Highlights
Gameskraft’s Remarkable Financial Performance in FY24
The online gaming entity, Gameskraft, has showcased steady net profits of approximately Rs 1,000 crore over the past three fiscal years. Despite facing various legal hurdles, the Bengaluru-based firm recorded an impressive 30% year-on-year growth for the fiscal year ending March 2024.
Revenue Surge
According to its consolidated annual financial statements acquired from the Registrar of Companies, Gameskraft’s revenue from operations escalated to Rs 3,475 crore in FY24, up from Rs 2,673 crore in FY23.
Gaming Applications
Gameskraft is the operator of several popular gaming applications, including:
- Rummy Culture
- Playship
- Pocket 52
- RummyPrime
- Ludo Culture
- Rummy Time
The company’s revenue, specifically gross gaming revenue, is generated from a platform fee or commission charged as a percentage of the buy-in fees that users invest in games. This has remained the only revenue source in FY24.
Additional Revenue Streams
Furthermore, Gameskraft accrued Rs 46 crore from interest on fixed deposits and gains from current investments, bringing the overall revenue to Rs 3,521 crore in FY24, compared to Rs 2,732 crore in FY23.
Marketing and Advertising Expenses
In line with many gaming firms, Gameskraft collaborates with over a dozen brand ambassadors, including notable figures such as Harbhajan Singh, Mahesh Bhupathi, and Abhinav Bindra. The firm engaged in various social media and television campaigns, resulting in a significant rise in advertising costs by 113%, increasing to Rs 1,315 crore in FY24 from Rs 616 crore in FY23.
Employee Benefits and Operational Costs
Employee benefits also saw growth of 23.5%, amounting to Rs 463 crore in FY24, which includes Rs 12 crore as cash-settled ESOP costs. Legal, communication, domain services, web hosting, and other overheads contributed to an overall cost increase of 71.7%, rising to Rs 2,232 crore in FY24 from Rs 1,300 crore in FY23.
For a detailed cost breakdown, please see various sources.
Profit and Financial Ratios
The substantial increase in advertising costs outpaced Gameskraft’s revenue growth, leading to a 10.8% decline in profits, reducing from Rs 1,062 crore in FY23 to Rs 947 crore in FY24. The company’s ROCE (Return on Capital Employed) and EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) margin stood at 69.4% and 37.46% respectively, with an expense-to-earnings ratio of Rs 0.64. By the end of FY24, Gameskraft’s total current assets were recorded at Rs 1,680 crore, with a cash and bank balance of Rs 306 crore.
Market Comparison
In the real-money gaming sector, MPL reported a 22.2% increase in revenue from operations, reaching Rs 1,068 crore in FY24, alongside achieving positive cash flow for the year. Gameberry experienced a notable 46.9% revenue growth to Rs 461.7 crore, with profits surging by 150% to Rs 92.8 crore in the same time frame. Conversely, major competitors such as Dream11 and A23 have not yet disclosed their financial results for FY24.
