Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q2 FY25 Earnings Presentation
48 slides from Nazara Technologies's earnings presentation, Nov 14, 2024
Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM November 14, 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 - 4
Slide 2: Investor Presentation Q2FY25
Investor Presentation Q2FY25
Slide 3: Safe Harbour
Nazara – PGConnects – Safe Harbour London 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 purc
Slide 4: Q2: Action filled quarter to set the stage for growth ahead
Nazara – PGConnects – Q2: Action filled quarter to set the stage for growth ahead London In H1 FY25, we achieved revenues of INR 569.0 crores, an EBITDA of INR 50.1 crores, and PAT from continued operations of INR 41.7 crores. Our focus remains on driving profitable growth through both organic initi
Slide 5: Key Updates
KEY UPDATES 4
Slide 6: M&A: Nazara invests INR 982 crores in Moonshine Technology
Nazara – 1 M&A: Nazara invests INR 982 crores in Moonshine Technology which owns India’s PGConnects – London leading Online Poker Gaming Platform ‘PokerBaazi’ • Nazara has announced the acquisition of a 47.7% stake in Moonshine Technology Private Limited (“MTPL” or “Moonshine”), the parent company o
Slide 7: Fund Raise: Raise of INR 900 crores to fund business acquisitions
Nazara – PGConnects – Fund Raise: We announced raise of INR 900 crores to fund business acquisitions London 2 • Nazara has announced a preferential equity issue to raise INR 900 crore from marquee investors such as SBI Mutual Fund, Junomoneta Finsol (an associate of Plutus Wealth), Think Investments
Slide 8: Corporate Action: Full ownership of PaperBoat Apps and Absolute Sports
Nazara – PGConnects – Corporate Action: Nazara takes full ownership of PaperBoat Apps and Absolute Sports London 3 • Nazara has acquired the remaining 48.42% stake in Paper Boat Apps for INR 300 crore, making it a wholly owned subsidiary • Nazara will merge PaperBoat Apps into the listed company and
Slide 9: M&A: Datawrkz acquired 100% stake in S&T
Nazara – PGConnects – M&A: Datawrkz, through its step-down subsidiary, acquired 100% stake in S&T London 4 Overview Transaction Structure • Datawrkz through its 100% owned step-down subsidiary Datawrkz • The total aggregate consideration of GBP 4.8 million (~INR 52.3 Operations UK Ltd acquired the 1
Slide 10: M&A: Nazara acquires 15.8% stake in esports firm Stan
Nazara – PGConnects – 5 M&A: Nazara acquires 15.8% stake in esports firm Stan for INR 18.4 crores London • Nazara acquired a 15.86% stake in esports community platform Stan for INR 18.4 crores in cash from its existing investors • Founded by Parth Chadha, Nauman Mulla and Rahul Singh, Stan is an esp
Slide 11: Our Strategy
OUR STRATEGY 10
Slide 12: Our M&A Strategy aims to scale our gaming business further
Nazara – PGConnects – London 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
Slide 13: Our Centres of Excellence support organized decentralization
Nazara – PGConnects – London Our Centres of Excellence support Nazara philosophy of organized decentralization Nazara Philosophy of 'Organized Establishing Centres of Excellence Scope of COEs Decentralization' (COEs) Balancing central support with COEs deliver services at a higher Broad coverage acr
Slide 14: A track record of successfully scaling assets within the group
Nazara – PGConnects – A track record of successfully scaling assets within the group London 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
Slide 15: Business well-diversified across demographics, geographies, and operating models
Nazara – PGConnects – Business well-diversified across demographics, geographies, and operating models London Revenue by Segment (Q2 FY25) EBITDA by Segment (Q2 FY25)* Adtech Adtech 6% Gaming 7% esports 36% 28% 66% Gaming 57% esports Revenue by Geography (Q2 FY25) Revenue by Business Model (Q2FY25)
Slide 16: Financial Update
FINANCIAL UPDATE 15
Slide 17: Action filled quarter, Gearing for growth in H2FY25
Nazara – PGConnects – Action filled quarter, Gearing for growth in H2FY25 London (All figures in INR Cr) Q2FY25 Q2FY24 YoY% H1FY25 H1FY24 YoY% Revenue from operations 318.9 297.2 7.3% 569.0 551.7 3.1% Purchase, Content, event and web server 129.9 130.5 214.9 216.8 Advertising and promotion 39.6 47.4
Slide 18: Q2FY25: Gaming margin at 18.3%, esports at 4.9%, Adtech at 7.5%
Nazara – PGConnects – Q2FY25: Gaming margin at 18.3%, esports at 4.9%, Adtech at 7.5% London Gaming esports Adtech Revenue: 114.1 Cr (9% YoY) Revenue: 181.8 Cr (+6% YoY) Revenue: 24.1 Cr (7% YoY) EBITDA: 20.9 Cr (-4% YoY) EBITDA: 8.9 Cr (-11% YoY) EBITDA: 1.8 Cr (30% YoY) EBITDA Margin: 18.3% EBITDA
Slide 19: H1FY25: Gaming margin at 17.0%, esports at 8.7%, Adtech at 5.0%
Nazara – PGConnects – H1FY25: Gaming margin at 17.0%, esports at 8.7%, Adtech at 5.0% London Gaming esports Adtech Revenue: 206.9 Cr (-3% YoY) Revenue: 313.6 Cr (+8% YoY) Revenue: 49.8 Cr (-1% YoY) EBITDA: 35.2 Cr (-28% YoY) EBITDA: 27.2 Cr (36% YoY) EBITDA: 2.5 Cr (-23% YoY) EBITDA Margin: 17.0% EB
Slide 20: Business Update
BUSINESS UPDATE 19
Slide 21: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 206.9 Cr Revenues: INR 313.6 Cr Revenues: INR 49.8 Cr EBITDA: 17.0% EBITDA: 8.7% EBITDA: 5.0% Note: Revenue and EBITDA for H1 FY25 20
Slide 22: Gaming: Building leading IPs to capture the large gaming market opportunity
Nazara – PGConnects – Gaming: Building leading IPs to capture the large gaming market opportunity London H1FY25: Revenue: INR 206.9 Cr EBITDA Margin: 17.0% Monetization Market Financials1 Brand / IP Sub-segment Demographics Key Market Model Positioning H1FY25, INR Cr Among Top Revenue: 97.8 Gamified
Slide 23: Gaming -> Kiddopia: Among Top Grossing App for Kids in the US
Nazara – PGConnects – Gaming -> Kiddopia: Among Top 3 Grossing* App for Kids (Under 5 years) in the US London Geographies: USA 79%; RoW 21% Gamified Audience: 2-8 years old Early Learning Revenue Model: Subscription Kiddopia Merchandise: Link Note: * Based on App Annie Top Grossing rank for Kids und
Slide 24: Gaming -> Kiddopia: Near term growth drivers
Nazara – PGConnects – Gaming -> Kiddopia: Near term growth drivers for Kiddopia London • Expanding Content with Global Kids IPs IP Licensing and o Kiddopia is in advanced discussions to license and integrate popular global kids' IPs within its platform Integration o Expected launch by Q1FY26 o IP in
Slide 25: Gaming -> Kiddopia: Focusing on growth
Nazara – PGConnects – Gaming -> Kiddopia: Focusing on growth London Q2 FY25: EBITDA margins at 24.3% Quarterly KPIs Figures in INR Cr 113.9 56.3 48.8 97.8 Key Metrics Q2FY24 Q3FY24 Q4FY24 Q1FY25 Q2FY25 22.9% 24.4% 25.5% 22.9% CPT1 ($) $38.9 $40.9 $39.0 $38.6 $40.9 Marketing Spend (Mn) $2.7 $2.3 $2.4
Slide 26: Gaming -> Fusebox: Nazara acquired Fusebox Games in August'24
Nazara – PGConnects – Gaming -> Fusebox: Nazara acquired Fusebox Games for INR 228 crores in August’24 London Q2FY25 Performance (post • Nazara has announced the acquisition a 100% stake in Fusebox Games Ltd, a well- consolidation) established IP based gaming studio in the United Kingdom. The total
Slide 27: Gaming -> Animal Jam: #1 Grossing App for Kids (9-11 years) in the US
Nazara – PGConnects – Gaming -> Animal Jam: #1 Grossing* App for Kids (9-11 years) in the US London Geographies: USA 90% RoW 10% 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
Slide 28: Gaming -> Animal Jam: Growing steadily; on track for acceleration
Nazara – PGConnects – Gaming -> Animal Jam: Growing steadily; on track for acceleration London Q2 FY25 : EBITDA margins at 16.3% - The core Animal Jam game is profitable and growing again. Product Figures in Rs. Cr metrics for retention, engagement and monetization of users are healthy. 43.9 47.6 24
Slide 29: Gaming -> Real Money Gaming: Classic Rummy + investment into Pokerbaazi
Nazara – PGConnects – Gaming -> Real Money Gaming: Classic Rummy + investment into Pokerbaazi London Quarterly GGR Trend (INR Crores) 18.6 16.7 17.3 1. New GST regime for the Real Money Gaming sector has significantly reduced 16.5 15.5 15.6 this segment's profitability since Oct 2023. While Gross Ga
Slide 30: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 206.9 Cr Revenues: INR 313.6 Cr Revenues: INR 49.8 Cr EBITDA: 17.0% EBITDA: 8.7% EBITDA: 5.0% Note: Revenue and EBITDA for H1 FY25 29
Slide 31: esports -> NODWIN Gaming: Platform set for growth in FY25
Nazara – PGConnects – esports -> NODWIN Gaming: Platform set for growth in FY25 London • NODWIN's Q2FY25 revenue grew by 4% compared to Q2FY24. However, the like-for-like revenue growth was 100%+ (111%, excluding revenue from Wings for Q2FY24 which was Figures in INR Cr Figures in INR Cr deconsolida
Slide 32: esports -> NODWIN Gaming: Powering the global youth culture movement
Nazara – PGConnects – esports -> NODWIN Gaming: Powering the global youth culture movement London CREATORS FANS ESPORTS COMEDY New ecosystems being built around youth passion GAMING FANS FESTIVALS points, unlocking value for stakeholders across the value chain POP MUSIC CULTURE PARTNERS 31
Slide 33: esports -> NODWIN Gaming: Well-positioned to capture the opportunity in youth entertainment
esports -> NODWIN Gaming: Well-positioned to capture the massive opportunity in Nazara – PGConnects – London youth entertainment Recognized as an established esports & live entertainment player with successful IPs & partnerships 1b+ 50+ 500+ 150m+ 1m+ Gamers Activated IPs executed Content Creators F
Slide 34: esports -> NODWIN Gaming: Gaming, esports & live entertainment changing youth entertainment
esports -> NODWIN Gaming: Gaming, esports & live entertainment are rapidly changing Nazara – PGConnects – London youth entertainment consumption patterns Key structural tailwinds driving the media & entertainment landscape Daily time spent on Gaming and OTT platforms globally INTERESTS & ENGAGEMENT
Slide 35: esports -> NODWIN Gaming: Exploiting this opportunity to power the youth culture movement
esports -> NODWIN Gaming: Exploiting this opportunity to power the youth culture Nazara – PGConnects – London movement 34
Slide 36: esports -> NODWIN Gaming: Tackling opportunities across multiple growth vectors
Nazara – PGConnects – esports -> NODWIN Gaming: Tackling opportunities across multiple growth vectors London 2016 Today Going Forward We will leverage our capabilities to We were gaming & esports, We have successfully expanded to youth become a global champion for youth India focused entertainment,
Slide 37: esports -> NODWIN Gaming: Market leader with global scale and comprehensive capabilities
esports -> NODWIN Gaming: Market leader with global scale and comprehensive Nazara – PGConnects – London capabilities 36
Slide 38: esports -> NODWIN Gaming: Seasonal Highlights of BGMI Master Series
Nazara – PGConnects – esports -> NODWIN Gaming: Scaling of IPs: Seasonal Highlights of BGMI Master Series London WINNERS AFTER 22 DAYS OF LAN 37
Slide 39: esports -> NODWIN Gaming: Global Acceleration of All That Matters
Nazara – PGConnects – esports -> NODWIN Gaming: Scaling of IPs: Global Acceleration of All That Matters London 7 Tracks 133 Speakers Dubai, Apr’24 Singapore, May’24 30+ Countries 60 Sessions Represented Hong Kong, Apr’24 Singapore 1000+ attendees 92% from 500+ Satisfaction companies Rate! 38
Slide 40: esports -> NODWIN Gaming: Broadcasting partner for Esports World Cup, Riyadh
esports -> NODWIN Gaming: Scaling of IPs: Broadcasting and production partner for Nazara – PGConnects – London Esports World Cup, Riyadh Global : Saudi X Germany X India Production & Broadcasting 19 Game Titles & 12 Languages covered 76 Team-Members, Across NODWIN & Freaks4U Gaming Global : Saudi X
Slide 41: esports -> Sportskeeda: Continued growth in H1FY25
Nazara – esports -> Sportskeeda: Continued growth in H1FY25: 22% revenue growth and 18% PGConnects – London EBITDA growth Revenue Growth: 11% in Q2 and 22% in H1 ▪ Absolute Sports (group) grew its revenue and EBITDA by 22% and 18% respectively in H1 FY25. Figures in INR Cr 45.9 106.8 41.4 41.7 98.7
Slide 42: esports -> Sportskeeda: Top 10 ranking amongst US sports news websites
Nazara – esports -> Sportskeeda: Continues to maintain Top 10 ranking amongst US sports news PGConnects – London websites Ranking of Sports Domains in the US in July-Sep’24 #1 X #2 #3 #4 #5 X #6 X #7 X #8 X Source: 1) Ranking as per Unique Visitors in the US as per Similarweb (Content Publishing Web
Slide 43: esports -> Sportskeeda: Applying the playbook to SoapCentral
Nazara – esports -> Sportskeeda: Successfully applying the Sportskeeda playbook to newer PGConnects – London acquisitions: SoapCentral ▪ Sportskeeda acquired SoapCentral.com in June 2024 for $1.4 Mn (~INR 11.6 Crores). In CY23, SoapCentral.com had revenues of USD 0.6 million (~INR 5.2 crores). ▪ The
Slide 44: Gaming esports Adtech
Gaming esports Adtech Revenues: INR 206.9 Cr Revenues: INR 313.6 Cr Revenues: INR 49.8 Cr EBITDA: 17.0% EBITDA: 8.7% EBITDA: 5.0% Note: Revenue and EBITDA for H1 FY25 43
Slide 45: Adtech -> Datawrkz: Gross Margin improves as high margin business grows
Nazara – Adtech -> Datawrkz: Gross Margin improves as contribution from high margin PGConnects – London business increases Figures in INR Cr Increasing Contribution Of High Margin Business Revenue* Gross profit* Gross margin% EBITDA* EBITDA% 28% 26% 32% 24.1 41% 37% 38% 22.5 46% 57% 68% 29.9% 28.4%
Slide 46: Consolidated Balance Sheet
Nazara – PGConnects – Consolidated Balance Sheet London (in INR Cr) Assets Sep-24 Mar-24 Property, Plant and Equipment 39.0 6.4 Goodwill & other intangible assets 1,222.5 601.7 Non-current Financial Assets & Other Assets 311.9 217.1 Income Tax & Deferred Tax Asset 17.8 14.1 Cash balance, Bank FDs an
Slide 47: Consolidated Cashflow Statement
Nazara – PGConnects – Consolidated Cashflow Statement London Particulars For H1 FY25 For FY24 (in INR Cr) Opening Cash Position (including investments and Bank deposits) 1.458.3 628.3 Profit before tax (from continued operations) 53.9 88.7 Non-cash items, non-operating items and others 18.2 46.5 Cha
Slide 48: Contact Us
Nazara – PGConnects – Contact Us London Company : Investor Relations Advisors : Nazara – PGConnects – London 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