Rakesh Jhunjhunwala’s Stock: Gaming Company Increases Equity Stake in Next Wave Multimedia
With the latest buying company's holding in the subsidiary increased from 71.88 per cent to 74.88 per cent on a fully diluted basis.
Nazara Technologies has announced the acquisition of 1,000 equity shares of Next Wave Multimedia Private Limited, a subsidiary, on December 16, 2024. These shares, valued at Rs 100 each, represent 3 per cent of Next Wave’s equity capital, increasing Nazara’s holding from 71.88 per cent to 74.88 per cent on a fully diluted basis.
This acquisition is part of an earlier Share Purchase Agreement (SPA) signed on May 24, 2024, under which Nazara is set to acquire 9,375 equity shares (28.12 per cent of Nextwave’s capital). The first tranche of payment, amounting to Rs 2,30,77,000, has been made in cash for the 1,000 shares, with the remaining Rs 19,32,69,875 to be settled as per the terms of the SPA. Next Wave remains a subsidiary of Nazara following this acquisition.
Q2 FY25 Performance
Nazara Technologies' consolidated net profit dropped 47.56 per cent to Rs 11.80 crore. Meanwhile, its revenue from operations increased 7.3 per cent, reaching Rs 318.94 crore in Q2 FY25 compared to Q2 FY24.
EBITDA declined by 9.8 per cent to Rs 25.2 crore in Q2 FY25, down from Rs 27.9 crore in the same quarter the previous year. The EBITDA margin also decreased to 7.9 per cent in Q2 FY25 from 9.4 per cent in Q2 FY24. The company’s profit before tax (PBT) saw a modest increase of 2.4 per cent year-on-year, reaching Rs 21.75 crore during the quarter.
Revenue from the company's various segments showed growth: the gaming business generated Rs 114.05 crore, marking a 9.34 per cent increase year-on-year, while the eSports business earned Rs 181.76 crore, reflecting a 5.66 per cent growth. The ad tech segment reported revenue of Rs 24.13 crore, which was up 7.1 per cent compared to the previous year.
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About the Company
Nazara Technologies is a leading player in India’s gaming and esports industry, owning well-known brands such as NODWIN Gaming, Sportskeeda, Kiddopia, Animal Jam, World Cricket Championship, and Datawrkz. The company has a presence in India and across emerging and developed global markets such as Africa and North America, offering a wide range of services in the interactive gaming, eSports, and gamified early learning ecosystems.
Disclaimer: The article is for informational purposes only and not investment advice.