Nazara Technologies Ltd. · NSE:NAZARA
Nazara Technologies — Q2 FY23 Earnings Presentation
27 slides from Nazara Technologies's earnings presentation, Oct 20, 2022
Slide 1: Intimation of Investor Presentation for quarter ended September 30, 2022
Nazara Technologies Limited Nazara TM 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 (East), Mumbai- 40
Slide 2: Investor Presentation Q2 FY23
Nazara Technologies Limited Investor Presentation Q2 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: Owing to strong H1 performance, FY23 revenue targets upward revised to 70-75% YoY
Owing to strong H1 performance, FY23 revenue targets upward revised to 70-75% YoY Commenting on the results, Mr. Nitish Mittersain, Joint Managing Director at Nazara Technologies said, “Nazara declared revenue of Rs. 4,869 million (486.9 Crs) and EBITDA of Rs. 514 million (51.4 Crs) in H1 FY23. Reve
Slide 5: Nazara: Strong growth momentum with continued focus on EBITDA profitability
Nazara: Strong growth momentum with continued focus on EBITDA profitability Revenue (in Rs. Mn) FY23 Guidance: Rev. Growth of 70-75% 2,638 4,869 +87% ~10,500-10,900 +104% +58% 2,608 6,217 1,296 1,100 2,005 4,542 2,475 FY20 FY21 FY22 FY23E Q2FY21 Q2FY22 Q2FY23 H1FY21 H1FY22 H1FY23 EBITDA (in Rs. Mn)
Slide 6: Q2 FY23: Revenue growth of 104%, EBITDA of INR 213 million
Q2 FY23: Revenue growth of 104%, EBITDA of INR 213 million in Q2FY23 Consolidated Performance (INR Million) EBITDA: 195 million EBITDA: 213 million 9% YoY Growth Revenue growth of 104% in Q2FY23- multiple growth engines firing • Nodwin revenue grew by 240% in Q2FY23 on account of growth in 2,638 55
Slide 7: H1FY23: Revenue growth of 87%, EBITDA of INR 514 million
H1FY23: Revenue growth of 87%, EBITDA of INR 514 million in H1FY23 Consolidated Performance (INR Million) Revenue growth of 87% in H1FY23- multiple growth engines firing: EBITDA: 514 million • 132% revenue growth in eSports segment: Nodwin revenue grew by 144% driven by growth in media revenues led
Slide 8: Nazara: Diversified business model with multiple growth engines
Nazara: Diversified business model with multiple growth engines Revenue by Segment (H1FY23) Revenue by Geography (H1FY23) Freemium Telco Subscription Middle East Rest of the world Real Money Gaming 6% Africa 8% 6% 2% 0% 2% Ad-Tech 14% 49% eSports 45% India 44% 23% North America Gamified E learning R
Slide 9: Track record of scaling businesses within Friends of Nazara network
H1FY23: Track record of scaling businesses within Friends of Nazara network FY22 FY22 FY22 Revenues: Revenues: Revenues: 2,108 mn 792 mn 2,044 mn 5.6x in 3.5x in 12.4x in 2 years 2 years 4 years FY20 FY20 FY18 Revenues: Revenues: Strong growth in Revenues: 142 mn NBA and NFL 582 mn Global leader 170
Slide 10: Nazara: Multiple levers of growth within the current business segments
Nazara: Multiple levers of growth within the current business segments • Growth in IPs leading to media rights revenue • Growth in subscriber base at the improved unit • Growth in eSports focused D2C businesses economics • Non-linear EBITDA growth as IPs scale and D2C • Lowest priced compared to com
Slide 11: Clearly Identified M&A strategy at Nazara and Friends of Nazara
Nazara: Clearly Identified M&A strategy at Nazara and Friends of Nazara White Spaces for M&A Strategy at Nazara Capital Allocation Framework at Friends of Nazara • Acquire established game development studios to scale • All the major businesses across Freemium business Friends of Nazara network are
Slide 12: Multiple growth engines firing
Multiple growth engines firing Strong growth - Multiple growth engines firing: (All figures in Rs. Mn) Q2FY23 Q2FY22 YoY% H1FY23 H1FY22 YoY% • eSports: Nodwin revenue grew by 144% in H1FY23 on account of Revenue by business segments growth in media revenues led by Master Series and Playground IPs i.
Slide 13: Individual Segment Performance
Individual Segment Performance
Slide 14: eSports: Nodwin Gaming- On a path of consistent high revenue growth
1A eSports: Nodwin Gaming- On a path of consistent high revenue growth • Nodwin revenue grew by 144% in H1FY23 driven by 240% YoY growth in Q2FY23. Nodwin witnessed growth in media revenues led by Master Series +89% CAGR +79% CAGR and Playground IPs along with strong growth in gaming accessories bus
Slide 15: eSports: Sportskeeda- Sustained revenue and EBITDA growth
1B eSports : Sportskeeda- Sustained revenue and EBITDA growth Revenue Split by Sports Revenue Split by Geography +89% CAGR 281 +133% CAGR 581 581 581 50.6% 23.1% 25.6% 137 73 33.1% 160 41.1% 29.9% 308 84 151 308 308 79 72 174 107 48 146 40 37 102 50 70 44 55 108 102 357 5 108 18 19 215 19 Q2FY21 Q2F
Slide 16: Gamified Early Learning: Kiddopia- Business stabilized, stage set for growth
2A Gamified Early Learning: Kiddopia- Business stabilized, stage set for growth Quarterly KPIs +11% CAGR +16% CAGR Key Metrics# Q2FY21 Q3FY21 Q4FY21 Q1FY22 Q2FY22 Q3FY22 Q4FY22 Q1FY23 Q2FY23 539 533 1,059 1,058 430 787 CPT $17.3 $23.6 $26.1 $26.9 $33.1 $34.6 $36.0 $39.3 $37.9 26.3% 27.3% 16.5% 33.4%
Slide 17: Gamified Early Learning: Wildworks acquired for $10.4 million
2B Gamified Early Learning: Wildworks Nazara acquired 100% stake for $10.4 million on 30th August 2022 Founded in 2003 and headquartered in Utah, WildWorks is one of the Investment Rationale most successful and established game studios in the US focused on the • WildWorks enables Nazara to solidif
Slide 18: Adtech: Datawrkz: Strong revenue growth of 52% in H1FY23
3 Adtech: Datawrkz: Strong revenue growth of 52% in H1FY23 Figures in Rs. Mn Datawrkz revenue grew by 52% YoY. 23 new clients added in H1FY23, contributing Revenue* EBITDA* EBITDA % to 41% of total revenues in the same period 52% CAGR On the demand side, Datawrkz functions as an Independent Trad
Slide 19: Freemium: Nextwave: Strong revenue and EBITDA growth
4 Freemium: Nextwave: Strong revenue and EBITDA growth +18% CAGR +15% CAGR Geographical Split (MAU- Revenue Split (H1FY23) 120 H1FY23) 53 38 90 85 29.2% 4% 23.4% 35 17.0% 22.2% 7.1% 8% 9 35 7 20 30% 24% 6 H1FY21 H1FY22 H1FY23 66% 68% -7 Q2FY21 Q2FY22 Q2FY23 Figures in Rs. Mn Revenue EBITDA EBITDA% I
Slide 20: RMG: Strong growth in Openplay EBITDA in H1FY23
5 RMG: Strong growth in Openplay EBITDA in H1FY23 HalaPlay Revenue EBITDA EBITDA % Openplay Revenue EBITDA EBITDA % OpenPlay Revenue Figures in Rs. Mn Figures in Rs. Mn 136.4 118.9 125.5 147 285 112.3 111.9 27.6% 26.1% 139 264 86.2 21.1% 19.7% 1 2 19.6% 18.2% 14.3% 13.1% 4 3 34.7 35.6 16.1 15.6 16.9
Slide 21: Telco Subscription: Revenue of Rs. 267 mn in H1FY23
6 Telco Subscription: Revenue of Rs. 267 mn in H1FY23 Figures in Rs. Mn Revenue EBITDA EBITDA % For H1FY23, the business has declined by 23% The drop in revenue primarily on account of currency depreciation in emerging economies (especially in markets such as Kenya, Nigeria, 207 428 Myanmar) 166
Slide 22: Consolidated Financials
Consolidated Financials
Slide 23: Highlights: Consolidated revenue growth of 87%, PAT growth in H1FY23
Highlights: Consolidated revenue growth of 87%, EBITDA of 514 million, PAT growth of 16% in H1FY23 Revenue growth of 104% in Q2FY23 and 87% in H1FY23- multiple growth engines firing: • 136% revenue growth in eSports segment: Nodwin revenue grew by 144% in H1FY23 driven by 240% revenue growth in Q2FY
Slide 24: Consolidated revenue growth of 87% in H1FY23 (income statement)
Consolidated revenue growth of 87%, EBITDA of 514 million, PAT growth of 17% in H1FY23 (All figures in INR mn) H1FY23 H1FY22 YoY% Q2FY23 Q2FY22 YoY% FY22 Revenue from operations 4,869 2,608 87% 2,638 1,296 104% 6,217 Content, event and web server 1,620 378 908 165 1,396 Advertising and promotion 1,4
Slide 25: Consolidated Balance Sheet: INR 6,507 million of cash on the balance sheet
Consolidated Balance Sheet: INR 6,507 million of cash on the balance sheet Assets Sep-22 Mar-22 Property, Plant and Equipment 73 36 Cash, Bank and Equivalents break-up Sep-22 Mar-22 Goodwill & other intangible assets 5,882 4,215 Nazara 3,796 5,194 Non-current Financial Assets & Other Assets 610 395
Slide 26: Consolidated Cashflow Statement
Consolidated Cashflow Statement: INR 173 Mn of Cash from Operations, INR 1,136 Mn of Investments in H1FY23 Particulars Sep-22 Sep-21 Opening Cash Position (including investments and FDs) 7,325 4,784 Profit before tax 484 368 Non-cash items 105 205 Change in working capital (197) (493) Direct taxes (
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 / Karan Thakker Ms. Anupriya Sinha Das rahul.agarwal@sgapl.net / karan.