Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q4 FY24 Earnings Presentation
36 slides from Nazara Technologies's earnings presentation, May 25, 2024
Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM May 24, 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 00
Slide 2: Investor Presentation FY24 and Q4FY24
Investor Presentation FY24 and Q4FY24
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: Surge in Operating Cash Flow in FY24; stage set for growth acceleration
2024: Surge in Operating Cash Flow to INR 131.4 in FY24; Stage set for acceleration in growth going ahead FY24 has been a year of building a strong foundation for rapid future scaling. We achieved a 4.3% revenue growth and a 16.5% EBITDA growth, with our margin improving by 110 bps YoY to 11.2%. Not
Slide 5: Action taken in 2024 to accelerate future growth
Action taken in 2024 to accelerate future growth Strengthened cash position Nazara and its subsidiaries have raised INR 950 crore from prominent strategic and financial investors, which is being primarily allocated for M&A as well as strategic growth initiatives Developed new Operating model – more
Slide 6: 11.2% EBITDA margin, improvement of 110 bps over FY23
11.2% EBITDA margin, an improvement of 110 bps over FY23; EBITDA and PAT1 growth of ~17% and 41% respectively in FY24 (All figures in INR Cr) Q4FY24 Q4FY23 YoY% FY24 FY23 YoY% Revenue from operations 266.2 289.3 -8.1% 1,138.3 1,091.0 4.3% Purchase, Content, event and web server 109.2 130.2 470.3 450
Slide 7: FY24: Improving Margin Profile across Gaming and esports segments
FY24 : Improving Margin Profile across Gaming and esports segments Gaming esports Adtech Revenue: 406.5 (+0% YoY) Revenue: 631.7 (+19% YoY) Revenue: 103.8 Cr (-32% YoY) EBITDA: 80.9 (+13% YoY) EBITDA: 63.0 (+51% YoY) EBITDA: 8.3 Cr (-39% YoY) EBITDA Margin: 19.9% EBITDA Margin: 10.0% EBITDA Margin:
Slide 8: Q4FY24: Gaming margin at 17.4%, esports at 12.6%, Adtech at 6.0%
Q4FY24: Gaming margin at 17.4%, esports at 12.6%, Adtech at 6.0% Gaming esports Adtech Revenue: 91.1 (-17% YoY) Revenue: 148.2 (+6% YoY) Revenue: 27.5 Cr (-29% YoY) EBITDA: 15.8 (-22% YoY) EBITDA: 18.6 (+71% YoY) EBITDA: 1.7 Cr (-37% YoY) EBITDA Margin: 17.4% EBITDA Margin: 12.6% EBITDA Margin: 6.0%
Slide 9: Our Strategy
OUR STRATEGY 8
Slide 10: Nazara is well diversified across demographics, geography and business models
Nazara is well diversified across demographics, geography and business models Revenue by Segment (FY24) EBITDA by Segment (FY24)* Adtech Adtech Gaming 6% 9% esports 36% 41% 53% Gaming 55% esports Revenue by Geography (FY24) Revenue by Business Model (FY24) Rest of the IAP , 12% World Platform Subscr
Slide 11: Track record of successfully scaling assets to leadership positions
Track record of successfully scaling assets to leadership positions FY24 FY24 FY24 Revenues: Revenues: Revenues: 427.1 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 73.2 mn Revenues: MAU: 71 Revenues: Among Top 3 Revenues: Grossi
Slide 12: Gaming, esports, Adtech
Gaming esports Adtech Revenues: INR 406.5 Cr Revenues: INR 631.7 Cr Revenues: INR 103.8 Cr EBITDA: 19.9% EBITDA: 10.0% EBITDA: 8.0% Note: Revenue and EBITDA for FY24; 11
Slide 13: Gaming: Building leading IPs to capture the large gaming market opportunity
Gaming: Building leading IPs to capture the large gaming market opportunity FY24: Revenue: INR 406.5 Cr EBITDA Margin: 19.9% Monetization Market Financials Brand / IP Sub-segment Demographics Key Market Model Positioning FY24, INR Cr Among Top Revenue: 219.4 Gamified Early Kids- 2-7 years of US (80%
Slide 14: Gaming -> Kiddopia: Among Top Grossing App for Kids in the US
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 15: Gaming -> Kiddopia: EBITDA growth of 57% in FY24
Gaming -> Kiddopia: EBITDA growth of 57% in FY24 FY24: EBITDA margins at 25.6% Quarterly KPIs Key Metrics Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 220.6 219.4 CPT1 ($) $35.9 $39.3 $38.9 $40.9 $39.0 57.7 50.9 Marketing Spend (Mn) $3.2 $2.6 $2.7 $2.3 $2.4 23.0% 25.6% 18.4% 16.2% Avg. Activation Rate 68% 68%
Slide 16: 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 17: Gaming -> Animal Jam: Revenue and EBITDA up in FY24
Gaming -> Animal Jam: Revenue and EBITDA up in FY24 FY24: EBITDA margins at 19.8% The core Animal Jam business is now stable and profitable. Our focus in FY25 will be on continuing to grow this business while starting work on a major new game to be beta-launched during FY25 • Q4 revenue was bolstere
Slide 18: Gaming -> WCC: Nazara taking 100% ownership
Gaming -> WCC: Nazara taking 100% ownership Nazara is acquiring the balance 28.12% of Nextwave that it didn't already own. The transaction will be a secondary purchase from the former promoters of Nextwave, via a mix of cash and equity (subject to shareholder and regulatory approvals). Post completi
Slide 19: Gaming -> WCC: Reinventing the franchise to position it for future growth
Gaming -> WCC: Reinventing the franchise to position it for future growth Geographical Split Revenue Split 23.7 (Revenue Q4FY24) (Q4FY24) 5.0 21.9 3% 3.9 21% 19% 6.3 0.7 4.0 76% 81% -0.3 Q4FY23 Q4FY24 FY23 FY24 Figures in Rs. Cr Revenue EBITDA EBITDA% USA India ROW Ad Revenue Others • Over FY24, Nex
Slide 20: 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 (In INR Million) Impact of new GST regime which kicked in on 1st Oct 2023: Since then, the entire Real Money Gaming segment has been struggling with profitability. 179.2 186.3 166.7 173.2 While
Slide 21: Gaming, esports, Adtech
Gaming esports Adtech Revenues: INR 406.5 Cr Revenues: INR 631.7 Cr Revenues: INR 103.8 Cr EBITDA: 19.9% EBITDA: 10.0% EBITDA: 8.0% Note: Revenue and EBITDA for FY24 20
Slide 22: esports -> NODWIN Gaming: dominant player in e-sports and new age youth media
esports -> NODWIN Gaming: dominant player in e-sports and new age youth media 21
Slide 23: 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 24: esports -> NODWIN Gaming: Access to high ARPU revenue pools, delivered cost competitively
esports -> NODWIN Gaming: Access to high ARPU revenue pools, delivered cost competitively 23
Slide 25: esports -> NODWIN Gaming: Comic Con India Acquisition
esports -> NODWIN Gaming: Comic Con India Acquisition leading to expansion of capabilities into adjacencies • NODWIN Gaming acquired a 100% stake in Comic Con India for INR 550 million • With this buyout, NODWIN not only looks to diversify its youth portfolio but also to strategically expand its pre
Slide 26: esports -> NODWIN Gaming: Playground Season 3 seeing impressive success
esports -> NODWIN Gaming: Playground Season 3 seeing impressive success • Since its premiere on Amazon MiniTV, Playground Season 3 has captivated audiences nationwide, garnering impressive success metrics across all platforms. • The show has reached over 25 million unique viewers across all touchpoi
Slide 27: esports -> NODWIN Gaming: Platform set for growth in FY25
esports -> NODWIN Gaming: Platform set for growth in FY25 Figures in INR Cr +10% Media Revenue (INR Crs.) 70 81 427.1 388.7 Content Views (In Mn) 327 108.5 462 99.1 4.5% 5.7% Distribution (100 hours) 124 115 4.9 5.6 7.1 Partners 201 -0.2 163 Q4FY23 Q4FY24 FY23 FY24 Revenue EBITDA EBITDA% FY24 FY23 #
Slide 28: esports -> Sportskeeda: Ranking amongst US sports news provider websites
esports -> Sportskeeda: Continues to maintain / improve ranking amongst US sports news provider websites Ranking of Sports Domains in the US in Dec’23 Ranking of Sports Domains in the US in Feb’24 #1 X #1 X #2 #2 #3 #3 #4 #4 #5 X #5 X #6 X #6 X #7 X #7 X #8 X #8 X Source: 1) Ranking as per Unique Vi
Slide 29: esports -> Sportskeeda: Nazara's M&A playbook to grow Pro Football Network
esports -> Sportskeeda: Sportskeeda has successfully deployed Nazara's M&A playbook to grow Pro Football Network since its acquisition • Pro Football Network was acquired by Sportskeeda in March 2023, at which point it was growing fast but unprofitable • Since then, Sportskeeda has worked closely wi
Slide 30: esports -> Sportskeeda: 60% revenue and 67% EBITDA growth
esports -> Sportskeeda: Continued strong growth: 60% revenue and 67% EBITDA growth Figures in INR Cr Figures in INR Cr +67% +60% Revenue Split by Sports Revenue Split by Geography 49.0 196.0 196.0 196.0 122.4 33.1% 24.7 28.60 26.5% 67.3 27.3% 31.7% 35.9 64.8 122.4 122.4 13.0 38.8 7.81 24.3 32.3 12.5
Slide 31: Gaming, esports, Adtech
Gaming esports Adtech Revenues: INR 406.5 Cr Revenues: INR 631.7 Cr Revenues: INR 103.8 Cr EBITDA: 19.9% EBITDA: 10.0% EBITDA: 8.0% Note: Revenue and EBITDA for 9MFY24 30
Slide 32: Adtech -> Datawrkz: EBITDA margin of 8.0% in FY24
Adtech -> Datawrkz: EBITDA margin of 8.0% in FY24 as contribution from high margin business increases Figures in INR Cr Revenue* Gross profit* Gross margin% EBITDA* EBITDA% Increasing Contribution Of High Margin Business 15% 28% 26% 32% 41% 37% 38% 46% 153.2 39.0 103.8 27.5 85% 28.5% 72% 74% 27% 20%
Slide 33: Consolidated Financials
Consolidated Financials 32
Slide 34: Consolidated Balance Sheet
Consolidated Balance Sheet (in INR Cr) Assets Mar-24 Mar-23 Property, Plant and Equipment 6.4 7.1 Goodwill & other intangible assets 601.7 576.0 Non-current Financial Assets & Other Assets 217.1 68.5 Income Tax & Deferred Tax Asset 14.1 20.5 Cash balance, Bank FDs and Current Investments 1,458.3 628
Slide 35: Consolidated Cashflow Statement
Consolidated Cashflow Statement (in INR Cr) Particulars Mar-24 Mar-23 Opening Cash Position (including investments and Bank deposits) 628.3 732.6 Profit before tax (from continued operations) 88.7 88.8 Non-cash items, non-operating items and others 46.5 31.0 Change in working capital (3.8) (85.7) Di
Slide 36: 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