Nazara Technologies Ltd (NSE: NAZARA) Q3 2026 Earnings Call dated Feb. 04, 2026
Corporate Participants:
Nitish Mittersain — Founder and Joint Managing Director
Anupriya Sinha Das — Head of Corporate Development
Akshat Rathee — Co-Founder and Managing Director
Terry Lee — CEO, Fusebox
Ajay Pratap Singh — , Chief Executive Officer, Absolute Sports Pvt Ltd
Stuart Dinsey — Executive Chairman, Curve Games
Jeff Amis — Co-founder and Chief Executive Officer
Analysts:
Kunal Bajaj — Analyst
Sachin Dixit — Analyst
Jinesh Joshi — Analyst
Pranav Mashruwala — Analyst
Kunal Bajaj — Analyst
Bhavik Shah — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to Nazara Technologies Q3FY26 earnings conference call hosted by Choice Equity Broking Private Limited. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Kunal Bajaj from Choice Equity Private Broking Limited. Thank you. And over to you sir.
Kunal Bajaj — Analyst
Thank you, Shubham. Good morning everyone and a very warm welcome to all of you. On behalf of Choice Equity Broking, I would like to extend a warm welcome to the Q3FY26 post results conference call of Nazara Technologies Limited. I would like to take this opportunity and welcome the senior management team joining us on the call today. Today we are pleased to have with us Mr. Nitish Mitta Singh, CEO and Joint MD Nazar Technologies. Mr. Rohit Sharma, Executive Director, Nazara Technologies. Mr. Rakesh Shah, CFO, Nazara Technologies Ms. Anupriya Sinar Das, Head of Corporate Development, Nazara Technologies Mr.
Terry Lee, CEO of Fusebox Games Mr. Jeff Amis, Co Founder and CEO Wildworks. Mr. Stuart Dinsey, CEO, Curve Games Mr. Shreyas Menon, Head of Offline Gaming at Nazara Technologies Mr. Akshat Rathi, Founder, Nordwing Gaming Private Limited. Mr. Ajay Pratap Singh, CEO Absolute Sports Private Limited Mr. Senthil Govindan, CEO of DataWorks Business Solutions Private Limited. Mr. Mr. Chris Jones, CEO, Space and Time. I now hand over the call to Mr. Nadesh for the opening remarks. Thank you. And over to you sir.
Nitish Mittersain — Founder and Joint Managing Director
Hi everyone. Good morning and thank you for joining us this morning. In Q3FY26 Nazara delivered revenues of INR 406 crores which were lower by 24.1% primarily due to the deconsolidation of our esports business. However, our EBITDA came in at INR 67.8 crores which was up 29.4% during the same period. And our margins expanded to 16.7% as the company refocused on its higher margin IP based gaming business. For nine months, FY26 revenue grew by 29.7% year on year to INR 141.2 crores while EBITDA increased 73% year on year to INR 177.2 crores. With our overall margins expanding to 12.4% Kidopia achieved a much awaited resumption in subscriber growth in this quarter driven by the hard work of the team as well as Nazara’s Centers of Excellence in user acquisition, data analytics, growth and product.
In parallel, the company continued to explore new platforms and in this quarter soft launched Animal Jam on the Roblox platform and we believe these new platforms can unlock growth for us going forward. Also in this quarter our associate company Nordvin, which is the leader in esports space in India, delivered strong operational performance and and profitability. Nazara continues to make strong progress in building a global gaming company focused on creating scalable world class IP and franchises. This quarter was driven by disciplined execution, improving operating efficiencies and multiple growth engines across new launches, live content expansion and platform extensions.
I must say we are also doing a lot of work on AI and introducing these components into some of our games which I believe will have positive benefit for us going forward. We remain focused on disciplined capital allocation including through strategic M and A and our Centers of Excellence that we have created will bring a lot more synergy in the acquisitions that we do going forward. With that I will now hand over to Anupia to discuss a little bit more details in the segmental performance. Over to you Anupriya.
Anupriya Sinha Das — Head of Corporate Development
Thank you Nitish Good morning everyone. In Q3FY26 our gaming segment revenue grew to INR257 crores growing 66% year on year and EBITDA grew to INR 64.2 crores growing 87% year on year resulting in an EBITDA margin of 25% for the segment in 9 month FY26. On a year on year basis our core gaming segment revenue grew by 119% to INR 793.8 crores and EBITDA grew by 172% to INR 188 crores with an EBITDA margin of 23.8%. In mobile gaming the momentum remains strong with revenues rising to INR 534.7 crores up 48% year on year and EBITDA increasing to INR 99.2 crores up 43% year on year.
As British pension performance is driven by both the management teams and the COE led initiatives such as user acquisition and data analytics which tighten the LTV guardrails and strengthen the LiveOps cadence. Gitopia returned to subscriber growth in Q3 FY26 after several quarters supported by the coordinated COE efforts with the management team and unlocked multiple levers of growth during the period. Animal Jam was also launched on Roblox, a new platform alongside many content updates across Kidopia, Cats and kot. A sharp increase in marketing spend for Love island in December impacted EBITDA in the near term with the benefits expected to translate into higher revenues in the subsequent months.
Moving to PC and console publishing, we continue to deliver high margin IP monetization and expanding platform reach. Curve’s Evergreen catalog and new platform initiatives supported durable monetization. Human Fall Flat with lifetime sales of 58 million units remains a long tail seller while Wobbly Life showed strong early momentum on Switch 1 with sales of over 200,000 units. Turning to offline gaming, the portfolio reported healthy profitability with 36% EBITDA margin in Q3FY 26 in Q3 smash delivered INR 24.3 crores of revenue and INR 7.1 crores of EBITDA while Funky Monkey posted 6.1 crores of revenue and 3.7 crores of EBITDA.
We also expanded footprint through four new Funky Monkey centers in the quarter and I continue to progress The Smash Experience 2.0 revamp as a medium term relaunch. Moving on to other segments in nine month FY26 adtech delivered stronger growth and improving profitability. Revenue was up 86% year on year and EBITDA by 95% year on year. In Q3 FY26, EBITDA increased 26% year on year while revenue was down by 22 point by 22% year on year attributable to reduced focus on low margin non tech managed services business. This reflects broader product mix improvement and increasing focus on tech enabled offerings that are increasingly higher margin.
Moving to Nordwin as mentioned, our associate company Nordvind delivered a strong Q3 and demonstrated EBITDA profitability after the impairment and cessation of fleeks in QC. FY26 revenue was up 58% year on year at INR 261 crores and EBITDA reached INR 40 crores. The quarter featured marquee executions and new IPs including DreamHack and Starladder in Budapest. Within Absolute Sports, the portfolio has stabilized and selective product expansion is happening. Sportskeera executed significant cost realignment as Q3FY26 costs were down 32% year on year. Other properties of Absolute Sports continue to perform well. Pro Football Network revenue is up 59% year on year on a YTD basis while Prime Timer posts strong post acquisition revenue gains.
With this, I conclude my remarks and will be now open to the call for Q and A.
Questions and Answers:
operator
Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on the Touchstone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Sachin Dixit from GM Financial. Please go ahead.
Sachin Dixit
Hi. Hi team. Thank you for the opportunity. I had three questions. The first one to start with is on Kidopia, right? So congratulations on increasing the subscription numbers there. But how do we think of the margin dip? Right? Because are there expectations that the stickiness from these acquired customers is going to deliver leverage in the coming quarters? Or even if you can break down maybe like what is the ratio of monthly versus the early subscriptions there? So just to understand something on the stickiness side so that we can anticipate a better margin in coming quarters, I hope you heard me.
Hello?
Nitish Mittersain
Yeah, why don’t, why don’t you complete your questions and then we can answer one by one.
Sachin Dixit
Sure. So. So that was the first question was on Kidopia. The second one is if you can explain any seasonality that we see in margins in offline gaming, right? They spiked in this quarter. Last quarter was relatively poorer. How should we expect the sort of benchmark margins for the offline business if there is a festive quarter related seasonality or anything? And the final question is on the couple of investments that you highlighted in the press release and Core Games and Rust Media, if you can shed some more light there, what’s the plan? There are these just minority investments for now.
How should we look at those pieces? Thank you.
Nitish Mittersain
Okay, sure. So let me start with Kidokia. This is Nitish, I think for us. You know, we have created these centers of excellence on user acquisition, on data analytics, on AI and growth. And we are starting to see these really add value to our existing businesses. Starting with Kidopia, we kind of focused on Kiddopia first. And what we have managed to achieve really in the last couple of quarters, which is now showing up in Q3, is you know, that we are able to spend and acquire more users, but at, you know, good costs per trial and CAC.
So if you see in Q2 our CAC was 37.5, but in Q3 we have spent more, acquired more users and at 35.8 USD per user. At the same time, our ARPUs have been steadily increasing. In Q3 we were at $7.45 per user compared to 7.34 in Q2. So in effect what we are able to now do is scale our user acquisition spends, acquire more users, but at the price that we want to, and we will continue to optimize that. So this is, I would say the drop in margins is actually a very healthy sign in this particular case because we are acquiring more users that are profitable for us.
And over the year in the coming quarters, you will see revenue growth that will make up for the, you know, short term margin erosion usually has a two years, you know, LTV that we see. So we will continue to generate users revenues from users over a two to three years period that we acquired. All along the last two years we’ve maintained that, you know, we will maintain a very strong discipline on the cost of acquisition of the user because we don’t want to acquire users at any cost. And I think that’s what we are able to achieve now.
So we are feeling very positive about Kidopia’s growth and defensibility of margins going forward.
Sachin Dixit
Just to clarify, just to clarify on this side, Obviously margins in Qdopia have consistently dipped from 25% in Q3 last quarter to reaching 9% this quarter. Right. So should we anticipate that margins will remain in this 9 odd percent range as you highlighted, like you spent on customer acquisition and without basically seeing a lot of leverage on the currently acquired cohort, unlikely that you will see margin improvement in the near future?
Nitish Mittersain
No, I think the point is the margins have dipped because we have spent more in this quarter.
Sachin Dixit
But you plan to spend now.
Nitish Mittersain
Yeah, and we will continue to spend. But also you have to realize that as we keep spending higher, the revenues will also start scaling, so they will start offsetting the higher spends in terms of margins. So margins until, unless we really get good, you know, fantastic traction and let’s say we are able to further significantly increase our spends. Let’s say the spends remain as they were in Q3 and Q4, Q1, Q2 of next year, then the margins will automatically start coming back as the revenues will grow.
Sachin Dixit
And just to close this, do you have any margin number in mind? FY 27, 28. I’ll hit these numbers.
Nitish Mittersain
I think, I would say, I would not hazard a guess on margins. I think we will. The only point I would like to say is that within our profitable equation of acquiring users, we usually Follow a policy where we want to earn back 100% in two years period or whatever capital we invest in user acquisition. As long as we are able to achieve that, we will maximize our friends for growth.
Sachin Dixit
Got it. Thank you. We can move to other questions.
Nitish Mittersain
Yeah. On offline business, let me give you. I have shares here who’s heading our offline gaming business. But let me give a quick overview of what’s happening. Our Funky Monkey Centers have been expanding pretty rapidly. And you know, we’re launching about one to two new centers per month currently. So we’re seeing rapid expansion. These centers have a breakeven period of less than one year. So we can, you know, continue to see rapid growth over there. In terms of smash, we are right now in the midst of relaunching a whole new imagined smash. I think that will take probably a couple of quarters to launch before we start expanding.
So we’ve kind of optimized a lot of costs in the current operations which show up in the margins. We’ve also closed on one center which was kind of loss making. So that loss has gone away. So I think some level of optimization has been going on. But the real growth in SMASH will come once we relaunch the all new SMASH in the next couple of quarters. You have any specific?
Sachin Dixit
No, no, I. I just wanted to compare. Right. So for example, if I look at Funky monkeys here, 61% EBITDA margin. Right. Which means that we are able to sweat our assets quite well. I mean if I have a business which breaks even in a year and the 60% margins, I’ll probably invest all my money there. So just to understand like, which is why I’m asking The question, is 61% the sustainable margin or maybe something like a 40%. Right.
Nitish Mittersain
The margin, I think, I think on a steady state basis, 35, 40% we should project. Understood. Yeah, but, but we are doing actually that. Right. We have a intent to really expand the number of centers. But you know, because it’s launching new centers is operationally heavy, we want to make sure we are well geared to do that before we really scale. But right now this one to two centers a month launch is already in way. If I were to zoom out, I think over the next couple of years can we get to 100 funky monkey centers in India? We surely can.
Sachin Dixit
Understood. That’s fair enough. Thank you.
Nitish Mittersain
Yeah. On core gaming, the last question you asked was on investments, this minority investments we have made. I think this point here really is twofold. One is what is the strategic Indian opportunity as you know, Indian gaming today, if you look globally in terms of number of downloads on mobile phones, is number one on Google Play, number one on Apple Store one or two sometimes. So there’s a lot of consumption. However, we are not even in the top 10 on monetization. But slowly and steadily, I am very confident that we will, you know, inch up and get there and India will eventually become a very large monetizable gaming market going forward.
So our intent is that while today Nazara’s revenues are largely coming from international markets and in the near term, I believe that will continue to grow in the, you know, faster in the international markets. It’s very important for us, as you know, our home base being India, we kind of continue to invest very aggressively in this market. So I think some of these investments you’ve seen in the past also like Stan Rusk in this time Encore, are with an intent to invest in the local gaming ecosystem and create a network and ecosystem for Nazara that we can continue to exploit as the market grows.
Specifically for Encore, they are makers of the 4G game, which is made in India, competitor to many of the, you know, international games like PUBG in India. So I believe that’s a game that Nazara is already publishing. The game is on, you know, good track in terms of the KPIs, early KPIs we are seeing with the quality and the feedback of customers we are getting. So we’ve taken this call to have a minority position. These investments are all minority. At this point of time. We will continue to engage with the respective companies and at some point we may either monetize these investments or we could, you know, take larger stakes or we could acquire.
So we’ve kept all the options open for ourselves.
Sachin Dixit
Thanks for the detailed answer and all the best.
Nitish Mittersain
Thank you.
operator
Thank you. A reminder to all participants, anyone who wishes to ask a question may press Star and one on the Touchstone telephone request to all participants, please restrict your questions to two per participant. For more questions, please rejoin the queue. The next question comes from the line of Jinesh Joshi from PL Capital. Please go ahead.
Jinesh Joshi
Yeah, thanks for the opportunity. In the novel business, the turnaround that we have seen in the ppt, we have mentioned that it is primarily attributable to breakeven in some of the IPs like Comic Con. But given the swing that we have seen in this quarter on the EBITDA side, can you talk a bit more about which all IPs broke even and also the fact that it appears multiple IPs seem to have done well in this quarter. So what led to turnaround in most of them in this quarter. So yeah, your thoughts on that?
Nitish Mittersain
Why don’t I get Akshat, who’s the CEO of Nordwin, to answer this? Akshat,
Akshat Rathee
thanks so much, I appreciate the question. Look, I think the core business of Northwind was always doing well, has always been doing well for a very long time. It’s the reason why we are such a dominant force in the world and one of the top three companies in the world. What clouded us in the last one year was this attempt that we had done to go ahead and build a European business in Germany specifically, that didn’t work out and that was a drag on everything. Right. So even if you were making natural profitability in the business for around 20, 25, 30% margins, that was all eaten away.
And not only was that eaten away, it prevented an RV investment in growth, which we typically do over the business. So Norman actually likes going and gain profit building IPs and IPs typically have a three year build out cycle for us. Year one is what we call an experiment. We typically expense this out. Year two is when it starts going and generating traction and we know it’s successful. We have a 50% culling rate in IP that you would test in the first year to second year gestation and in second year funds they are good enough to go ahead and do and they scale up in the way and we believe they will go ahead and have payback periods that are viable.
IPs start being called IPs really in year three for us. And that takes time. Right? So if you’ve looked at some of the things that we’ve been building over a certain number of years, Most of our IPs in the large businesses are over 10 years old, whether it be NF7, all that Matters, Dreamhack, Comic Con, large ones, BGMs, etc. Even the domestic ones that we have are hitting five year cycles. So all of those cycles that are now sustainable cycles start going and generating farming revenue for us, which is sustainable, long term, repeatable sustainable for us.
The first three years are always the chaotic period for us. And those are the ones that are also going to start showing some offshoots in the next one, two, three years. Even Starladder, for example, we won the award for the world’s best esport tournament, literally the Grammys and the Oscars, the way you think we won the tournament of the year award. This is a team that has total staff, staff size of 18 people they were when we acquired them. We then ingested them into the Northwind ecosystem. We supported them, which is there. And then with Indian hard work and Starladders finesse we were able to go ahead and do this.
And the profitability in that business is what you see that comes out of it so sustainably on a long term basis. This is our roadmap. The other thing that we’ve done is we also rationalize the certain costs as all the organizations go through. We have a synergy team whose entire job is to go and integrate every company that we acquire into a more holistic method. So typically those would be six months to nine months after acquisitions we would have layoffs that would happen on adjustments or some of those people would be put into newer projects.
So both cost cutting exercise and IP mature maturing has gone and helped and hopefully this goes and sustains as we go forward.
Jinesh Joshi
Understood. So basically just to sum it up, deconsolidation of fleets for you and some of the legacy IPs did well in this quarter and that is the reason why the outperformance, right?
Akshat Rathee
Correct. So Freaks4U was always a trap. Like it was something that we made a mistake, right? Like. And it’s not the only mistake we have made. We also had the wings time which are there. So we do, we keep trying. And we’ve also done four other investments during this time which is Comic Con, Trinity, AFK Gaming, others which have done phenomenally well for us. And that’s the reason Nordwin’s going out and raising a new round. And as part of the raising the round. The world loves what we do. It just makes me a little grayer more and more often when things don’t work out.
But the world doesn’t like what we do. So yes, understood.
Jinesh Joshi
Two small bookkeeping questions from my side. First is that if I look at our depreciation expense on a sequential basis it has basically remained flat despite the deconsolidation of Nordwid. Ideally the amortization figure from Free Score you should have been eliminated and to that extent the expense should have been lower. So. So any reason why we have not seen a decline over there? That is one. And secondly, I mean in response to previous participants question you mentioned about the EBITDA margin profile of the offline business. I just wanted to check because I believe most of these centers would be on lease. So whatever margins you are seeing, whether these are three days EBITDA margins or post India EBITDA margin.
Nitish Mittersain
Sure. I think on the depreciation Question While you know some of the freaks depreciation has gone out, you have smash and other depreciations that have got added. So I think curve depreciation is also added. So I think it’s kind of got balanced out in terms of the other acquisitions we have done. In terms of the other question on the offline business, this is the 40, 45% elevated margin you’re seeing is because of also the India’s accounting as you rightly point out, whether these lease comes below ebitda.
Jinesh Joshi
Right. So what will be the true EBITDA margin? Any, any color you can share on that.
Nitish Mittersain
I think on a steady state, what I said earlier, between 25 to 35% is where we should land up at.
Jinesh Joshi
Thank you so much and all the best.
operator
Thank you. A reminder to all participants. Anyone who wishes to ask a question may press star and one on the touchdown telephone. The next question comes from the line of Pranov Mashruwala from Dalat Capital. Please go ahead.
Pranav Mashruwala
Yeah, hi.
operator
Yeah. Yeah. Yes.
Pranav Mashruwala
Yeah, hi. Thank you for giving me an opportunity. Just doubling down on Northern just again. So this is again largely which were some of the key IPs that you know, drove this outperformance almost you know, 60% QP growth despite the for UD consolidation. That is one and the question so.
Akshat Rathee
Northwind as it’s expanded into its global role, just as a matter of record, Nordvin is among the top two esports companies and gaming companies in the world now both by revenue. We are the only profitable one which is the largest emerging market one. So been able to go ahead and build this. What it does is. I’m going to take a little longer, maybe two minutes to explain this. What it does is when we acquire assets and then we go ahead and build the ip. For example, when I say this counter strike it just sounds like a normal another event that we do, right? So the Counter Strike major is like the World cup that we hosted.
It’s the world championship of counter strike that was in Budapest. The best teams in the world come in. The millions of dollars of price pools are coming in. And when you build something like this and go ahead and do this, it goes and does multi tens of millions of dollars for one time exercise. But what it does really the reason it’s there is that’s one time, right? It’s not really sustainable. The next time you’ll do this is two to three years later something as large. But what it does is it builds credibility for someone like Nordville, which is coming from India in the World doesn’t think that India is the best place to go out and do it.
But that reputation is changing really fast with what we do. That gives other publishers and other world championships the opportunity to go ahead and tell us hey, would you like to go ahead and do our championship? And so on the back of this acquisition and the back of the world, the world championships that we did and the fact that we won the tournament of the year, we’ve now got a order book of at least 10 other events that have come in to our portfolio that we would not normally have. The bigger companies in the world, mostly the Europeans or the Chinese ones would have got the opportunity to do it.
So that’s the reason why this has happened and that that makes it sustainable now on a specific IP level. We’ve been able to do the major. We’ve been able to do greenhouse. We did the honor of Kings championship in. Where did we do it Of Kings Championship in Astana and then we went and did event. So all of those have now just started creating on the esports part of the business but also the culture side of the business. When we go ahead and do something like a comic con it creates the opportunity for Disney to come to us and say hey, would you like to go ahead and do something with our launch portfolio that is interesting for us.
Most of these things when you do. Great things goes and just does a cascade effect that allows you to go ahead and do more in future.
Pranav Mashruwala
Okay, thanks for the detailed answer from the bookkeeping side. Again, although Northern has reported a healthy profit, it has not quite trickled down to share of associates and JV in the P and L statement which is right now just a mild 3 lakh loss. What explains this?
Nitish Mittersain
There’s a I think freaks for you impairment that would have translated into below ebitda.
Pranav Mashruwala
What would be the impairment size?
Nitish Mittersain
Sorry, you are asking for NordWins contribution to so earnings per share or you’re talking of Nazaras?
Pranav Mashruwala
No, I was asking. So have the fiddles for you impairment really netted off most of the proportionate gains that we recorded in Northwest? Here. Is associate. You are not seeing the impact of. Nordwin’s profit because there is a loss which is coming from the moonshine.
Nitish Mittersain
Okay, got it. Understood. Let me explain that. Yeah, so you. So. So you have the share of associate of profit coming from Nordwin but that is completely offset by incurred loss of moonshine which is poker Bazi. They have operating loss of 30 crores for the quarter. So we are 46% of that is offsetting the Northwind Games.
Pranav Mashruwala
Okay, understood. So going forward, would there be further loss to record for the real gaming business?
Nitish Mittersain
You know, we had impaired most of the value that we were carrying in the last quarter. There is I think about 1900 crores, exact amount. Maybe Rakesh can confirm that we are still carrying on the books of which 30 crores would have eroded in this quarter. So there could be some. But also they are working on, you know, different revenue streams etc, so hopefully some of that will reduce going forward.
Pranav Mashruwala
Okay, this last one, the minority interest of about 9 million is attributed largely to ad tech.
Nitish Mittersain
Minority? What
Pranav Mashruwala
minority interest outgo of 9 million. Okay, thank you so much.
operator
Sure. Thank you. The next question comes from the line of Kunal Bajaj from Choice Equity. Please go ahead.
Kunal Bajaj
Thank you. Congratulations on good set of results. So I have two questions in particular. Firstly, we see sports Kira. So we have observed that there is some arrest in a quarter on quarter decline in top line, but on our YY basis still down. So how do we see this business growing? How are we placed in terms of initiatives post the Google Update changes? This is one. And secondly, we see that Fusebox obviously has taken a hit this quarter. So do we see any seasonality effect because of absence of an on air show or have any trend on this front? Yeah, that. That’s the question.
Nitish Mittersain
Sure. Let me answer the second one. I think, I think we have Terry here on the call. Call, right?
Anupriya Sinha Das
Yeah.
Nitish Mittersain
Okay. So I think maybe Terry can answer them.
Terry Lee
Yeah, sure. Thank you for the question. Yes, with few Fox games being all linked to TV show IPs, we definitely do see seasonality effects, but more specifically somewhat in the organic, but more specifically in our user acquisitions. So when the TV shows are on and also depending on how well the TV shows do, whether or not there’s a virality effect similar to what we saw in the summer in Q2 with explosions on TikTok and Instagram about particular storylines and celebrities, then use acquisition becomes a lot cheaper for us because it’s a lot easier to find our players.
And so we end up spending very aggressively, still within profitability, but we end up spending very aggressively. So what you’ll see is over the year our UA is kind of very stable, but we do have kind of quarterly and even monthly spikes. But as I think the presentation states is whilst we spend aggressively where we can, which is what you’ve seen, we will then see that profit come back and we normally have a 60 day payback period for our user acquisition.
Nitish Mittersain
Okay, thank you. And can we have Ajay who’s the CEO of responding?
Ajay Pratap Singh
Sure. Thanks Nitish. Thanks for the question. When we look at the ASPL level right now we have a portfolio approach. Along with Sportskeeda we have 7, 8 other domains that we’ve acquired and managed. Yes, there has been a decline in Sportskeeda pertaining to the March core update that came in FY25 and since then we’ve seen a decline in traffic. Now this is a nominal phenomena to be honest, which happens across all the publishers. We’ve been lucky over the last five years that we’ve been able to manage it so well that never once was sportskeeda impacted. But unfortunately we were wrongly caught in the crossfire last March.
Now to address that we have significantly decreased cost. If you look at the Biovoy quarter cost comparisons we are down by 32% in terms of cost. However, we are also seeing and witnessing good growth on the other domains that we have. For example profitball network. Now profitball network yoy has seen an increase in revenue of 36% with a decrease in expense of 11% at a ytd level or 9 months level this has been the best year for profitable network. 58% increase in revenues while expenses just growing 3%. So we believe sportskeeda will also come back.
Now when it comes back we don’t know till then we want to run it lean. Just to add one more point, Pro Football Network also saw this Google Core Impact update last year and it took them around 2 1/2 to 3/4 to come back. So we believe in the next couple of updates we should see some mountback. The other thing is that while Google and relying on Google gives us high volume, we have now also started focusing a lot on other initiatives. One such initiative, if I could mention here, is Quick Rocket which is a live scoring app.
We have a well built direct sales team here in India. We’ve been working Quick Rocket app for the last one one and a half years and come this World cup and IPL we will be spending a little higher on that. So on one end we would still want to come back on Google for volumes and on the other hand we would also want to know kind of akin ourselves to the Google volatility and build more towards the new initiatives. Sure, that’s helpful. And one last question to Nitish. Sir. So sir, we obviously see that margins have expanded because of the Nordic subsidiary.
So are we seeing this trend to continue going forward for the next quarters?
Nitish Mittersain
Yeah, I think you will see higher margins and I think as our businesses, you know, focuses on the core gaming business, which is IP driven games that we make, eventually the margin should rise to, you know, beyond 20% is what we are working towards.
Kunal Bajaj
Okay, any timeline for that?
Nitish Mittersain
I think in the coming year, maybe in two, three quarters, we should get there.
Kunal Bajaj
Sure, that’s helpful. Thank you. All the best.
operator
Thank you. The next question comes from the line of Bhavik from Invexa Capital llp. Please go ahead.
Bhavik Shah
Yeah, hello sir. Am I audible?
operator
Yes, sir.
Bhavik Shah
Yeah, so when I see the presentation and the numbers, I just failed to understand like where exactly our growth will come from, say in FY27. Could you just point out some specific divisions or IPs or like things which will actually drive growth in terms of numbers one and what will lead to improvement in margins. We say we are doing IP related work, but I’m just not able to understand how that will translate to numbers in say FY27. So if you could provide some color or some guidance that would be really helpful. And what, how much of the net cash in the books and how do we plan to utilize it going?
Nitish Mittersain
Yeah, so you know, while we have many growth drivers and many things happening, maybe I’ll give you a couple of specific examples on where we see tangible growth coming in FY27. One is our portfolio of juice box games where we are doing licensing. Right. Most of the revenues that you see in the current year FY26 have come from only one game, which is Love Island. However, in the last six, nine months after we’ve acquired the business, we worked closely with the team to launch many more well known games including Big Boss in India, Big Brother globally. And we have a very large launch for the Traitors license, which is again a global launch, which is that IP is even more popular than Love Island. So we’ve got multiple products out there which we believe will drive meaningful growth in the coming year.
That’s one example. The second is Kidopia. As you can see in this quarter we got the right traction in terms of the user acquisition in the range of spends or costs we want to do. So we are going to continue to step on the pedal there and I believe you will see Kitopia growing Well again in FY27. Another example is our offline gaming businesses which are driving growth, especially Funky Monkeys. It continues to expand very actively. So I would say by and large most of our businesses are on a growth curve. We’ve got good growth plans and new IP launches for the PC and console space through curve.
Maybe I’ll just ask after I Stop talking. I’ll ask Stuart, who’s the CEO of Curve, to throw some light on that. So I think broadly we feel quite confident that our existing businesses will deliver good growth in the coming year. In terms of. Hi there. Yeah, thanks. Yeah. In terms of the cash question that you have, we have a net cash of approximately 700 crores in our books at this point of time, including our subsidiaries. In terms of usage, we will deploy in organic growth where we require the capital and we will also undertake additional M and A, especially of gaming studios going forward.
If I can just ask to what to throw a little light on what’s happening on curve and the IPs that we are adding to the portfolio, it will be helpful. Stuart, are you there?
Stuart Dinsey
Yep, yep. Thanks Nitish. Hi everybody. As Anatria mentioned earlier, we are performing in line with our expectations with a relatively high margin business and we’ve been maximizing our catalogue and we’ve also had a number of new platform initiatives going forward with the help of Nazara. Being part of the Nazara Group, we are investing in new titles and really growth for us comes from the release of new games and we have signed five or six new titles since we were acquired and they will start to appear through FY27 and FY28.
So for us it’s really about increasing the pipeline whilst retaining the relatively low cost base of running a traditional games formats publisher with a comparatively high margin outlook on the performance.
Bhavik Shah
Right, so just to understand, when we say we will expand in offline business, like how many stores do we plan to open and how much will be the investment we require generally and what is the time we take to break even at the stores?
Nitish Mittersain
Look, like I said in our earlier questions, sorry, this is to it on offline, so I’ll take it up. Shreyas, are you there? Yeah, yes, of course Shreyas, why don’t you answer that question.
Terry Lee
As this was explained before as well. So in a steady state, we are looking at 25 to 30% ETA margin coming in with a typical breakeven point at 18 to 24 months in the offline business, both for Smash and Funky Monkeys.
Bhavik Shah
Yeah, and what is generally economics for to open a new outlet or a store?
Terry Lee
So right now, given that at Funky Monkey, the growth sector that we are looking at, this is a typical investment from a 1 to 2 stock CR per store at Smash. Like how we had earlier also spoken smash 2.0 which will open in H1 next year, post that we’ll be able to give you More clarity on the economics for smash.
Bhavik Shah
Understood, thank you.
Nitish Mittersain
I just, I just want to step in and add one more, you know, to your earlier question on the growth for FY27. I think one more area that we are quite excited about growth into FY27 is our animal jam business of Wildworks because there are multiple things we have done there in terms of the existing product, launching it on Roblox and for the first time that studio wildworks is launching a new game called Go Slinky. So a lot of activity happening there. And if I may just call Jeff, who is the CEO of WildWorks to give us a quick overview, it will be helpful.
Jeff, over to you.
Jeff Amis
Thanks, Natisha. And thanks. Yeah, thanks for the question. I hope you can hear me. Okay. Yes, we are very excited about an alpha release of Slinky. This is Go Slinky Go, which is a hyper casual game and the likes of Monopoly Go. It has been received so well by those that we’ve done some beta and alpha testing with so far will go to public release by the end of the first quarter of FY27. And we really are advocates that growth within WildWorks is going to principally come from new games. And we’re thrilled over the last several months of development of this new game that we get to launch in the coming months.
Animal Jam is noted on Roblox. Now it will just stay there for a little bit before we’re going to see the performance increase and we’ll be patient with it. But our core game both on desktop and mobile for Animal Jam continues to hold steady and we’re thrilled with opportunities that are coming up to monetize Even better as we now have validating our data appropriately after a massive migration away from from Amazon or AWS to Google cloud platform and with the COE at.
operator
Sir, the line has been disconnected.
Nitish Mittersain
Okay. Anyway, I think see what the points can carry on.
Bhavik Shah
Any numerical guidance which you can provide.
Nitish Mittersain
Not at this point.
Bhavik Shah
All the best. Thank you so much.
operator
Thank you. As there are no further questions from the participants, I now hand the conference over to the management for closing comments. Thank you. And over to you sir.
Nitish Mittersain
Thank you everyone for the detailed questions. Thank you for all the Nazara management to be on the call, many of them at very early mornings all over the world and wish you all a very good day.
operator
Thank you on behalf of Choice Equity Broking Private Limited. That concludes this conference. Thank you for joining us and you may now disconnect your lines. Thank you.