging, or closing entities not aligned with its future vision, such as Nazara Bangladesh and NZ Mobile Nigeria. EBITDA for the year increased by 16.6% to Rs 127.9 crore, and operating cash flow stood at Rs 131.4 crore.

Nazara has also announced the acquisition of a 100% stake in Nextwave Multimedia Private Limited, known for developing mobile cricket games under the World Cricket Championship franchise. Founder and CEO Nitish Mittersain highlighted key initiatives for FY24, including the launch of a new publishing platform, new game releases through existing studios, IP partnerships, and a strong M&A pipeline, setting a foundation for rapid future scaling.