Q3 2026 Nazara Technologies Ltd Earnings Call Transcript
Key Points
- Nazara Technologies Ltd (BOM:543280) reported a significant increase in EBITDA, up 29.4% to INR67.8 crores, with margins expanding to 16.7% due to a focus on higher-margin IP-based gaming business.
- The company's core gaming segment revenue grew by 119% year-on-year to INR793.8 crores, with an EBITDA growth of 172% to INR188 crores, resulting in an EBITDA margin of 23.8%.
- Kiddopia achieved a resumption in subscriber growth, driven by effective user acquisition and data analytics strategies, indicating potential for future revenue growth.
- Nazara Technologies Ltd (BOM:543280) is actively expanding its offline gaming business, with Funky Monkey centers showing strong profitability and rapid expansion.
- The company is making strategic investments in the Indian gaming ecosystem, such as nCore Games and Rusk Media, to capitalize on the growing gaming market in India.
- Nazara Technologies Ltd (BOM:543280) experienced a 24.1% decline in revenues to INR406 crores due to the deconsolidation of its NODWIN esports business.
- Kiddopia's margins have consistently dipped, reaching 9% this quarter, due to increased spending on customer acquisition.
- The offline gaming segment shows seasonality in margins, with fluctuations observed between quarters.
- The company faces challenges in monetizing the Indian gaming market, which is currently not in the top 10 globally for monetization despite high download numbers.
- The impairment and cessation of Freaks 4U impacted the financial performance, with losses from Moonshine offsetting gains from NODWIN.
Ladies and gentlemen, good day, and welcome to Nazara Technologies Q3 FY '26 earnings conference call hosted by Choice Equity Broking Private Limited. (Operator Instructions) 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.
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 Q3 FY '26 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 Mittersain, CEO and Joint MD, Nazara Technologies; Mr. Rohit Sharma, Executive Director, Nazara Technologies; Mr. Rakesh Shah, CFO, Nazara Technologies; Ms. Anupriya Sinha Das, Head of Corporate Development, Nazara Technologies; Mr. Terry Lee, CEO of Fusebox
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