In a recent earnings call for the financial year 2021, Indian gaming company Nazara Technologies has announced a revenue growth of 84% over the previous year. The big drivers behind the growth in Nazara Technologies’ revenue have been Gamified Early Learning, and esports. According to Nazara Technologies’ earnings call, Gamified Early Learning accounted for 39% of the company’s revenue, while esports accounted for 37%.
“As we operate in the high growth business segments of Gamified early learning, esports and Freemium, we will continue to prioritize growth over profit maximization, so that we can achieve and maintain market leadership in segments we operate in,” said Nazara Group CEO Manish Agarwal in a press release.
For context, Gamified Early Learnings is Nazara’s division that focuses on educational apps and content that focus on gamification techniques, aimed at a younger audience.
Nazara’s Real Money Gaming division—essentially the company’s gambling and fantasy sports apps—accounted for only 3% of the revenue. This is a massive reduction from last year, where the Real Money Gaming division pulled in 17% of the company’s revenue.
According to Medianama, Nazara is being cautious with its Real Money Gaming division. Fantasy sports apps certainly took a hit over the last year, since the whole concept revolves around live matches taking place, and the pandemic had a big part in not allowing that to happen. Nazara is also being careful about legislation that might hit real money gaming, as evidenced by a few Indian states having passed laws that prohibit real money gaming operations.
Agarwal also mentioned that esports will be a major focus for Nazara during an investor call, stating that the division’s revenue grew by 102% over the previous year.
It’s interesting to see esports being a large chunk of the revenue. We’ve haven’t seen any major tournaments take place in markets like India and with Krafton investing $22.4 million into Nazara-owned esports company Nodwin, industry chatter suggests that it may end up being a potential acquisition target.
Though with Krafton’s own Battlegrounds Mobile under intense scrutiny and Nodwin heavily involved in its operations, how the ongoing volatility in the esports could impact this remains to be seen.