Nazara's $100M gaming bet sparks investor concerns despite revenue surge
Shares of Nazara Technologies Ltd slumped 4% on 18 March after the company announced plans to acquire a stake in Bluetile and Bestplay.
In its regulatory filing, the company said that its UK arm will first buy a 50% share in Bluetile and Bestplay for $100.3 million (Rs 918 crore). Of this, $59.7 million will be paid at the initial close, with the remaining $40.6 million to be resolved within six months.
The corporation also retains the option to acquire the remaining 50% ownership by 2028, at a valuation of 6.6 times trailing calendar year EBITDA. Nazara may pay up to 25% of the payment in equity, at his or her discretion.
In addition, the contract contains performance-linked earn-outs of up to $98.2 million (Rs 898 crore), subject to attaining revenue and EBITDA targets from 2027-2029. These payments are expected between 2028 and 2030.
On the financial front, Nazara reported 10% organic revenue growth and 25% profit after tax. In the first nine months of FY26, revenue jumped by 29.7% to Rs 1,431 crore, while EBITDA grew by 73% to Rs 177 crore. Margins increased to 12.4% from 9.3%.
The company's profit after tax fell to Rs 11.3 crore from Rs 48.9 crore the previous year, mostly due to a Rs 915 crore impairment in its Moon Technologies gaming stake.
At 2:21 pm, the shares of Nazara Technologies were trading 4.11% lower at Rs 244.75 on NSE.
