Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q1 FY25 Earnings Presentation
41 slides from Nazara Technologies's earnings presentation, Aug 13, 2024
Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM August 13, 2024 To, Listing Compliance Department Listing Compliance Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Plot No. C/1. G Block, Dalal Street, Bandra -Kurla Complex, Bandra (East), Mumbai - 400
Slide 2: Investor Presentation Q1FY25
Investor Presentation Q1FY25
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by Nazara Technologies Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any sec
Slide 4: Q1: Setting the stage for accelerated growth in FY25
Q1: Setting the stage for accelerated growth in FY25 "In Q1 FY25, we achieved revenues of INR 250.1 crores, with an EBITDA of 24.9 crores and PAT of 23.6 crores. We are focused on driving profitable growth in FY25 and beyond via organic growth of our existing businesses as well as M&A, especially in
Slide 5: M&A Update
M&A UPDATE 4
Slide 6: Corporate Action: Nazara acquires 100% of PaperBoat Apps (developer of Kiddopia)
1 Corporate Action: Nazara acquires 100% of PaperBoat Apps (developer of Kiddopia) • Nazara Technologies Limited has announced the acquisition of an additional 48.42% stake in Paper Boat Apps Pvt. Ltd. (“Paper Boat Apps”), the developer and publisher of the popular children's app "Kiddopia", for an
Slide 7: Corporate Action: Acquisition of Fusebox Games for INR 228 crores (1/2)
2 Corporate Action: Acquisition of Fusebox Games for INR 228 crores (US$ 27.2mn) (1/2) • Nazara has announced the acquisition a 100% stake in Fusebox Games Ltd, a well- established IP based gaming studio in the United Kingdom. The total consideration is INR 228 Cr ($27.2Mn), including INR 42 Cr ($5
Slide 8: Corporate Action: Acquisition of Fusebox Games for INR 228 crores (2/2)
2 Corporate Action: Acquisition of Fusebox Games for INR 228 crores (US$ 27.2mn) (2/2) Strong Management Team • Strength of IP driven business: Due to the game's association with the highly popular Love Island IP, it attracts a significant amount of organic traffic. We expect to add more games based
Slide 9: Nazara's subsidiary NODWIN acquires 100% of Freaks 4U Gaming
3 Corporate Action: Nazara's subsidiary NODWIN acquires 100% of leading European esports company Freaks 4U Gaming • Germany-based Freaks 4U Gaming GmbH is a leading European esports organizer, reporting a revenue of INR 223 crores in CY23 (unaudited). It owns marquee esports IPs including Prime Leag
Slide 10: Corporate Action: Sportskeeda has acquired Deltia's Gaming
4 Corporate Action: Sportskeeda has acquired Deltia's Gaming • Sportskeeda has agreed in August 2024 to acquire Deltia’s Gaming, which produces quality content for a specific set of games (Baldur's Gate 3, Elder Scrolls Online, etc.) on platforms such as Youtube, Twitch and its own website. Coverage
Slide 11: Financial Update
FINANCIAL UPDATE 10
Slide 12: PAT growth of ~13% in Q1 FY25; Acquisitions to fuel growth ahead
PAT growth of ~13% in Q1 FY25; Acquisitions to fuel growth ahead (All figures in INR Cr) Q1FY25 Q1FY24 YoY% FY24 FY23 YoY% Revenue from operations 250.1 254.4 -1.7% 1,138.3 1,091.0 4.3% Purchase, Content, event and web server 85.0 86.3 470.3 450.9 Advertising and promotion 40.9 45.7 177.5 239.9 Comm
Slide 13: Q1FY25: Gaming margin at 15.4%, esports at 13.9%, Adtech at 2.7%
Q1FY25: Gaming margin at 15.4%, esports at 13.9%, Adtech at 2.7% Gaming esports Adtech Revenue: 92.8 (-15% YoY) Revenue: 131.9 (+12% YoY) Revenue: 25.7 Cr (-7% YoY) EBITDA: 14.3 (-47% YoY) EBITDA: 18.3 (+85% YoY) EBITDA: 0.7 Cr (-62% YoY) EBITDA Margin: 15.4% EBITDA Margin: 13.9% EBITDA Margin: 2.7%
Slide 14: Our Strategy
OUR STRATEGY 13
Slide 15: Clear focus on the large and growing Gaming market
Clear focus on the large and growing Gaming market 14
Slide 16: Our M&A Strategy aims to scale our gaming business further
Our M&A Strategy aims to scale our gaming business further M&A in • Within mobile Gaming, we typically acquire games and studios which are already profitable and have strong IPs which Gaming we can help to scale up further. Segment • We also look at opportunities in new tech, including web3, Roblox
Slide 17: Track record of successfully scaling assets after we acquire them
Track record of successfully scaling assets after we acquire them FY24 FY24 FY24 Revenues: Revenues: Revenues: 426.5 Cr 196.0 Cr 219.4 Cr 25x in 14x in 4x in 6 years 4 years 4 years Mar’24 Mar’24 Subs: 256K FY20 MAU: FY20 FY18 Mar’23 73 mn Revenues: MAU: 71 Revenues: Among Top 3 Revenues: Grossing A
Slide 18: Well-diversified business across demographics, geographies, and operating models
We have developed a well-diversified business across demographics, geographies, and operating models Revenue by Segment (Q1 FY25) EBITDA by Segment (Q1 FY25)* Adtech 2% Adtech Gaming 10% esports 37% 43% 55% Gaming 53% esports Revenue by Geography (Q1 FY25) Revenue by Business Model (Q1 FY25) Platfor
Slide 19: Business Update
BUSINESS UPDATE 18
Slide 20: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 92.8 Cr Revenues: INR 131.9 Cr Revenues: INR 25.7 Cr EBITDA: 15.4% EBITDA: 13.9% EBITDA: 2.7% Note: Revenue and EBITDA for Q1 FY25 19
Slide 21: Gaming: Building leading IPs to capture the large gaming market opportunity
Gaming: Building leading IPs to capture the large gaming market opportunity Q1FY25: Revenue: INR 92.8 Cr EBITDA Margin: 15.4% Monetization Market Financials Brand / IP Sub-segment Demographics Key Market Model Positioning Q1FY25, INR Cr Among Top Revenue: 49.0 Gamified Early Kids- 2-7 years of US (8
Slide 22: Gaming -> Kiddopia: Among Top 3 Grossing App for Kids
Gaming -> Kiddopia: Among Top 3 Grossing* App for Kids (Under 5 years) in the US Geographies: USA 80+%; RoW 20% Gamified Audience: 2-8 years old Early Learning Revenue Model: Subscription Kiddopia Merchandise: Link Note: * Based on App Annie Top Grossing rank for Kids under 5 in the United States (i
Slide 23: Gaming -> Kiddopia: Stabilized a number of KPIs; seeking growth
Gaming -> Kiddopia: Stabilized a number of KPIs; seeking growth Q1 FY25: EBITDA margins at 21.4% Quarterly KPIs Figures in Rs. Cr 57.6 50.9 49.0 Key Metrics Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q1FY25 28.0% 23.0% 21.4% CPT1 ($) $39.3 $38.9 $40.9 $39.0 $38.6 16.1 Marketing Spend (Mn) $2.6 $2.7 $2.3 $2.4 $2.4
Slide 24: Gaming -> Animal Jam: #1 Grossing App for Kids (9-11 years) in the US
Gaming -> Animal Jam: #1 Grossing* App for Kids (9-11 years) in the US Geographies: USA 80% RoW 20% Gamified Early Learning Audience: 8-12 years old (Majority girls) Revenue Model: IAP, Subscription Note: Ranking Based on App Annie Top Grossing rank for Kids between 9-11 years in the United States (
Slide 25: Gaming -> Animal Jam: Revenue up by 7%; record single-day revenue
Gaming -> Animal Jam: Revenue up by 7%; record single-day revenue of US$106K Q1 FY25 : EBITDA margins at 16.2% The core Animal Jam business is growing and profitable. Our focus in FY25 Figures in Rs. Cr will be on continuing to grow this business while starting work on a major 23.6 new game to be be
Slide 26: Gaming -> Classic Rummy: Operational improvements to mitigate impact of new GST regime
Gaming -> Classic Rummy: Operational improvements to mitigate impact of new GST regime Quarterly GGR Trend (INR million) 186.3 New GST regime since 1st Oct 2023 has significantly reduced Real Money Gaming 173.2 166.7 segment's profitability. While Gross Gaming Revenues have declined only slightly 15
Slide 27: Gaming -> Nazara Publishing: FAU-G Domination
Gaming -> Nazara Publishing: FAU-G Domination FAU-G Domination, developed by Dot9 Games and nCore Games is the reboot to FAU-G, India's most successful home-grown shooter game which had garnered over 40M Downloads. Nazara Publishing has taken on exclusive global publishing rights for FAU-G Dominatio
Slide 28: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 92.8 Cr Revenues: INR 131.9 Cr Revenues: INR 25.7 Cr EBITDA: 15.4% EBITDA: 13.9% EBITDA: 2.7% Note: Revenue and EBITDA for Q1 FY25 27
Slide 29: esports -> NODWIN Gaming: Platform set for growth in FY25
esports -> NODWIN Gaming: Platform set for growth in FY25 Figures in INR Cr Figures in INR Cr • NODWIN's Q1 FY25 revenue grew by 3% compared to Q1 FY24. However, the +3% +35% like-for-like revenue growth was 35%+ (excluding revenue from Wings for Q1 FY24 which was deconsolidated from 3rd Feb 2024).
Slide 30: esports -> NODWIN Gaming: Busy calendar of events ahead in Q2FY25
esports -> NODWIN Gaming: Busy calendar of events ahead in Q2FY25 ASIA, MIDDLE-EAST & AFRICA EUROPE & TURKEY . 29
Slide 31: esports -> NODWIN Gaming: dominant player in esports and new age youth media
esports -> NODWIN Gaming: dominant player in esports and new age youth media FY24 30
Slide 32: esports -> NODWIN: Category pioneer & leader in new age youth media
esports -> NODWIN: Category pioneer & leader in new age youth media Why do we do it How do we do it Who do we do it for Motivated by our Vision & Mission Timeshare of Mindshare Youth, Profiled Below Demographic Ages between 16-34 VISION with an even split between genders To become an IP led media co
Slide 33: NODWIN Gaming: Freaks4U acquisition increases access to high ARPU revenue pools
esports -> NODWIN Gaming: Freaks4U acquisition increases access to high ARPU revenue pools, delivered partly from cost competitive geographies 32
Slide 34: esports -> Sportskeeda: Continued growth: 33% revenue and 28% EBITDA growth
esports -> Sportskeeda: Continued growth: 33% revenue and 28% EBITDA growth Figures in INR Cr Figures in INR Cr +33% +60% Revenue Split by Sports Revenue Split by Geography 60.9 57.0 57.0 196.0 6.1 45.80 43.2 19.0 43.2 122.4 33.1% 33.9% 32.4% 6.0 15.7 31.7% 7.9 19.8 64.8 7.1 7.4 15.50 38.8 13.2 12.8
Slide 35: Sportskeeda: Pro Football Network has focused on growing its suite of tools
esports -> Sportskeeda: Pro Football Network has focused on growing its suite of tools ahead of the NFL season which starts in September MARKET-LEADING NFL PLAYOFF PREDICTOR CONTINUES TO DOMINATE The NFL Playoff Predictor tool, meant to predict games in each NFL season, has widely been recognized as
Slide 36: Sportskeeda has acquired SoapCentral.com
esports -> Sportskeeda: Sportskeeda has acquired SoapCentral.com Sportskeeda acquired Soap Central.com in June 2024 for $1.4 Mn (~ INR 11.6 Crores). In CY23, Soap Central.com had revenues of USD 0.6 million (~INR 5.2 Coverage of 4 major US crores). This fits well with Absolute daily soaps Sports's o
Slide 37: Sportskeeda has acquired Deltia's Gaming
esports -> Sportskeeda: Sportskeeda has acquired Deltia's Gaming Sportskeeda has agreed in August 2024 to acquire Deltia’s Gaming, which produces quality content for a specific set of games (Baldur's Gate 3, Elder Scrolls Online, etc.) on platforms such as Youtube, Twitch and its own website. Covera
Slide 38: Sportskeeda: Absolute Sports Content Strategy - Category Expansion
esports -> Sportskeeda: Absolute Sports Content Strategy - Category Expansion High Potential transaction perimeter Esports Strategic Vector for Absolute Sports & gaming Content diversification US Pop-culture High RPM US sports High RPM Low RPMs India sports Low Low High Segment Yields Increased Cont
Slide 39: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 92.8 Cr Revenues: INR 131.9 Cr Revenues: INR 25.7 Cr EBITDA: 15.4% EBITDA: 13.9% EBITDA: 2.7% Note: Revenue and EBITDA for Q1 FY25 38
Slide 40: Adtech -> Datawrkz: Gross Margin improves as high margin business grows
Adtech -> Datawrkz: Gross Margin improves as contribution from high margin business increases Figures in INR Cr Revenue* Gross profit* Gross margin% EBITDA* EBITDA% Increasing Contribution Of High Margin Business 27.6 15% 25.7 28% 26% 32% 41% 37% 38% 46% 57% 28.4% 22% 85% 72% 74% 68% 6.2 6.7% 7.3 59
Slide 41: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited CIN: U72900MH1999PLC122970 Valorem Advisors Private Limited Mr. Rakesh Shah Chief Financial Officer Mr. Anuj Sonpal Ms. Anupriya Sinha Das Valorem Advisors Head of Corporate Development Tel: +91-22-4903 9500 Email: nazara