Q1 2027 Nazara Technologies Ltd Earnings Call Transcript
Key Points
- Nazara Technologies Ltd (BOM:543280) reported a 14% year-on-year increase in gaming revenue to INR275 crores, with a healthy EBITDA margin of 19.5% and all gaming businesses remaining EBITDA positive.
- The company is accelerating its acquisition of BlueTile and Westplay to 100% ownership for a fixed cash consideration of USD303 million, providing certainty of ownership, full economics, and immediate operating integration.
- Kidopia, a longstanding concern, saw a turnaround with revenue growing 19% year-on-year, driven by scaled user acquisition and improving unit economics.
- Fusebox Games, the developer of Love Island, grew revenue by 12% year-on-year, with the game ranking number one in free apps and number five in top-grossing apps in the US.
- The appointment of Raymond Stauffer, founder and CEO of BlueTile, as the new CEO of Nazara Technologies Ltd (BOM:543280) brings a proven track record in AI-enabled development and capital-efficient growth.
- Curve Games has a strong pipeline of new titles, with 'Sovereign Tower' and 'Dragon Shelter' exceeding expectations on wishlists, positioning the company for future growth.
- Offline gaming, particularly Funky Monkey, delivered strong performance with revenue growing 58% year-on-year, driven by same-store sales growth and store expansion.
- Nazara Technologies Ltd (BOM:543280) reported a net loss of INR82 crores, largely attributable to share of loss from associates and impairment losses, including a complete write-off related to the Moonshine investment.
- Consolidated EBITDA margins declined meaningfully due to increased user acquisition spending, with BlueTile's EBITDA margin dropping from 17.6% to 11% as UA spend rose from 78% to 85% of revenue.
- The accelerated payment structure for the BlueTile acquisition requires a significant cash outflow of USD214 million by April 1, 2027, potentially leading to dilution or increased debt.
- Curve Games' EBITDA margin of 27% in Q1 FY27 is lower than the 40%+ margin delivered last year, as the company invests in new titles with a 12-18 month development cycle.
- The AdTech business, while growing revenue, has not seen proportional EBITDA growth due to a high proportion of pass-through revenue (60-80%) and upfront investments in product and sales.
- Sportskeeda continues to face challenges from Google algorithm changes, with revenue deceleration and a need for cost optimization, though management believes it has hit bottom.
- The company did not provide any forward guidance on revenue, EBITDA, or margins, leaving investors without clear expectations for future performance.
Ladies and gentlemen, good day and welcome to the Inazara Technologies Limited Q1 FY27 Earnings Conference Call hosted by ICICI Securities 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 the conference call, please signal an operator by pressing and 0 on your touch tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Niran Dhumal from ICICI Securities.
Thank you, and over to you, sir.
Good morning, everyone, and welcome to Nazara Technologies Limited Q1 FY27 Post-Results Earnings Call. The call will start with brief management remarks on the earnings performance, followed by a Q&A session.
Nazara Management will be represented by Nishesh Mitterson, MD and CEO, Nazara Technologies Limited. Rohit Sharma, Executive Director, Nazara Technologies Limited. Rakesh Shah, CFO, Nazara Technologies Limited.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
