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Nazara Technologies posted a net loss of Rs 33.9 crore, compared with a net profit of Rs 16.2 crore a year earlier, as new regulations in India’s real-money gaming (RMG) sector hit the Mumbai-based company’s bottom line.
Nazara said the loss during the quarter was mainly due to an impairment on its investment in PokerBaazi’s parent company, Moonshine Technologies. The company had to mark down the value of this investment after new regulations banned real-money gaming operations in the country.
“During the quarter, new regulations in India’s online skill-based real-money gaming space prompted Nazara to record an impairment on its investment in Moonshine Technologies (PokerBaazi) based on fair valuation as per accounting standards,” it said in the statement.
Despite this, Nazara's operating revenue rose 65% year-on-year (YoY) to Rs 526.5 crore in the September quarter, driven by growth across its mobile, console, and offline gaming segments.
Nazara also said it revalued its remaining stake in Nodwin Gaming at fair market value, which was de-subsidiarised earlier this year. This led to a one-time gain that partly offset the PokerBaazi-related impairment.
The company further announced an investment of up to Rs 27.15 crore in digital entertainment company Rusk Media. The investment will be made through a secondary purchase of 4,276 compulsorily convertible preference shares (CCPS) from Nodwin Gaming, representing a 5.23% stake in Rusk Media. Once completed, Nazara will hold 7.18% of Rusk Media on a fully diluted basis.
In addition, the board approved a new employee stock option plan scheme 2025 under which up to 18.52 lakh stock options can be granted, convertible into equity shares of Rs 2 each.
“We are evolving from publishing individual games to building and scaling long-term franchises… The accounting adjustments this quarter, including the Moonshine impairment and Nodwin fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business,” said Nitish Mittersain, joint managing director and CEO of Nazara Technologies.
Nazara’s expenses ballooned during the quarter, with total expenditure rising to Rs 534.2 crore, compared with Rs 321.2 crore in the same period last year. Advertising and promotion costs nearly tripled to Rs 116.4 crore during the quarter.
Shares of Nazara closed at Rs 256.5 on Wednesday, up 0.1% from the previous close. The results were announced after market hours.
Nazara said the loss during the quarter was mainly due to an impairment on its investment in PokerBaazi’s parent company, Moonshine Technologies. The company had to mark down the value of this investment after new regulations banned real-money gaming operations in the country.
“During the quarter, new regulations in India’s online skill-based real-money gaming space prompted Nazara to record an impairment on its investment in Moonshine Technologies (PokerBaazi) based on fair valuation as per accounting standards,” it said in the statement.
Despite this, Nazara's operating revenue rose 65% year-on-year (YoY) to Rs 526.5 crore in the September quarter, driven by growth across its mobile, console, and offline gaming segments.
Nazara also said it revalued its remaining stake in Nodwin Gaming at fair market value, which was de-subsidiarised earlier this year. This led to a one-time gain that partly offset the PokerBaazi-related impairment.
The company further announced an investment of up to Rs 27.15 crore in digital entertainment company Rusk Media. The investment will be made through a secondary purchase of 4,276 compulsorily convertible preference shares (CCPS) from Nodwin Gaming, representing a 5.23% stake in Rusk Media. Once completed, Nazara will hold 7.18% of Rusk Media on a fully diluted basis.
In addition, the board approved a new employee stock option plan scheme 2025 under which up to 18.52 lakh stock options can be granted, convertible into equity shares of Rs 2 each.
“We are evolving from publishing individual games to building and scaling long-term franchises… The accounting adjustments this quarter, including the Moonshine impairment and Nodwin fair value gain, are one-time items and do not impact operating cash flows or the momentum of our core business,” said Nitish Mittersain, joint managing director and CEO of Nazara Technologies.
Nazara’s expenses ballooned during the quarter, with total expenditure rising to Rs 534.2 crore, compared with Rs 321.2 crore in the same period last year. Advertising and promotion costs nearly tripled to Rs 116.4 crore during the quarter.
Shares of Nazara closed at Rs 256.5 on Wednesday, up 0.1% from the previous close. The results were announced after market hours.