Q4 FY21 (JAN-MAR 2021) Concall Summary

NAZARA TECHNOLOGIES LIMITED

Concall Date: 31 May 2021

Revenue: ₹123.4 cr (▲41.7%) Net Profit: ₹4.2 cr (▲160.0%)

FINANCIAL HIGHLIGHTS
PARTICULARS Q4 FY21 Q4 FY20 Change % FY21 FY20 Change %
(₹ cr) (₹ cr) YoY (₹ cr) (₹ cr) YoY
Revenue from Operations 123 87 41.7% 454 248 83.5%
Net Profit 4 (7) 160% 14 (27) 150.7%
EBITDA Margin 11.1% (Q4) 12.7% (FY21)

 Gamified learning and e-sports segment contributed 80% of the revenue in Q4 FY21.
 In FY21, the company recorded a cash flow from operations of ₹67.4 crore.
 It witnessed an EBITDA growth of 508.2% from ₹9.8 crore in FY20 to ₹59.6 crore in FY21.
 Cash and cash equivalents, including liquid investments stood at ₹478.4 crore as on 31st March, 2021
v/s ₹223.4 crore in FY20.
 Net worth as on 31st March, 2021 stood at ₹779 crore v/s ₹570 crore, growth of 36.7% YoY.

BUSINESS HIGHLIGHTS
 The company has diversified business segments including e-sports, gamified early learning,
freemium, sports fantasy and telco subscription.
 Average monthly active users for FY21 stood at 6.3 crore, growth of 56% YoY.
 Friends of Nazara ecosystem allows the company to acquire fast growing gaming companies with
good growth trajectory.
 E-sports segment reported an EBITDA margin of 17.9% in FY21 v/s 8.9% in FY20.
 E-sports segment which offers Nodwin gaming & Sportskeeda, grew by 102% YoY to ₹170.1 crore in
FY21 and it contributed 37% towards the total revenue base.
 Nodwin gaming contributed 80% to the total price pool of e-sports industry for FY21.
 In gamified early learning segment, Kiddopia which caters to the market of North America,
contributed 39% of the revenue and stood at ₹175.8 crore in FY21, a growth of 819%.
 In FY21, the average revenue per user (ARPU) of Kiddopia stood at $6.3-$6.4 per month.
 Telco subscription segment contributed 17% of the total revenue in FY21 and the company expects
the contribution to de-grow further on account of growing traction in gamified learning, e-sports and
freemium segments.
 Concall Summary
NAZARA TECHNOLOGIES LIMITED

 Owing to the statutory risk in sports fantasy segment, contributing 3% of the total revenue, the
company expects to maintain break-even levels of contribution going forward.

FUTURE OUTLOOK
 Gamified learning and e-sports segments will continue to be a major growth driver of the company
in the coming years.
 The company plans to roll out gamified learning platform operations into Spanish, French and
German speaking geographies.
 It would use its cash balance to fund inorganic growth opportunities in terms of geographic and
demographic expansion.
 It focuses onto growing user base, deepening market penetration, expanding into complementary
products and new markets.
 The company is in a good position to continue its strategy and maintain market leading position going
forward.
 After the dust settles around the pandemic, it is looking at conducting offline events contributing
more towards the growth of e-sports segment.

SEBI Registration no: IHN3000007493

Disclaimer:

This document has been prepared to provide a brief summary of the conference call conducted by the companies and
is intended to be used for learning enhancements. Nothing contained herein should be construed as a
recommendation on any stock or sector.