Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q1 FY23 Earnings Presentation
27 slides from Nazara Technologies's earnings presentation, Jul 31, 2022
Slide 1: Intimation of updated Investor Presentation to stock exchanges
Nazara Technologies Limited Nazara TM July 31, 2022 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, Mumbai - 400 001. Bandra -Kurla Complex, Bandra (Eas
Slide 2: Investor Presentation Q1 FY23
Nazara Technologies Limited Investor Presentation Q1 FY23
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: Nazara: Well entrenched across gaming and eSports value chains
Nazara: Well entrenched across gaming and eSports value chains eSports Value Chain Game Rights ESports Content Broadcasting Content Publisher Content platform (OTT, User + Developer $ $ Provider TV, Digital) Creates IPs, Watches eSports Owns games Streams eSports provides eSports content; buys right
Slide 5: Nazara: Successfully scaled assets across key business segments
Nazara: Successfully scaled assets across key business segments eSports Gaming and Gamified Early Learning Ad-tech Leading New Age Sports Media Platform Among Top 10 Largest #1 eSports Company in #2 in Grossing Apps in the World’s largest cricket US headquartered global Sports Destinations in the In
Slide 6: Nazara: Operating in large addressable markets
Nazara: Operating in large addressable markets Globally gaming is larger than music and movies Massive rise in eSports adoption in India Global Advertising is a $700+ bn industry (US$tn) eSports players doubled in 2021 818 739 779 ‘000s (#) 679 0.3 1000 0.2 x ~5 0 600 259 292 310 323 0.1 300 0 80 20
Slide 7: Nazara: Clearly identified multi-pronged growth strategy to capture the opportunity
Nazara: Clearly identified multi-pronged growth strategy to capture the opportunity Organic Growth Inorganic Growth eSports Gamified Early Learning Real Money Gaming Freemium and Gamified Early Learning Nodwin Gaming: • Strong product and high consumer • Original Content and IPs to drive • Continue
Slide 8: Nazara: Demonstrated track record of growth and profitability
Nazara: Demonstrated track record of growth and profitability Revenue (in Rs. Mn)* Revenue Mix (Q1 FY23) Freemium Telco subscription 6,217 2,231 Real money gaming 7% 58% CAGR 57% CAGR 6% 3% 4,542 1,312 Adtech 14% 46% eSports 2,475 905 24% Gamified early learning FY20 FY21 FY22 Q1FY21 Q1FY22 Q1FY23 E
Slide 9: Q1FY23 Highlights: Outstanding revenue growth of 70%, EBITDA of Rs. 301 Mn
Q1FY23 Highlights: Outstanding revenue growth of 70%, EBITDA of Rs. 301 Mn (All figures in Rs. Mn) Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% Firing up all growth engines: Revenue by business • eSports: Growth in IPs and media rights led to 68% YoY segments growth in Nodwin Gaming. Strong MAU growth, especially
Slide 10: Individual Company Performance
Individual Company Performance
Slide 11: Nodwin Gaming: On a path of consistent high growth - 68% YoY revenue growth
1 Nodwin Gaming: On a path of consistent high growth - 68% YoY revenue growth in Q1FY23 Figures in Rs. Mn Revenue EBITDA EBITDA % • Nodwin Gaming revenues grew by 68% YoY in Q1FY23. This increase is driven by: 1) Distribution led organic growth in own IPs 2) Increased 64% CAGR monetization across al
Slide 12: Nodwin Gaming: Has a dominant presence across the eSports value pyramid
1 Nodwin Gaming: Has a dominant presence across the eSports value pyramid Prize Level Target Audience Venues MUMBAI From zero NODWIN International to hero Mega Prizes & Mass Market Mega Arenas GAMING / VCC Stages White-label INDIA Large Prizes & Small/ National Enthusiasts Stages Medium Arenas Grass
Slide 13: Nodwin Gaming: Comprehensive offerings for partners provides a strong moat
1 Nodwin Gaming: Comprehensive offerings for partners across the ecosystem provides a strong moat Publishers (want to engage gamers) Brands (want to reach consumers) Offering: Conceptualize, develop, market and Offering: Brand sponsorships in IPs + consulting produce IPs (Owned / Joint / White Label
Slide 14: Nodwin Gaming: Clear roadmap for future growth
1 Nodwin Gaming: Clear roadmap for future growth Original content and IPs will be the driver for increased media rights monetization Rights – Global and Local Franchised Leagues Monopoly On Top Games Build a Deep and Varied Language First Broadcast Rights Content Library § Acquire global and § Start
Slide 15: Nodwin Gaming: Inorganic playbook integral to growth strategy
1 Nodwin Gaming: Inorganic playbook integral to growth strategy with clear demonstration of highly successful integrations Gaming related Influencer Ecosystem Gaming and Esports merchandise Management Content IPs Gaming accessories Sep-2021 Sep-2021 Dec-2021 Apr-2022 Robust M&A strategy to expand of
Slide 16: Sportskeeda: Revenue growth of 103% in Q1FY23, revenues from US grew 5x
2 Sportskeeda: Revenue growth of 103% in Q1FY23, revenues from US grew 5x Figures in Rs. Mn Revenue EBITDA EBITDA % Revenue Split by Sports Revenue Split by Geography 300 300 223% CAGR 68 36 300 32 92 148 148 15 97 34.0% 29 45 148 29 43.9% 102 28 171 1 104 5 28 71 65 2 3 76 3 14.3% 22 33 28 19 4 Q1F
Slide 17: Sportskeeda: Top multi-sports destination, has ~50% international audience
2 Sportskeeda: Top multi-sports destination, has ~50% international audience Leadership position in multiple sports Audience Demographics (Q1FY23) Comscore Ranking (US Sports Destinations) MAU Split by Geography 19% US #1 30% India ~50% International Rank #10 Traffic; India and US Others the largest
Slide 18: Kiddopia: Strong product and high consumer propensity to pay; Unit Economics stabilised
3 Kiddopia: Strong product and high consumer propensity to pay allowed price increase; Unit Economics stabilised Strong Product: Kiddopia is #2 grossing app in its category, Unit Economics improve: Effect of higher CPT post IDFA changes compensated by price continues to maintain high rating increase
Slide 19: Datawrkz: Strong revenue growth of 65% in Q1FY23
4 Datawrkz: Strong revenue growth of 65% in Q1FY23 § Founded in 2013 by Senthil Govindan, Datawrkz is a global advertising Figures in Rs. Mn Revenue* EBITDA* EBITDA % technology firm focused on accelerating user and revenue growth for clients through highly optimised digital advertising 65% CAGR § T
Slide 20: Datawrkz: Digital driving growth in $700 bn advertising market
4 Datawrkz: Digital driving growth in $700 bn advertising market; gaming cos. becoming new home for ad-tech players globally Digital driving growth in advertising spends globally Gaming cos. leverage Adtech for first party data § In 2022, gaming companies are making their Share of Digital (Globa) sa
Slide 21: RMG: With Openplay acquisition, we have bolstered presence in this segment
5 RMG: With Openplay acquisition, we have bolstered presence in this segment HalaPlay Revenue EBITDA EBITDA % Monthly Active Users OpenPlay Revenue 50,000 30,745 39,981 22,533 25,854 24,169 27,194 Figures in Rs. Mn 1 138 0 2 Mar-21 Jun-21 Sep-21 Dec-21 Mar-22 Jun-22 125 16.7% Monthly Active users 18
Slide 22: RMG: Looking at consolidation led scaling as statutory clarity emerges
5 RMG: Looking at consolidation led scaling as statutory clarity emerges Over the course of last year, the Union Government has focused its attention on the Online Skill Gaming industry. Hon’ble Prime Minister, Shri Narendra Modi has acknowledged the potential of the gaming industry to become a glob
Slide 23: Freemium: Revenue growth of 28%, while EBITDA grows by 73% in Q1FY23
6 Freemium: Revenue growth of 28%, while EBITDA grows by 73% in Q1FY23 Q1FY23 Geographical Split Figures in Rs. Mn Revenue EBITDA EBITDA % Daily Engagement (MAU) (in minutes) 45 41 1 .1 0 x 74 58 35.1% WCC 2 WCC 3 South Asia 30% 25.9% 26 IAP conversion 0.10% India 15 (% DAUs) 3 .3 3 x 66% 0.03% Q1FY
Slide 24: Telco Subscription: Revenue of Rs. 150 mn, with EBITDA of Rs. 45 mn
6 Telco Subscription: Revenue of Rs. 150 mn, with EBITDA of Rs. 45 mn in Q1FY23 Figures in Rs. Mn Revenue EBITDA EBITDA % § For Q1FY23, the business has declined by 16% over Q1FY22 § The drop in revenue was mainly due to decline in revenue from India Business while revenue from the Non-Indian geogra
Slide 25: Consolidated Financials
Consolidated Financials
Slide 26: Consolidated revenue growth of 70%, PAT growth of 22% in Q1FY23
Consolidated revenue growth of 70%, PAT growth of 22% in Q1FY23 (All figures in Rs Mn) Q1FY23 Q1FY22 YoY% Q4FY22 QoQ% FY22 Revenue from operations 2,231 1,312 70% 1,751 27% 6,217 Content, event and web server 712 213 534 1,396 Advertising and promotion 650 424 516 2,017 Commission 121 137 122 504 Em
Slide 27: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited CIN: U72900MH1999PLC122970 Strategic Growth Advisors Private Limited CIN: U74140MH2010PTC204285 Mr. Rakesh Shah Chief Financial Officer Rahul Agarwal / Ami Parekh Ms. Anupriya Sinha Das rahul.agarwal@sgapl.net / ami.parek