{"id":156192,"date":"2023-11-14T06:05:53","date_gmt":"2023-11-14T11:05:53","guid":{"rendered":"https:\/\/44.250.171.167\/?p=156192"},"modified":"2023-11-14T06:05:55","modified_gmt":"2023-11-14T11:05:55","slug":"nazara-technologies-ltd-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/nazara-technologies-ltd-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Nazara Technologies Ltd Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Nazara Technologies Ltd (NAZARA) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue increased 13% year-on-year to INR297.2 crores.<\/li>\n<li>EBITDA grew 30% year-on-year to INR 27.9 crores.<\/li>\n<li>PAT increased 53% year-on-year to INR 24.2 crores.<\/li>\n<li>Gaming segment revenue grew 43% and EBITDA 14% year-on-year in Q2.<\/li>\n<li>eSports segment revenue grew 21% and EBITDA 16% year-on-year in H1 FY&#8217;24. Expect momentum in IPs around popular games going forward.<\/li>\n<li>Adtech business overcoming challenges, margin forecast improving in Q2. Focus on higher margin clients and expanding client base.<\/li>\n<\/ul>\n<\/li>\n<li><strong>M&amp;A Plans<\/strong>\n<ul>\n<li>Consolidated cash reserves of over INR1,300 crores.<\/li>\n<li>Recent fundraising of INR 510 crores from Nikhil Kamath and SBI Mutual Fund.<\/li>\n<li>Well positioned to capitalize on M&amp;A opportunities to accelerate growth.<\/li>\n<li>Corporate M&amp;A to target minimum INR100 crores revenue companies.<\/li>\n<li>No new business segments, acquisitions to be synergistic.<\/li>\n<li>Aim to deploy some capital in next couple of quarters.<\/li>\n<li>Hope to see some deployment before end of current fiscal.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Focus Areas<\/strong>\n<ul>\n<li>Businesses consolidated and focused on strengthening KPIs.<\/li>\n<li>Efforts to accelerate organic growth and enable strategic acquisitions.<\/li>\n<li>Confident in ability to deploy cash reserves effectively.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Kiddopia Business<\/strong>\n<ul>\n<li>Revenue grew 8% year-on-year in H1 FY&#8217;24 to INR113.9 crores.<\/li>\n<li>Focused on acquiring customers at optimal CAC to ensure healthy margins.<\/li>\n<li>Resulted in EBITDA margin expansion from 17.5% in H1 FY&#8217;23 to 25.5% in H1 FY&#8217;24.<\/li>\n<li>Working on initiatives like licensing IPs to drive growth.<\/li>\n<li>Facing challenges scaling Google ad spend and working with Google to resolve spend scaling issues.<\/li>\n<li>Considering other ad networks to open up scale.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Animal Jam Acquisition and Outlook<\/strong>\n<ul>\n<li>Optimized costs leading to 24% EBITDA margin in Q2 FY&#8217;24.<\/li>\n<li>Improved monetization loops resulting in 46% increase in ARPDAU.<\/li>\n<li>Focus on licensing deals to introduce popular IPs and drive organic growth.<\/li>\n<li>Fixed margins first, now at 22-24% vs single digits earlier.<\/li>\n<li>Revenue growth to happen in coming quarters.<\/li>\n<li>Will invest more in user acquisition and marketing<\/li>\n<\/ul>\n<\/li>\n<li><strong>GST Impact on Gaming<\/strong>\n<ul>\n<li>28% GST levied on entry fees effective October 1.<\/li>\n<li>Nazara absorbing tax impact currently, eroding margins.<\/li>\n<li>Implementing cost optimization and increasing commission rates.<\/li>\n<li>Confident business will stabilize and set base for future growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Nazara&#8217;s Publishing Strategy<\/strong>\n<ul>\n<li>Will take equity in developers requiring capital for teams\/development.<\/li>\n<li>With developed games, may not take equity upfront.<\/li>\n<li>Aim to build large consumer base across many published games.<\/li>\n<li>Nazara SDK to enable cross-promotion and first-party data.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Indian User\u2019s Monetization Outlook<\/strong>\n<ul>\n<li>Seeing better in-app purchase conversions as users evolve.<\/li>\n<li>Tailwind from growth of digital payments in India.<\/li>\n<li>Monetization still far behind global markets, but incremental improvement happening.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Nodwin eSports Outlook<\/strong>\n<ul>\n<li>Currently in investment phase, not focused on margins.<\/li>\n<li>Stated policy is margins can increase to 10-15% over time.<\/li>\n<li>No specific margin guidance at this point.<\/li>\n<li>Content views declined due to ban and subsequent review of popular games in Q1.<\/li>\n<li>Big IPs scheduled in Q3 and Q4 as key season.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Datawrkz Adtech Business Outlook<\/strong>\n<ul>\n<li>Adtech facing global headwinds like lower ECPMs, but Datawrkz provides user acquisition service to clients.<\/li>\n<li>Focusing on higher margin clients and product side.<\/li>\n<li>Still huge room for growth and margin expansion.<\/li>\n<li>Leveraging it for other Nazara games.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Pro Football Network (PFN) Scaling<\/strong>\n<ul>\n<li>Acquired when still negative margin business.<\/li>\n<li>Aimed for breakeven in first year and achieved breakeven month in September.<\/li>\n<li>Applying Sportskeeda playbook for growth.<\/li>\n<li>Expects to scale revenues much higher with profitability.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Full Year Outlook<\/strong>\n<ul>\n<li><span style=\"font-size: inherit;\">Expect higher revenue and EBITDA growth in H2 vs H1.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Nazara Technologies Ltd (NAZARA) Q2 FY24 Earnings Concall Financial Performance Revenue increased 13% year-on-year to INR297.2 crores. EBITDA grew 30% year-on-year to INR 27.9 crores. PAT increased 53% year-on-year to INR 24.2 crores. Gaming segment revenue grew 43% and EBITDA 14% year-on-year in Q2. eSports segment revenue grew 21% and EBITDA 16% [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,8],"tags":[10169,11386,59],"class_list":["post-156192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-technology-stocks","tag-earnings","tag-esports","tag-gaming"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":145756,"url":"https:\/\/alphastreet.com\/india\/nazara-technologies-ltd-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":156192,"position":0},"title":"Nazara Technologies Ltd Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 11, 2023","format":false,"excerpt":"Key highlights from Nazara Technologies Ltd (NAZARA) Q4 FY23 Earnings Concall Management Update: [00:01:43] NAZARA achieved a milestone in FY23 with revenues surpassing INR 1,000 crores for the first time and EBITDA of INR109.7 crores. 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Manish Agarwal, CEO said the company would like to continue to work from a revenue growth point of view and\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":139078,"url":"https:\/\/alphastreet.com\/india\/nazara-technologies-limited-q3fy23-earnings-summary\/","url_meta":{"origin":156192,"position":2},"title":"Nazara Technologies Limited Q3FY23 Earnings Summary","author":"Karan_Singh","date":"January 24, 2023","format":false,"excerpt":"With operations in emerging and matured international markets, including Africa and North America, Nazara Technologies is the top gaming and sports media platform with an Indian base. It offers services in the interactive gaming, eSports, and game - based learning ecosystems. Financial Results: From \u20b9 186 crores in Q3FY22 to\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/08\/iStock-687982910.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":158865,"url":"https:\/\/alphastreet.com\/india\/indian-railway-catering-and-tourism-corp-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":156192,"position":3},"title":"Indian Railway Catering and Tourism Corp. Ltd Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"February 15, 2024","format":false,"excerpt":"Key highlights from Indian Railway Catering and Tourism Corp. Ltd (IRCTC) Q3 FY24 Earnings Concall Revenue Growth Q3 revenue reached highest ever at INR 1,118 crores, up 21.8% YoY and 12.4% QoQ. Catering revenue grew 29.1% YoY to INR 508 crores. 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Q3 FY26 Earnings Results Revenue from Operations: \u20b9405.9\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/156192","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=156192"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/156192\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=156192"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=156192"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=156192"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}