Gaming and sports media company Nazara Technologies reported a 47% jump in its net profit to Rs 29.5 crore for the quarter ended December, against Rs 20.1 crore in the year-ago period, as it cut back on marketing expenses.
However, revenue grew only 2% year-on-year to Rs 320.4 crore, mainly due to decline in sales of digital marketing arm Datawrkz and skill-based gaming platform Openplay, the company said.
Total expenses fell to Rs 282.7 crore in Q3 from Rs 284.3 crore a year ago, mainly due to a 26% drop in advertising and marketing expenses. Lower expenses also drove its margins higher.
The company’s Ebitda margin increased to 11.8% in Q3 from 9.7% in the year-ago quarter, with its esports business recording 79% Ebitda growth. Ebitda increased 24% to Rs 37.7 crore as against Rs 30.5 crore a year ago.
“We saw healthy growth in Animal Jam and Sportskeeda resulting in our EBITDA increase by 24% year-on-year,” said Nitish Mittersain, founder, CEO and joint MD of the company.
Revenue from its largest segment —esports — rose 27% year-on-year to Rs 193.7 crore, while that from its gaming division fell 12% on year to Rs 101.5 crore. Adtech segment reported a deeper slump of 44% on year to Rs 26.1 crore.