Nazara Technologies, a prominent player in the gaming industry, has established a new subsidiary, Nazara Technologies UK Ltd, in the United Kingdom to broaden its international presence. The move aligns with Nazara’s strategic objectives to strengthen its existing gaming operations in the UK.
In an official statement to the stock exchanges, Nazara announced the incorporation of Nazara UK, detailing that the subsidiary has been set up with an authorized share capital of GBP 100 (approximately INR 10,683), divided into 1 lakh shares at GBP 0.001 each.
Strategic Leadership Changes
In a parallel development, Nazara’s head of strategic initiatives, Dhaval Sheth, has stepped down from his role. He has now taken on the positions of Chief Executive Officer (CEO) and Chief Financial Officer (CFO) at Paper Boat Apps, a company known for developing the children’s digital learning app ‘Kiddopia.’ This transition follows Nazara’s recent acquisition of an additional 48.32% stake in Paper Boat Apps, bringing its total ownership to 100% for INR 300 crore.
Expanding Global Operations
The establishment of the UK-based subsidiary marks a significant step for Nazara in accessing new markets and expanding its product offerings. The company’s aggressive growth strategy includes not only geographic expansion but also strategic acquisitions. Last month, Nazara’s esports arm, NODWIN Gaming, acquired an additional 43.49% stake in the Germany-based marketing services firm Freaks 4U Gaming for INR 212.9 crore. This acquisition aims to enhance Nazara’s capabilities in the gaming and esports sectors.
Furthermore, Nazara’s subsidiary, Nextwave Multimedia, recently completed the acquisition of the casual freemium card game “UTP – Ultimate Teen Patti.” These strategic moves are part of Nazara’s broader plan to diversify its portfolio and strengthen its market position.
Financial Performance and Market Reaction
Despite these strategic expansions, Nazara reported a challenging financial quarter. The company’s consolidated net profit plunged 98% to INR 18 lakh in Q4 FY24, down from INR 9.4 crore in the same period last year. Additionally, operating revenue saw an 8% year-on-year decline, reaching INR 266.2 crore in the quarter ending March 2024.
However, investor sentiment remained positive, as evidenced by a 4.64% rise in Nazara’s share price, closing at INR 950.70 on the BSE.
