NAZARA

stock review

Technologies (Nazara) delivered robust Q3FY25 growth, led by ad-tech and gaming segments. Growth in ad-tech was led by the recent acquisition in the UK (Space and Time Media). As this is integrated, it should aid margin improvement. In gaming, ‘Fusebox’ acquisition aided strong revenue growth (Fusebox grew 132% YoY). Recently acquired IPs such as Bigg Boss and Big Brother bode well for future growth. In eSports, Nodwin’s revenue grew 48% YoY on a comparable basis. Onetime impairment of INR 153mn in ‘Wings’ and INR 80mn due to a last-minute event cancellation meant that Nodwin remained EBITDA negative. Also, the recently acquired (not consolidated) ‘Pokerbaazi’ has turned profitable. This may not sustain in Q4FY25 as Nazara may need to invest in communication.