Gaming and sports media platform Nazara Technologies Ltd is looking at profitable game studios for acquisitions with a revenue of ₹100-250 crore and a margin of 15-20%. “We are looking at businesses or studios that are at least ₹100-250 crore in revenues with EBITDA margin over 15-20%,” Nitish Mittersain, Joint MD and CEO, Nazara Technologies said.
The company has set aside about $100 million, for mergers and acquisitions in markets like India, Europe and North America. “Hopefully in the coming quarters – Q1FY25 or Q2FY25 we should be able to close some deals,” he said.
The company is specifically focused on gaming studios similar to the WildWorks acquisition that it had done in 2023. Nazara Technologies had acquired 100% of US-based children’s interactive entertainment company WildWorks and its IP from existing shareholders in an all-cash transaction.
Nazara Technologies operates across three business segments - Gaming, E-sports and Ad Tech. Gaming (Kiddopia + Real money gaming) contributed to 36% of revenue and 56% of EBITDA in the 9M ending December 2024 and E-sports contributed to 55% of revenues and 38% of EBITDA.
On December 20, 2023, Nazara Technologies announced partnerships to publish five innovative games in India, which include 'Gravity Shooter' - 2D action game; 'World Cricket League - 3D multiplayer cricket experience; 'Hacked - Password Puzzle game; 'Laser Tanks' and 'Paperly'.
Also Read | Nazara Tech’s Nodwin Gaming to acquire Ninja Global to expand business in Turkey and Middle East
Nazara Technologies is currently seeking further clarity regarding Real Money Gaming.
The Classic Rummy business has shown signs of improvement but might incur a minor loss in the fourth quarter.
In the third quarter of FY24 compared to the same period last year the company reported an increase in revenue by 1.8% to ₹320.4 crore from ₹314.8 crore, increased EBITDA to ₹37.7 crore from ₹30.5 crore, improved EBITDA percentage to 11.8% from 9.7% and profit after tax (PAT) amounted to ₹25.7 crore compared to ₹19.8 crore. Other income also surged to ₹17.9 crore from ₹11.5 crore YoY.
The current market capitalisation of the company is ₹4,958.79 crore.
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