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earnings | IST

Expect margin to normalise in the coming quarters as focus to remain on growth, says Nazara Tech

Nazara Technologies is back in the black and the company’s revenue during the quarter ended June 2021 saw a 45 percent growth led by e-sports and Gamified Early Learning. The e-sports segment’s revenue doubled to Rs 53.2 crore, while that of Gamified Early Learning segment grew about 46 per cent to Rs 52.1 crore in the June 2021 quarter from the year-ago period.

Nazara Technologies is back in the black and the company’s revenue during the quarter ended June 2021 saw a 45 percent growth led by e-sports and Gamified Early Learning. The e-sports segment’s revenue doubled to Rs 53.2 crore, while that of Gamified Early Learning segment grew about 46 per cent to Rs 52.1 crore in the June 2021 quarter from the year-ago period.
The company’s key growth drivers were Gamified Early Learning with the Kiddopia app along with eSports businesses, Nodwin and Sportskeeda.
“We are able to deliver the growth alongside profit and without burning money. Our margins got lifted significantly because of muted advertising spends on our Kiddopia learning business. But we will continue to focus on growth rather than margin optimization. Our margins came in very high this quarter at 22 percent but I think they will normalise over the years,” said Nitish Mittersain, Founder & Joint MD, Nazara Technologies.
On Kiddopia business, Mittersain said that the privacy changes that happened in the first quarter of this year impacted the company’s ability to spend or acquire consumers using most of the large ad networks like Google.
“What I expect to happen is that in the next quarter or so, many of our marketing channels that got impacted due to these changes will also normalise and that will increase the breadth of options and channels that we have. Hopefully for the remainder of the year. This will give us a lot more opportunity to scale up this business and profitability,” he said.
Mittersain believes eSports is a potentially very large market and the competition here is only going to help grow the market.
“We are not very worried about the competition. Nazara has a multi-pronged approach to eSports. We already are the largest tournament organizer. We own several IPs that are becoming more and more important within the esports tournament. Nodwin gaming is a subsidiary of ours and our eSports revenues have grown 100 percent year on year, between the tournament's and the content that we develop,” Mittersain added.
For full management commentary, watch the video.