Q4 revenue growth was affected due to seasonality, strong revenue, and profitability growth in FY22 | Nazara Technologies Q4 FY22 Conference Call Highlights

• Q4 earnings flat due to seasonality in business. Revenue from operations increased by about 42% to Rs 175.1 crore during the reported quarter from Rs 123.4 crore in Q4FY21. 17% increase in consolidated profit to Rs 4.9 crore for the quarter ended March 2022. The company had posted a profit of Rs 4.2 crore in Q4FY21.
• In FY22, revenue generated is of Rs. 621.7 Cr, up 37% YoY, EBIDTA of Rs. 94.6 Cr, up 109% YoY, and PAT of Rs. 50.7 Cr, up 273% YoY.
• Over the last three years, eSports has seen a 90%+ revenue CAGR, with Nodwin growing by over 65% and Sportskeeda growing by over 130%. This segment now contributes the highest revenue in Nazara portfolio with 49% contribution in FY22 revenue vs 37% in FY21.
• Gamified Early Learning:  Despite the impact of Apple IDFA in Q1FY22, have grown 16% YoY in FY22
• Skilled based Real Money Gaming: Company is in process of integrating HalaPlay and OpenPlay into one common tech platform, continuing the endeavour of building the segment through consolidation. With the lifting of the Karnataka restrictions in February, company saw a good trend that will enhance revenue even more. Since the lifting of restrictions, losses have reduced by 15-20% There has been a sequential uptick in EBITDA. Company has delivered a positive EBITDA of Rs. 1.8 Cr for Q4FY22 despite the Karnataka restrictions. However, in the full year there was an EBITDA loss of Rs. 10 Lakh which is much lower compared to loss of Rs. 9 Cr in FY21.
• Freemium: Exploring levers of growth in web 2.0 as well as web 3.0 to scale revenues in this segment and are continuously looking at strategic M&A opportunities to add more IPs to this portfolio.
• “There are over 14 eSports broadcast platforms in 2020 which are expected to cross 20 platforms by 2025. While current viewership is 1.7 Cr, over 8.5 Cr unique viewers will watch eSports tournaments in the country by 2025. This will comprise around 10% of global eSports viewership. Viewership across multiple streaming platforms such as YouTube, Facebook, Twitch and other OTT platforms will collectively measure much higher- FICCI.
• “In 2021, gaming leveled up emerging as a rich and diverse ground for storytelling and community building. In fact, a 5-hour long gaming livestream of the FreeFire World Series Final in 2021, became one of the most popular videos in India this year, “Youtube India.
• “The total size of India’s eSports industry will touch Rs 1100 crore by FY25 and the growth will come on the back of cricket as more and more companies are focusing towards developing the eSports ecosystem in India” Federation of Electronic Sports Associations of India (FEAI).
• Acqusitions in Jan 22- Datawrkz and Planet Superheros. Datawrkz is a leading advertising technology provider for publishers, agencies, and brands. Planet Superheros is in the business of manufacturing and selling licensed character merchandise, apparels, collectibles, accessories and other merchandise services in India.
• The Company has cash and bank balance (including liquid investment) of Rs. 723.1 Cr as of 31st March 2022.

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