Slide 1: Nazara Technologies Limited
Nazara Technologies Limited Nazara TM November 08, 2023 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 Q2FY24
Investor Presentation Q2FY24
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: Q2FY24: 30% EBITDA and 53% PAT growth in Q2; H1FY24 EBITDA margin of 11.1%
Q2FY24: 30% EBITDA and 53% PAT growth in Q2; H1FY24 EBITDA margin of 11.1% We are delighted to report consistent year-on-year growth in both revenue and profit for Q2 and H1FY24. Our strategic focus remains strong as we lay a robust foundation not only for the remainder of FY24 but also for FY25. We
Slide 5: 13% revenue growth, 30% EBITDA and 53% PAT growth in Q2FY24
13% revenue growth, 30% EBITDA and 53% PAT growth in Q2FY24 (All figures in INR Cr) Q2FY24 Q2FY23 YoY% H1FY24 H1FY23 YoY% Revenue from operations 297.2 263.8 13% 551.7 486.9 13% Purchases, Content, event and web server 130.5 101.7 216.8 172.9 Advertising and promotion 47.4 71.3 93.1 146.3 Commission
Slide 6: Cash balance of INR 820+ Cr as of Sep-23, Proforma Cash of INR 1,300+ Cr post Fund Raise
Cash balance of INR 820+ Cr as of Sep-23, Proforma Cash of INR 1,300+ Cr post Fund Raise (All figures in INR Cr) Assets Sep-23 Mar-23 7.2 7.1 Breakup of Cash & cash equivalents Sep-23 Mar-23 Property, Plant and Equipment 591.0 576.0 Nazara 311.4 360.6 Goodwill & other intangible assets Paperboat 141
Slide 7: H1FY24: Gaming margin at 22.7%, eSports at 6.9%, Adtech at 6.4%
H1FY24 : Gaming margin at 22.7%, eSports at 6.9%, Adtech at 6.4% in H1FY24 Gaming eSports Adtech Revenue: 213.9 (+19% YoY) Revenue: 289.9 (+21% YoY) Revenue: 50.2 Cr (-26% YoY) EBITDA: 48.5 (+43% YoY) EBITDA: 19.9 (+16% YoY) EBITDA: 3.2 Cr (-52% YoY) EBITDA Margin: 22.7% EBITDA Margin: 6.9% EBITDA M
Slide 8: Q2FY24: Gaming margin at 20.9%, eSports at 5.8%, Adtech at 6.2%
Q2FY24: Gaming margin at 20.9%, eSports at 5.8%, Adtech at 6.2% Gaming eSports Adtech Revenue: 104.3 (+14% YoY) Revenue: 172.0 (+26% YoY) Revenue: 22.5 Cr (-37% YoY) EBITDA: 21.8 (+46% YoY) EBITDA: 10.0 (+61% YoY) EBITDA: 1.4 Cr (-59% YoY) EBITDA Margin: 20.9% EBITDA Margin: 5.8% EBITDA Margin: 6.2%
Slide 9: A Diversified & Profitable Sports & Gaming Ecosystem
A DIVERSIFIED & PROFITABLE SPORTS & GAMING ECOSYSTEM 8
Slide 10: Core tenets on which Nazara ecosystem is built
Core tenets on which Nazara ecosystem is built Core Nazara DNA Our ecosystem eSports Gaming Focused IP driven play Profitable growth in a capital efficient manner & others Reinvestments stemming & others from healthy internal cashflows Adtech Intrinsic defensibility against macro shocks 9
Slide 11: Track record of successfully scaling assets to leadership positions
Track record of successfully scaling assets to leadership positions Expansion strategies deployed Scale up post Nazara acquisition Amounts in INR Cr IP development Acquisitions 2 50+ 5 23x growth in scale IPs in 2018 IPs currently # of acquisitions FY2018 FY2023 (Year of acquisition) Media rights As
Slide 12: Nazara is well diversified across demographics, geography and business models
Nazara is well diversified across demographics, geography and business models Target segment Geography1 Caters to users across all ages so 39% 46% 15% <10yrs 10-18yrs 18yrs+ North India RoW America Gamified Early Freemium & eSports & ( % Revenue Contribution of overall business) Learning eSports RMG
Slide 13: Our Growth Plans
OUR GROWTH PLANS 12
Slide 14: Growth Strategy: Stage set for acceleration of growth and profits
Growth Strategy: Stage set for acceleration of growth and profits Focus across segments on developing IPs and creating multiple Core IP focus monetization models around them Sustainable Growth combined with profitability and healthy internal cashflows playbook creating a sustainable business model B
Slide 15: We have raised INR 510 crores from SBI MF and Zerodha Co-founder Nikhil Kamath
We have raised INR 510 crores from SBI MF and Zerodha Co-founder Nikhil Kamath 14
Slide 16: M&A Strategy: Our focus is to acquire game studios with established IP and profitability
M&A Strategy: Our focus is to acquire game studios with established IP and profitability Target Genres Target Evaluation Matrix Nazara Acceleration Platform Engagement Leverage Internal Synergies: Casual Scale : Downloads, MAU, DAU Harness the collective skills of our diverse (Puzzle, Simulation ) E
Slide 17: Nazara Publishing: India's first comprehensive game publishing platform (1/2)
Nazara Publishing: We have launched India’s first comprehensive game publishing platform (1/2) Nazara to partner with Global developers to localize and publish their games for the regional markets; as well as partnering with Indian developers to publish their games globally Our goal: • To empower th
Slide 18: Nazara Publishing: India's first comprehensive game publishing platform (2/2)
Nazara Publishing: We have launched India’s first comprehensive game publishing platform (2/2) Outreach to Indian developers launched at India's Launch leading event for the developer community (IGDC) received a good response Nazara will commit a minimum of INR 1 Crore per game Investment and aims t
Slide 19: Gaming eSports Adtech
Gaming eSports Adtech Revenues: INR 213.9 Cr Revenues: INR 289.9 Cr Revenues: INR 50.2 Cr EBITDA: 22.7% EBITDA: 6.9% EBITDA: 6.4% Note: Revenue and EBITDA for H1FY24 18
Slide 20: Gaming: Building leading IPs to capture the large gaming market opportunity
Gaming: Building leading IPs to capture the large gaming market opportunity H1FY24: Revenue: 213.9 Cr YoY Growth: 18.6% EBITDA Margin: 22.7% Monetization Market Financials Brand / IP Sub-segment Demographics Key Market Model Positioning H1FY24, INR Cr #1 Grossing app in its category1 Revenue: 157.8
Slide 21: Gaming -> Kiddopia: #2 Grossing App for Kids in the US
Gaming -> Kiddopia: #2 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 Note: * Based on App Annie Top Grossing rank for Kids under 5 in the United States (iPhone) 20
Slide 22: Gaming -> Kiddopia: Continued revenue and EBITDA growth
Gaming -> Kiddopia: Continued revenue and EBITDA growth Q2FY24: EBITDA margins at 22.9% Quarterly KPIs +5.5% +7.6% Key Metrics Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 56.3 105.9 113.9 53.4 CPT1 ($) $37.9 $37.3 $35.9 $39.3 $38.9 Marketing Spend (Mn) $3.1 $3.4 $3.2 $2.6 $2.7 16.5% 22.9% 17.5% 25.5% Avg. Ac
Slide 23: 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 Gamified Early Learning Quarterly Financials (INR Cr) Geographies: USA 80% RoW 20% Audience: 8-12 years old (Majority girls) 22.4 22.0 21.9 Revenue Model: IAP, Subscription 24.0% 11.6% 22.5% 5.0 5.3 2.6 Q4FY23 Q1FY24 Q2 FY24 Rev
Slide 24: Gaming -> Animal Jam: Strategic transformation of a cherished IP
Gaming -> Animal Jam: Strategic transformation of a cherished IP Key recent business updates ARPDAU $0.21 $0.21 $0.18 $0.16 • Animal Jam enjoyed an ARPDAU improvement over 46% $0.15 from Q2FY23 to Q2FY24 ARPDAU • Due to significant increases in compelling IAPs that resonated with players, the averag
Slide 25: Gaming -> WCC: India's leading Cricket Simulation game
Gaming -> WCC: India’s leading Cricket Simulation game Geographies: India- 65% of MAU Freemium Audience: 13-45 years old Revenue Model: Advertisement, IAP Note:1. Source: Udonis Blog 24
Slide 26: Gaming -> WCC: Disrupting the Status Quo of the WCC Franchise
Gaming -> WCC: Disrupting the Status Quo of the WCC Franchise Key recent business updates • Scaling up user acquisition in markets with higher concentration of Indian User diaspora – with focus on UK, Middle East & North America Acquisition • Focus on targeting users with higher propensity for In-Ap
Slide 27: Gaming -> WCC: Maintaining Revenue and profitability while setting the stage for future growth
Gaming -> WCC: Maintaining Revenue and profitability while setting the stage for future growth 12.6 Geographical Split Revenue Split 12.0 5.3 5.4 (MAU H1FY24) (H1FY24) 5% 29.4% 28.6% 24% 17.4% 20.8% 3.5 3.6 0.9 1.1 95% 76% Q2FY23 Q2FY24 H1FY23 H1FY24 Figures in Rs. Cr Revenue EBITDA EBITDA% South As
Slide 28: Gaming -> Classic Rummy: GST regime kicked in from 1st October 2023
Gaming -> Classic Rummy: GST regime kicked in from 1st October 2023 • In July 2023, the GST Council decided to levy a 28% tax on the entry fees of real money games. This has come into effect from 1st October, 2023. 13.8 14.0 26.4 25.2 20.8% 22.1% • Due to implementation of new GST tax rate from Oct
Slide 29: Gaming eSports Adtech
Gaming eSports Adtech Revenues: INR 213.9 Cr Revenues: INR 289.9 Cr Revenues: INR 50.2 Cr EBITDA: 22.7% EBITDA: 6.9% EBITDA: 6.4% Note: Revenue and EBITDA for H1FY24 28
Slide 30: eSports -> Nodwin: #1 eSports company in India with a 360 degree offering
eSports -> Nodwin: #1 eSports company in India with a 360 degree offering for the eSports fan Robust Flanking Strategy to expand offerings / adjacencies across markets Unpaused Entertainment Live events and IP Gaming & [PSH] business eSports Gaming Gaming merch. Asia Pacific IPs Marketing Agency Oct
Slide 31: eSports -> Nodwin Gaming: Multiple IPs conducted in the last few months
eSports -> Nodwin Gaming: Multiple IPs conducted in the last few months 30
Slide 32: eSports -> Nodwin Gaming: Gearing up for H2 with multiple key IPs announced
eSports -> Nodwin Gaming: Gearing up for H2 with multiple key IPs announced 31
Slide 33: eSports -> Nodwin Gaming: 20% revenue growth in Q2FY24
eSports -> Nodwin Gaming: 20% revenue growth in Q2FY24; stage set for future growth Media Revenue (%) 19 125.4 194.0 37 104.5 168.9 Content Views (In Mn) 221 377 0.6% 1.1% 0.8% 0.6 1.3 1.4 Distribution (100 hours) 78 74 Q2FY23 Q2FY24 -3.5 Partners 136 H1FY23 H1FY24 146 Figures in Rs. Cr Revenue EBIT
Slide 34: eSports -> Sportskeeda: Proven Operational Success in India and US
eSports -> Sportskeeda: Proven Operational Success in India and US The Sportskeeda Playbook Ø Process led setup to consistently drive efficiencies with each sport having its own P&L Differentiated Ø Sharp focus on a data-driven approach to dispassionate decision making across all business functions
Slide 35: eSports -> Sportskeeda: PFN ranked as the #2 NFL-focused website in the US
eSports -> Sportskeeda: PFN ranked as the #2 NFL-focused website in the US for September 2023 Acquisition Rationale: Growing US Footprint Initial Results Successful § Leading voice in NFL (ranked #3); multi-format § PFN (Pro Football Network) reached #2 publisher NFL ranking in September as per Simi
Slide 36: eSports -> Sportskeeda: 50% revenue and 44% EBITDA growth in H1FY24
eSports -> Sportskeeda: 50% revenue and 44% EBITDA growth in H1FY24 Figures in INR Cr Figures in INR Cr Revenue Split by Sports Revenue Split by Geography 41.4 87.2 87.2 87.2 28.1 11.4 58.1 16.9 23.2% 28.8% 58.1 58.1 26.0% 29.9% 14.4 19.4 25.1 5.3 7.3 9.6 17.4 11.2 18.8 17.2 10.2 15.8 56.4 37.1 35.6
Slide 37: Sportskeeda Heroes of Tomorrow – Supporting talent at grassroots level
Sportskeeda Heroes of Tomorrow – Supporting talent at grassroots level Harmilan Bains (Winner of Silver Medals in 800M and 1500M at the 2023 Asian games) Harmilan Bains was part of the Sportskeeda "Heroes of Tomorrow" initiative since well before the Asian Games, and we're proud our support helped h
Slide 38: Gaming eSports Adtech
Gaming eSports Adtech Revenues: INR 213.9 Cr Revenues: INR 289.9 Cr Revenues: INR 50.2 Cr EBITDA: 22.7% EBITDA: 6.9% EBITDA: 6.4% Note: Revenue and EBITDA for H1FY24 37
Slide 39: Adtech -> Datawrkz: Focused efforts for future EBITDA growth
Adtech -> Datawrkz: Focused efforts for future EBITDA growth Figures in Rs. Cr Revenue* Gross profit* Gross margin% EBITDA* EBITDA% Increasing Contribution of High Margin -26% Business1 -37% 67.6 15% 35.5 28% 26% 32% 41% 37% 50.2 24.6% 22.5 26.6% 18% 18.8% 85% 72% 74% 68% 10.0% 6.4% 6.2% 59% 63% 9.5
Slide 40: Contact Us
Contact Us Company : Investor Relations Advisors : Nazara Technologies Limited CIN: U72900MH1999PLC122970 Strategic Growth Advisors Private Limited Mr. Rakesh Shah Chief Financial Officer Rahul Agarwal / Karan Thakker Ms. Anupriya Sinha Das rahul.agarwal@sgapl.net / Head of Corporate Development kar