Shares of late investor Rakesh Jhunjhunwala-backed online gaming company Nazara Technologies gained nearly 3 per cent today after the firm announced the acquisition of leading US children’s interactive entertainment company WildWorks. Rakesh Jhunjhunwala owned 10.03 percent or 65.88 lakh shares at the end of June quarter. Nazara Technologies stock rose 2.64 percent to a high of Rs 647.35 against the previous close of Rs 630.70 on BSE. The gaming company’s stock opened higher at Rs 637.50 on BSE.
The stock has risen after two days of consecutive fall. The stock has lost 29.1 per cent in a year and fallen 43.85 per cent in 2022.
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A total of 0.18 lakh shares of Nazara Technologies changed hands amounting to a turnover of Rs 1.18 crore. The market cap of the company rose to Rs 4,214.78 crore on BSE.
The stock hit a 52-week high of Rs 1,677.20 on October 11, 2021 and 52-week low of Rs 484 on June 22, 2022.
Nazara will acquire 100 per cent stake in WildWorks and its IP from existing shareholders in an all-cash transaction. Revenues of WildWorks stood at US$13.8 million in CY21 and US$5.8 million in H1CY22, and EBITDA were US$3.1 million in CY21 and US$1.6 million in H1CY22.WildWorks is an interactive entertainment company that creates immersive and substantive games for kids. Founded in 2003, WildWorks is an established game studios focused on the children’s market for ages 8-12 and is the number 1 Grossing Apps in its category.
“With its strong brand presence and talented Utah-based development team, WildWorks enables us to solidify our leadership position in the gamified learning space for kids,” said Nitish Mittersain, Founder and MD of Nazara Technologies.
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In terms of financials, consolidated net profit in the June quarter rose to Rs 16.5 crore against Rs 13.5 crore net profit in the corresponding quarter of the previous fiscal.
On a sequential basis, net profit zoomed 237 per cent from Rs 4.9 crore in the March 2022 quarter. Revenue from operations rose 70 per cent to Rs 223.1 crore in Q1 against Rs 1,31.2 crore in the corresponding quarter of the last fiscal.
On a sequential basis, revenue rose 27 per cent from Rs 175.1 crore in the March 2022 quarter. Earnings before interest, taxes, depreciation, and amortization (EBITDA) zoomed 102 per cent on a sequential basis to Rs 30.1 crore in Q1 against Rs 14.9 crore in the March 2022 quarter.
Nazara Technologies is an India-based gaming and sports media platform known for its games on World Cricket Championship, Chhota Bheem and Motu Patlu series.
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