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Nazara Technologies surges 8%, hits 52-week high on healthy outlook

For the first half (April to September) of the financial year 2023-24 (H1FY24), Nazara had reported 13 per cent year-on-year (YoY) growth revenue at Rs 551.7 crore

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SI Reporter

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Shares of Nazara Technologies rallied 8 per cent on the BSE to hit a 52-week high of Rs 974.80 in Friday’s intra-day trade on the back of healthy business outlook.

The stock of the digital entertainment company surpassed its 52-week previous high of Rs 927.25 touched on September 6, 2023. It had hit a record high of Rs 1,678 on October 11, 2021.

Nazara is a diversified gaming and sports media platform headquartered in India with a presence in both developing and developed global markets such as Africa and North America.

The company’s portfolio includes interactive gaming, eSports, and adtech ecosystems.

Nazara has several popular IPs within the gaming segment, such as Kiddopia and Animal Jam which are focussed on gamified early learning, World Cricket Championship and Classic Rummy in skill-based real money gaming (RMG).

Within eSports, Nazara has leadership positions through Nodwin, the dominant player in eSports in India and South Asia and Sportskeeda, a multi-sports content destination catering to the sports fan in India and the United States.

For the first half (April to September) of the financial year 2023-24 (H1FY24), Nazara had reported 13 per cent year-on-year (YoY) growth revenue at Rs 551.7 crore.

Profit after tax climbed 42 per cent YoY at Rs 45 crore. The company’s EBITDA margin improved to 11.1 per cent compared to 10.6 per cent in the comparative period of the previous year.

During the September quarter, Nazara secured fresh capital of Rs 510 crore from investors like Zerodha co-founder Nikhil Kamath and SBI Mutual Fund.

With a consolidated cash position of around Rs 1,300 crore, Nazara said it is exceptionally well-positioned to seize acquisition opportunities and expedite its growth in the years ahead.

The management said Nazara recognizes the substantial 'Make In India' potential within the gaming industry, where Indian developers have the opportunity to create top-tier games for both the domestic and international markets.

The company’s newly launched initiative, 'Nazara Publishing,' is geared to offer capital and support services to empower developers in delivering high-quality games to the expanding consumer base.

The gaming industry is witnessing rapid expansion worldwide and appears to be on the cusp of a period of substantial growth, fuelled by the widespread availability of smartphones, the affordability of technology, and rising disposable incomes.

This presents a remarkable opportunity for the industry to contribute significantly to the economy, with incremental penetration into untapped markets driving expansion.

As the number of gamers in India grows, convenient gaming culture is anticipated to emerge, further catalysing industry growth, Nazara said in its FY23 annual report.

Nazara aims to maintain its market leadership and capitalise on the immense potential for growth in the Indian mobile game industry.

The recent acknowledgement of eSports by the government as a part of a multi-sports event will open a new casement of opportunities.

With the stronghold in the segment through Nodwin and Sportskeeda, Nazara is well-positioned to capitalise on the opportunities in the Indian eSports division and make the most of it, the company said.

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First Published: Jan 12 2024 | 11:41 AM IST

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