Thread by @ValueEducator

#Nazaratechnologies Q3 2022 Concall Highlights 🎱🎲

Financial Update

1. For Q3FY22 revenue was ₹185.8 Cr vs ₹130.4 Cr in Q3FY21 a growth of 42% on YoY basis.

2. Q3 EBITDA was at ₹30.2 Cr as compared to ₹27.3 Cr in the same quarter of the previous year.

3. For 9M FY22 revenue was ₹446.6 Cr vs ₹330.8 Cr in 9MFY21 a growth of 35% on YoY basis.

4. 9MFY22 EBITDA surged by 141% to ₹79.7 Cr as compared to ₹33.1 Cr in 9MFY21.

5. Esports segment recorded revenue of ₹109.3 Cr in Q3FY22 vs ₹57.8 Cr last year in the same quarter, a growth of 89% YoY basis.
Their Gamified early learning segment recorded revenue of ₹47.2Cr.

6. Freemium segment had revenue of ₹5.7 Cr

7. Real money gaming segment had revenue of ₹10.7 Cr, growth of 95% YoY basis.

8. Company’s telco subscription segment recorded revenue of ₹12.9 Cr.

Business Update

1. In 2021 Gaming startups in India attracted approx $1.6 billion in investments in the first 9M .With 5g coming in, the gaming industry is very likely to grow in future.

2. In Q3 the company acquired 100% stake total consideration of ₹186.4 Cr in Hyderabad based skill gaming company OpenPlay Technologies Private Limited

3. Company witnessed 75% YoY growth in the esports segment for 9MFY22 led by strong growth in revenue across all subsegments in Nodwin and SportsKeeda.

4. eSports has witnessed a 70% revenue CAGR over the past 3 years. This segment now contributes the highest revenue in Nazara portfolio with 48% contribution in 9MFY22 revenue vs 37% in 9MFY21.

5. The addition of original IPs such as NH7 Weekender and expansion of their esports business into the Middle East via acquisition of Publishme has further accelerated the growth momentum.

6. NODWIN Gaming continued revenue growth momentum with 71% growth in Q3FY22.

7. Media revenue increased by 28% YoY in Q3FY22, accounting for 33% of total revenues in Q3FY22.

8. Sportskeeda delivered growth of 127% YoY in 9MFY22. Presence of premium cricket IPs in Q3 also resulted in increased revenue

contribution of cricket in overall revenue of Sportskeeda.

9. MAU increased by 6% QoQ due to the T20 World Cup and the second half of the IPL in Q3.

10. Company wants to expand their offering into more sports which are adjacent to them like MMA, NBA, NFL etc.

11. Kiddopia saw an increase in active subscribers by 3,039 paying subscribers to a total of 327,738 subscribers at the end of Q3.

12. Q3FY22 revenue of paperboat kiddopia saw a 1% growth on YoY basis.These numbers are because of change in accounting policy in paperboat kiddopia, company is now recording revenue based

on the day that subscriber came in that month vs taking the whole month because earlier apple and google were not providing day wise data.

13. Cost per trial for Q3FY22 remained elevated at $34.5 mainly due to a change in Apple privacy policy.

14. However,the company expects cost per trial to revert to the range of $ 26 to $ 29 in coming quarters.

15. For 9MFY22, Telco Subscription business has declined by 17%.

16. The drop in revenue was mainly due to decline in revenue from India Business while revenue from the Non-Indian geographies has remained flat YoY.

However, this segment is not a growth driver for Nazara