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Nazara Technologies Q1 Review - Result Beat, Profitability Sees Sharp Uptick: Dolat Capital

Nazara Technologies Q1 Review - Result Beat, Profitability Sees Sharp Uptick: Dolat Capital

An attendee plays a video game during an event in Tokyo. (Photographer: Kiyoshi Ota/Bloomberg)
An attendee plays a video game during an event in Tokyo. (Photographer: Kiyoshi Ota/Bloomberg)

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Dolat Capital Report

Nazara Technologies Ltd. reported revenue growth of 6.3% QoQ (our estimate: 12.3%).

The miss was led by slower traction in Gamified learning business (up 2.9% QoQ versus estimate of 59.0%) and Nodwin business (up 4.3% QoQ versus estimate of 22.2%).

The performance of other businesses of Nazara Technologies was better than estimates: Telco: 0.4% / Freemium: 33.9% / Sportskeeda: 26.0% / real-money gaming: 8.5%. (QoQ growth).

Operating profit margin improved to 12.9% (our estimate: 10.7%) due to better profitability across business segments.

Although Gamified Early Learning’s growth was soft but that resulted in improved margins to 36.3% from 12.6% on account of lower upfront advertising spends due to Apple’s privacy policy changes impacting attribution.

Click on the attachment to read the full report:

Dolat Capital Nazara Q1FY22 Result Update.pdf

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