Highlights
Nazara’s Significant Investment in Moonshine Technology
Nazara, a leading gaming company, made a substantial investment of Rs 982 crore in Moonshine Technology last September, buoyed by the impressive financial results of PokerBaazi’s parent company for the fiscal year 2024 (FY24).
Financial Performance of Moonshine Technology
Moonshine Technology, the operator of PokerBaazi, SportsBaazi, and CardBazzi, reported a remarkable 55% increase in operating revenue, reaching Rs 415 crore in FY24, compared to Rs 268 crore in FY23. This information is based on the consolidated financial statements obtained from the Registrar of Companies.
- The primary revenue stream for Moonshine came from platform fees and service transaction fees paid by users.
- Additionally, the company earned Rs 9 crore from interest on bank deposits, leading to a total income of Rs 424 crore in FY24, up from Rs 273 crore in FY23.
Revenue Breakdown
At the time of the acquisition, Moonshine revealed that:
- PokerBaazi accounted for over 85% of its net revenue.
- The fantasy sports platform, SportsBaazi, contributed 12% to the overall revenue.
Expenditure Overview
In line with industry trends, Moonshine allocated 60% of its total expenditure towards advertising. The advertising costs surged by 83%, rising to Rs 232 crore in FY24 from Rs 127 crore in FY23. Furthermore, employee benefits increased by 62%, totalling Rs 89 crore in FY24.
Other significant expenses included:
- Payment gateway, website/server, and customer verification costs, which collectively drove the overall expenditure up by 55.6% to Rs 389 crore in FY24 from Rs 250 crore in FY23.
Profit Growth
This strategic growth in scale, coupled with controlled expenditure, enabled Moonshine to boost its profits by 26.3%, reaching Rs 24 crore in FY24, compared to Rs 19 crore in FY23. The company’s Return on Capital Employed (ROCE) and EBITDA margin were reported at 20% and 10.1%, respectively, while its expense-to-earnings ratio stood at Rs 0.94.
By the end of FY24, Moonshine’s total current assets were valued at Rs 236 crore, with cash and bank balances of Rs 196 crore.
Nazara’s Ownership Stake
Out of the Rs 982 crore (approximately $118 million) investment, Nazara has already invested $100 million, acquiring a 47.7% stake in the company through both secondary and primary share purchases.
Performance of Competitors in the Real-Money Gaming Sector
In comparison, other companies in the real-money gaming sector reported the following for FY24:
- Gamesberry posted revenue of Rs 461 crore and profits of Rs 93 crore.
- MPL achieved a 22.2% increase in revenue from operations, amounting to Rs 1,068 crore.
- Dream11, Gameskraft, and A23 have yet to disclose their annual results for the previous fiscal year.