Financial Performance Overview
Consolidated Q1 FY27 Performance:
- Revenue: INR 429 crores
- EBITDA: INR 46 crores
- PAT Loss: INR 82 crores (attributable to share of loss from associates and impairment loss)
- Excluding NODWIN's deconsolidation impact, comparable consolidated revenue grew approximately 9% year-on-year
Gaming Segment Performance:
- Revenue: INR 275 crores (14% YoY growth)
- EBITDA Margin: 19.5%
- All gaming businesses remained EBITDA positive with positive growth
Strategic Developments
Bluetile and BestPlay Acquisition Amendment:
- Board approved amendment to acquire 100% of Bluetile and BestPlay for fixed cash consideration of $303 million
- $89 million payable at closing, remaining $214 million payable in agreed tranches by April 1, 2027
- New structure provides certainty of ownership, full economics upon closing, single owner governance, and immediate operating integration
- Bluetile and BestPlay reported Q1 FY27 revenue of INR 518 crores and EBITDA of INR 55 crores
- Expected consolidation from Q2 FY27 onwards
Management Changes:
- Appointment of Raymond Stauffer (Bluetile CEO and founder) as CEO of Nazara Technologies effective September 1, 2026
- Nitish Mittersain will continue as Founder and Managing Director, focusing on long-term strategy, portfolio direction, and key relationships
Segmental Performance Breakdown
Mobile Gaming (Bluetile and BestPlay):
- 54% revenue growth year-on-year
- UA spend increased from 78% to 85% of revenue
- Revenue net of UA spend increased from INR 73 crores to INR 80 crores
- EBITDA held flat due to increased UA investment
Kiddopia:
- Revenue grew 19% year-on-year in Q1 FY27
- Higher UA spend deployed against improving unit economics
- 24-month LTV/CAC continues trending upwards
Animal Jam:
- Revenue increased 11% year-on-year
- Supported by consistent content cadence and continued growth investment
Fusebox Games (Love Island):
- Revenue grew 12% year-on-year to INR 82 crores
- Love Island ranked #1 in free apps and #5 in top-grossing apps in the U.S.
- Investing in Big Brother's growth and development of new game Traitors
PC and Console Publishing:
- Revenue: INR 53 crores
- EBITDA: INR 14 crores (27% EBITDA margin)
- Transaction sales for Human: Fall Flat and For The King II increased year-on-year
- More than 60% of development investment allocated to new signings
- New releases beginning from Q2 FY27
Offline Gaming:
- Revenue: INR 34 crores
- EBITDA: INR 11 crores (33% EBITDA margin)
- Funky Monkeys revenue grew 58% year-on-year driven by same-store sales growth and store expansion
- SMAAASH 2.0 reimagined format development in full swing, expected launch between January-March 2027
- Total capital commitment approximately INR 50 crores across both businesses
Other Businesses Performance:
Datawrkz:
- Revenue: INR 126 crores
- EBITDA: INR 3 crores
- Focus on scaling higher margin products like Vizibl and expanding into newer markets
Space & Time:
- Grew EBITDA year-on-year
- Demonstrated margin resilience through softer demand environment
Absolute Sports:
- Revenue: INR 28 crores
- EBITDA: INR 1 crore
- Sportskeeda delivered positive EBITDA at lower cost base
- Pro Football Network delivered best Q1 with 19% EBITDA margin versus break-even in Q1 FY26
NODWIN Gaming:
- Q1 traditionally slowest quarter
- Stable revenue growth with losses substantially lower year-on-year
- Comic Con Mumbai was sold-out show
- IP expanding to 14 events in India this year
- Comic Con World registered as global IP
- Targeting organic growth of 30%+ for FY27
- Progressing towards IPO readiness
Acquisition Financing Details
Bluetile Acquisition Payment Schedule:
- $75 million due in 90 days from call date (approximately November 2026)
- $35 million due in December 2026
- Remaining amount payable before April 1, 2027
Funding Sources Considered:
- Bluetile's existing cash balance (~$20 million)
- Cash flow generated by Nazara and Bluetile
- Debt component
- Equity fundraising
- Potential stake sales (including NODWIN secondary sale)
Additional Q&A Highlights
Tax Liability Clarification:
- Exposure limited to extent of investments in real money gaming companies
- Conservative approach: written off investments completely
Share of Loss Explanation:
- INR 62 crores share of loss primarily from write-offs on remnant values related to Moonshine transaction
- Not primarily related to NODWIN
Future Growth Drivers:
- Fusebox: Scale-up of Big Brother game and launch of Traitors game
- Curve Games: Sovereign Tower releasing this week, Dragon Shelter in September, additional unannounced titles
- Sportskeeda: Diversifying traffic sources, building tool side of Pro Football Network business, cost optimization