Nazara Technologies Limited (NAZARA) Earnings Call Transcript & Summary

Ladies and gentlemen, good morning, and welcome to the Nazara Technologies Q2 FY '26 Earnings Conference Call hosted by Spark Institutional Equities Private Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Anand Srinivasan from Spark Institutional Equities Private Limited. Thank you, and over to you, sir.

Thanks, Opnali. On behalf of Avendus Spark, I welcome all of you to the Q2 FY '26 Earnings Call of Natara Technologies Limited. We have with us the management team represented by Mr. Nitish Mittersain, CEO and JMD at Nazara Technologies; Mr. Rohit Sharma, Executive Director, Natara Technologies; Mr. Rakesh Shah, CFO; Mr. Anupriya Sinha Das, Head of Corporate Development at Nazara Technologies; Mr. Shreyes Menon, Head of Offline Gaming at Nazara Technologies; Mr. Terry Lee, CEO of Fusebox Games; Mr. Jeff Amis, Co-Founder and CEO at Wildworks; Mr. Akshat Rathee, Founder, Nodwin Gaming; Mr. Ajay Pratap Singh, COO, Absolute Sports Private Limited; Mr. Senthil Govindan, CEO, Datawrkz; Mr. Stuart Disney, CEO, Curve Games. I would now like to hand over the call to Mr. Nitish Mittersain for opening comments. Over to you.

Yes. Thank you. Good morning, everyone, and thank you for joining us this morning. To start off with on our quarterly performance, Nazara delivered INR -- sorry, for our H1. So Nazara delivered INR 1,025.2 crores in revenue in H1 FY '26, up 80.2% year-on-year and INR 109.4 crores EBITDA, up 118.5% year-on-year. Our core gaming EBITDA came in at 23.2%. In Q2 FY '26 revenue was INR 526.5 crores, up 65.1% and EBITDA was INR 62 crores, up 146.4% year-on-year. Our PAT was negative INR 33.9 crores in Q2 FY '26, predominantly due to the real money gaming ban and our impairment of Moonshine Technologies. And PAT for H1 FY '26 was INR 17.4 crores. Our operating cash flow for the first half of this year was INR 71.5 crores on a pretax basis, up 170.8% year-on-year, demonstrating a high cash conversion to our EBITDA and reported PAT. Growth was driven by scaling up our LiveOps, improved retention and multi-platform monetization across mobile, PC, console and offline. At this point of time, over 90% of our gaming revenue comes from international markets with a strong focus on the U.S. and U.K. markets. Mobile gaming remained our primary engine of growth, led by gaming IPs such as Love Island, Big Brother, Kiddopia, Animal Jam, WCC, et cetera. Our PC console publishing business performed quite well through successful IPs such as Human Fall Flat and Wobbly Life. Offline gaming, SMAASH and Funky Monkeys has been growing well and is expanding pretty rapidly now for us. Our centers of excellence in user acquisition, analytics, AI and growth are demonstrating good success for us with improved cost of customer acquisition, expanding our lifetime value of each customer and more importantly, creating synergies and operating leverage across the different studios that we operate. The shared capabilities are compounding portfolio performance at scale, and we will see increasingly improved metrics in the quarters to come due to these initiatives. During the quarter, as you all would know, new regulations in India's online skill-based real money gaming space prompted Nazara to record an impairment on its investment in Moonshine Technologies, which operated PokerBaazi based on fair valuation as per accounting standards. We've always taken a conservative approach to our accounting presentation, and that's why we've taken a significant impairment in this quarter itself. Also, Nazara stake in Nodwin Gaming came below 50%, which resulted in the de-subsidiarization of the business. Consequently, while earlier we were carrying this at investment value in our books, we have now taken it at fair value, leading to a onetime -- meaningful onetime gain. This quarter's performance, despite the headwinds faced, demonstrates Nazara's resilience and validates our strategy of a diversified portfolio, providing stability to the overall platform and allowing us to take surprises in our stride while continuing to scale. With that, I will now hand over to Anupriya to discuss segmental performance. Over to you, Anupriya.

Thank you, Nitish. Good morning, everyone. I'll start with the performance of our core gaming segment, which consists of mobile gaming, PC console publishing as well as the offline gaming segment. In H1 FY '26 on a year-on-year basis, our core gaming segment grew by 159% in revenue terms and 253% in EBITDA terms. The EBITDA margin for this business was 23.2%. In Q2, on a year-on-year basis, this segment grew by 159% in revenues and 213% in EBITDA with an EBITDA margin of 22.1%. Starting with Mobile Gaming segment. The momentum remains strong with broad-based growth across Love Island, Animal Jam and WCC. We also added CATS+KOT as the new IPs in this segment. In Q2 FY '26, mobile revenue grew 81% and EBITDA grew 95% year-on-year, reflecting improved UA efficiency, live ops cadence and content refreshes. H1 trends were similarly robust with revenue up 83% and EBITDA up 109% year-on-year. Operationally, we executed our systematic growth framework, sustaining Love Island longevity with Season 13 featuring on App Store, scaling Kiddopia investments at disciplined economics and delivering revenue uplift in Animal Jam through new content. We also advanced IP expansion initiatives, including Animal Jam's upcoming Roblox launch and Big Boss launch for the Indian market. Moving to PC and console publishing. We continue to demonstrate high-margin IP monetization and expanding platform reach. Curve Games benefited from evergreen catalog strength in new platform initiatives with Human Fall Flat delivering 1.25 million units in September 2025, up 25% year-on-year, while Wobbly Life surpassed 2 million lifetime units and is being now developed for Switch 2. Turning to offline gaming consisting of SMAASH and Funky Monkeys. The portfolio delivered INR 12 crores of EBITDA in H1 FY '26 at a 27.5% margin. Within the quarter, SMAASH and Funky Monkeys together drove revenue and EBITDA with a clear discipline-led playbook. We launched 3 new Funky Monkeys centers in Q2 FY '26 and continue to progress the SMAASH 2.0 revamp with relaunch targeted for FY '27. Offline remains both cash accretive today and a valuable audience funnel into our digital IPs. Moving on to the other segments. AdTech delivered strong growth and robust profitability with Q2 FY '26 performance such as revenue increased by 501% and EBITDA grew by 289% year-on-year. For H1, the AdTech business contributed to INR 10 crores of EBITDA. The combination supports client synergies, broader cross-market solutions and a shift towards higher-margin product lines. Nodwin's core business grew profitably -- showed profitable growth in Q2 FY '26, even as revenue and EBITDA for its core business grew 31% and 32%, respectively, in revenue and EBITDA terms. The business sharpened focus on youth content and influencer IPs and is scaling esports across India, Saudi Arabia and other emerging markets. Nodwin appointed a global gaming veteran as a Nonexecutive Director. The business also refined playbook and stronger synergies are now improving outcomes. Backed by equity inclusion, divestments and expanding profits, Nodwin is preparing on an additional raise to accelerate its global strategy. In Absolute Sports, Sportskeeda delivered INR 7.2 crores of EBITDA in H1 FY '26, even as it navigated lower organic traffic following Google's update. Management has proactively executed cost measures, driving a 13% year-on-year cost reduction in Q2 and planning a 40% year-on-year reduction in Q3. Other properties performed well with Pro Football Network revenue increasing 83% year-on-year in H1 with modest cost reduction. Similarly, PrimeTimer grew 178% year-on-year post acquisition. And last year's acquisitions such as Soap Central and Deltia's Gaming grew 195% year-on-year in Q2. With this, I conclude my remarks, and we'll now open the call for Q&A.

[Operator Instructions] The first question is from the line of Jinesh Joshi from PL Capital.

Sir, we have taken a provision for impairment in free for about INR 206 crores. So what led to this impairment? And also, if I remember right, we had invested about INR 271 crores over here. Please correct me if my number is incorrect. So apparently on that base, the impairment appears to be quite substantial in nature. So if you can provide some color on that. While in the PPT, we have stated that for you facing some headwinds in Europe given high layoffs and the stagnating market in Europe. But I think we invested in this company maybe about a year back or perhaps 1.5 years back and suddenly, we are having an impairment. So just some color on that.

This is Akshat. I'm the founder of Nodwin. You've made -- can you hear me? Just doing one sound check?

Yes.

Okay. Excellent. So some minor factual corrections, which is that we had invested into streaks as an associate and then we ramped up our investments into this. This is about a 2-year-old assets approximately that we have that's getting there. When the investment was initially made into this, Europe was doing very well. Esports was doing really well. And the gaming market was far more robust than it is right now. However, with whatever has been happening on geopolitical levels, Europe as such has gone through a very, very bad time, not just a normal bad time, it has been a very, very bad time. So layoffs currently in that sector are in the hundreds of thousands of people across the world. And Europe per se has shut down most companies in that space. The additional one -- so obviously, marketing dries up, where we are hiring people that headwind to play, plus AI is also going in -- playing in that space a lot. So budgets, people, et cetera, are all being cut. Now the second part is Europe is also going through an aging crisis which has also led to ability to move people out of the business is extremely expensive. And the last one, which is very important is esports per se in the Western markets has died. It's only becoming an emerging market in the Saudi Arabia phenomenon. And in these markets, it's doing phenomenally well. So -- and as esports dies also in those markets, we are hit with triple headwinds. And the final question on this was how much have we invested? Our total investment in this asset was around EUR 42 million, closer to INR 420 crores, INR 430 crores. As of right now, an associate-based accounting has the impairment that you're going and seeing, which is Nazara share. The rest of the total impairment for us is there. We are doing proactive work where we believe the cash that the company requires to go ahead and keep surviving is not going to be sustainable for us to go ahead and keep on funding this asset in the future.

Yes. Jinesh, this is Nitish. I just wanted to add a couple of points here. I think it's important to understand that a lot of the investment was through equity swap into a subsidiary of Nodwin. So the cash amount was much lower than the total value that is being impaired. I think the secondly, I think our view is that if we make a mistake, we should recognize this quickly and move ahead rather than keeping on putting more cash into it. I think Nodwin is also aligned with the same. If you look at Nodwin numbers, actually, the overall business is doing quite well this year, but the losses are predominantly coming only from Freaks 4U. So I think we both agreed to take this proactive action in terms of the health of the business as well as in terms of conservative accounting. I hope that answers your question.

The line for him has been disconnected. We will take the next participant. The next question is from the line of Manan Poladia from MKP Securities.

So my first question is, again, on Freaks 4U, if you could disclose the cash value and the share swap value, even if it was in a subsidiary as Nodwin, number one. I think secondly, on the PokerBaazi impairment that we've taken, I know we've been fairly conservative and taken most of it upfront. I'm just wondering if -- how much of that cash was already used? There must still be some cash on the company's balance sheet. I understand there are contingent liabilities as well from the GST department. But if you could explain what the strategy there is going forward since we are still major equity shareholders?

Sure. Let me answer the PokerBaazi question first, and then Akshat can give the clarification on the fix for you investment breakup. So PokerBaazi, I think we've basically taken an approach to write off everything except for our provision for impairment, except for the cash in the company broadly. So I think the delta that you see is cash in the company, and they have over INR 100 crores of cash at this point of time. The company is obviously evaluating multiple options. They have an extremely strong poker platform, which has been demonstrated at scale in India. And therefore, it is quite sought after by global players. And they are exploring a variety of global businesses and also potentially how they can leverage their India user base going forward for different offerings. So I think it's all work in progress. And hopefully, by next quarter, we will have more concrete updates to give on that. From a Nazara perspective, like I said earlier, we usually like to keep our books very clean and take a conservative approach, which is why we went ahead and took this impairment upfront in this quarter itself. On Freaks 4U for you, Akshat, can you give the breakup?

Yes. It was a 4 tranche investment into this. We had initially acquired -- invested $9 million into Freaks in January of 2024 for a 13.5% equity. After that, we had gone and increased our shares to 57% by infusing and stock swapping $25 million plus with the Nodwin Singapore asset to the Freaks 4U shareholders. We additionally have invested around another $6.5 million, $7 million into them as primary capital over time for a total of about $15 million in cash and $25 million in stock. And the balance is stock that is still due, but we will not be going and exercising that asset. So total value in everything put together is around $40 million.

Right. Understood. Just a follow-up on that, if I can. So my understanding, at least up till last year was that we are exploring this global esports opportunity where I think you guys were talking about Turkey and outsourcing a lot of the services part of that to India. Is that still a part of the thesis with what you just told? Or is there a change?

Look, I think it's probably a good question, which allows me to go and give a small commentary around this, and it might help everyone else who is potentially going to ask that question. Nodwin remains extremely [indiscernible] on the global esports strategy, but in specific sectors of the world. Emerging markets, which is basically the global South, so Latin America, India, Pakistan, Bangladesh, Nepal, and Nigeria, Kenya, South Africa and on the East side, we have Philippines, Vietnam, Indonesia and then the global Russian South, Uzbekistan, Kazakhstan. These are the places where the young people are in the world, right? As a youth media company in the world, we need to be very focused towards where we want to be growing for because this is where young people are. This is -- and everywhere in the north, people are just getting older. Now our Freaks asset was the ability to go ahead and get a beachhead in a developed market, which would go ahead and potentially bring us a lot of revenue that we could then go ahead and funnel into the rest of the locations that we are. That theory of going and investing into developed markets to go ahead and get funneling for the developing markets did not work out, specifically from the European point of view. Our theory on this still stands. And Freaks was actually an asset we have acquired, if you -- it's part of the presentation uploaded we acquired Freaks -- this is one of the 7 previous assets that we had acquired. There's -- everything after that, which we've been doing has been working out much better. So even our M&A strategy has worked out much better. And thank God, we at least had -- we didn't put more cash behind it. I think [indiscernible] council is great where we've been able to go ahead and just impair a lot of the equity value that we swap with, but an equity is not cheap for us because we keep growing. So that's our idea. We remain robust, and we remain strong to go ahead and invest in emerging markets, and we'll continue to do so.

The next question is from the line of Rahul Jain from Dolat Capital.

Firstly, if you could elaborate on the new brand that we are creating, new brand and new brand title, where we are saying that this is around imagination creation and expansion. So specifically on the creation side of it in terms of what kind of investment we would put in and what kind of monetization we are looking into it and any other plan on the expansion side of it? So I think some of the color around this new founding brand.

Rahul, I'll take that. This is Nitish. So first, let me give you the whole thinking behind the new brand identity, our new logo and our new brand positioning as Enter. Magic. I think what we realize is that in today's -- our players or generally everyone's life is stressful and one thing that can really bring some magic or some relief in the lives is interactive entertainment experiences through gaming, through immersive worlds, which is why you have so many gamers, right? Today, everyone in India's 500 million-plus people playing on their mobile phones exactly for that. As technology is progressing and at a very rapid rate, we believe that these interactive, immersive experiences will really scale up and really become much deeper. And I think that's the direction that Nazara is always looking to go, leveraging artificial intelligence, leveraging virtual reality, et cetera. A lot of our focus, as you know, has been on IP. And the beauty of owning IP is that you can easily transcend the IP into these new platforms and technologies. So let's take, for example, Animal Jam, which is the IP that we own. It's -- we are, for example, currently working on a very exciting project that takes Animal Jam onto the Roblox platform. But tomorrow, we would probably work on an immersive world around Animal Jam in a metaverse. So I think providing these interactive magical experiences to our consumer base, to our players is a direction we are going in, and we believe that will be very powerful. So that's the perspective. In terms of creation, we will obviously invest more in these technologies, in these developments that we are doing. But we will also remain very pragmatic. We don't want to be too early in anything and burn a lot of capital. So you can expect us to continue to remain pragmatic as we have been, but also with a leaning towards investing in these emerging technologies.

Right, right. Just one more question from my side. Just to understand the Freaks 4U part of it from a P&L standpoint of view, given your current positioning about that business, is it that some more losses would continue in this business as it taken down at Nodwin level? Or will it be moderating now since we have written it off in our case?

Yes. Akshat, can you take that?

Of course. So look, our idea on this is we have written off the entire value of the core business. There is a small provision that is kept for us in case any follow-on losses might come. But we are fundamentally not going to continue funding this business. So the management of the business has been told very, very clearly if they can go ahead and survive internally with internal accruals, that's great. Otherwise, we will not be supporting them, which would mean that either they will go ahead and file for insolvency or they will go ahead and have the same cost. But we are no longer -- as a large shareholder of theirs that go to 57%, 60%, 62%, we are no longer willing to go ahead and support them on an ongoing concern basis.

Yes, Akshat, so one -- yes, sorry, please go ahead.

So which would mean -- and that's why we are proactively impairing our entire position on it.

So I was just trying to understand from an accounting point of view, is the current quarter losses is the run rate losses that will sustain for that business in the second half of the year? Or I understand the cash part of it, but from accounting and integration point of view, we will still be carrying the losses in the future?

Rakesh, would you like to take it?

I will take that answer. So I think, Rahul, the company, given its cash position, will not be incurring much losses going forward. They will either figure out a way to -- and the company has already been reducing costs at a significant rate over the last few quarters. So I don't estimate similar losses to continue or they will be significantly reduced even if they are...

Understood. Understood. That's pretty helpful. And similar way on PokerBaazi, we are not going to put any cash and they already have some bit of cash. I heard you saying more clarity would emerge. But meanwhile, what could be the burn rate on an exit basis on a monthly or quarterly basis?

Look, we've had -- I think, approximately INR 17 crores burn in this Q2. I don't know they've been also working on optimizing. But over there, it's a delicate balance because like I was saying, the technology platform is in great demand and they continue to invest in the technology team. Some of that revenue that's going to start kicking in may lag by another quarter or so. So there may be continued losses into Q3, and we would probably have to take our share of that loss as an associate company. But I think over the next quarter, costs will be optimized further, revenues will start kicking in. So I think it's maybe 1 or 2 quarters more.

So you're saying revenue can potentially come even in Q3?

Yes. It should because, like I said, they will be licensing some of their existing platforms to external parties and working with them.

Right. And if it is possible to share the fixed cost of the business?

I don't have it handy, but we'll try and put it out separately.

The next question is from the line of Sucrit Patil from Eyesight Fintrade Pvt Ltd.

I have 2 questions. Looking beyond the quarter numbers, what is the bigger picture for the company? With gaming rules changing and exports becoming the mainstream, how are you putting the company to build a lasting edge beyond just order wins or new platform launches? Is there something deeper that you are planning like global partnerships, IP creation or engagement forms that will make the competitors hard to copy.

Sure. So I think our playbook on creating centers of excellence on user acquisition, on artificial intelligence, on data analytics, on growth. These are -- and we've hired some very strong professionals from across the world to lead these centers of excellence that we have created. I believe that this will become a significant differentiator and competitive edge for us because what these will do is they will uplift the capabilities in each of these segments for all the studios that we are operating. And therefore, as a collective, I think we should be able to achieve a lot more and create distance between us and the competition. We are already starting to see early signs. So for example, our center of excellence on user acquisition. We're using some of the latest technologies to deliver better results. We're starting to see those green shoots in games like IPs like Kiddopia, which we will show you in Q3 numbers. So I think we are quite excited about that aspect of bringing together these synergies. And on the top of this, our whole focus is on buying the gaming IPs or creating gaming IPs because we believe that, especially in the world of AI, if you own well-established IP, that becomes a big differentiator for you, and you can actually leverage AI to develop faster, service your consumer base faster. So I think synergies through our centers of excellence plus a focus on buying and building profitable gaming IP from a global perspective is really the core business focus at this point of time.

My second question is on margins and cost planning. When the costs rise, whether it's marketing, compliance or IT, how to make sure the margins stay stable without slowing down the growth? Is there any system that you have put into place or you will be putting into place like smarter sourcing or digital efficiencies that will help you keep the profit stable even when things are getting out of control? I would love to hear your view on this.

Yes. I think our mindset has always been to deliver profitable growth. And therefore, we take -- we don't believe in a growth at all cost strategy. And I think that's quite baked into our DNA. At this point of time, we are definitely seeing an increase in the group costs or at corporate level costs because of the centers of excellence that we are investing into quite aggressively and building out the team. At the same time, I think some of these initiatives have a fairly quick payback period, which means there won't be a long gestation. Lastly, of course, we are leveraging all new technologies to make sure that our costs remain competitive. And sorry to repeat again a buzzword, but I think AI will definitely help us on that front. We are going to, for example, launch WCC 4, which is our next version of our cricket game, which is completely coded in AI using Claude. So I think some of these emerging technologies will also help us either maintain -- optimize our costs, but more importantly, be able to generate a lot more productivity from the existing teams that we have.

[Operator Instructions] The next question is from the line of Jinesh Joshi from PL Capital.

Sir, I just wanted to know at what valuation did Nodwin raise the money and who are the investors because apparently, we have recognized the gain on revaluation. But for Freaks, which is a subsidiary of Nodwin, there is an impairment. So if you can just explain that part.

Yes. So Nodwin has done two fundraises. One was last year with Nazara, Krafton and Sony. And then a top-up earlier this year, a couple of months back -- at broadly the similar valuation. Akshat, you can share more details. But yes, that is it. And the Freaks, we have already impaired. So that would obviously the extent of that loss would get deducted from the overall carrying value in our books as well at a consol level. Akshat, do you want to throw some more light on that?

Yes. So there is two values that we go and do. So Nodwin has become, again, a slightly longer answer, but I hope it will set context. The cash that Nodwin has raised is from our existing and predominantly all our existing investors, including me, the founder, who has gone and invested more cash into the company as Nodwin goes and builds for the future. And we have everyone who's still believing in it. The other part is every company that we are acquiring, Nodwin acquires now has built the discipline of its paper being very valuable to external investors, both financial and founders whose stock swap with us their entire companies from the -- to the tune of 80%, 90% or even 100%. And that's the belief of Nodwin providing liquidity to them and growth to them and the group's synergies to them. As far as our investment, our raise which was at -- the 1.5-year-old raise with Sony was at a pre-money valuation of $349 million and then everything else has been on top of that. The total amount of money that we've raised in the last 1.5 years at that pre-money valuation sits at about $30 million.

Sorry, I'm harping on this issue again. This is the last question from my side. Just wanted to check from whatever you have mentioned, apparently, it appears that the post-money valuation has not changed that much. But there has been a revaluation gain in the books of Nazara to the extent of INR 1,098 crores. So I just wanted to understand that bit. And that is why I was asking about.

Sure. So I will answer that. So basically, from a Nazara perspective, since we had originally acquired a 51% stake in Nodwin and made subsequent investments, the carrying value in our books at a consolidated level was at the investment value. And it had not never been marked up on the different fundraises done by Norwind since the time of our original investment. And now post desubsidiarization as per Ind AS accounting standards, as an associate, we had to value it at a fair value, which we have taken as the last round of funding value, which was done 2, 3 months back.

The next question is from the line of Sachin Dixit from JM Financial.

I had a couple of questions. The first one was on basically two of our key properties, Kiddopia and Sportskeda, right? Both have been struggling or seeing headwinds in the recent times, right? How do you think their recovery will happen if you see that there will be a recovery at some point? And when will that point come, if you can talk about that, especially from basically Kiddopia side where the average paying users numbers have been declining?

Sure. So let me take the Kiddopia answer first. Actually, as you know, Kiddopia has struggled for quite some time post IDFA, maybe it's been a couple of years now. But we do see light at the end of the tunnel. We really beefed up the team at Kiddopia, brought in a new business head, Manish. And I think the team, along with our centers of excellence, in the last few months has done some very good work, and we are finally starting to see positive growth in subscriber numbers. We believe at this point of time, Q4 should be able to deliver positive growth in subscriber numbers alongside including, I would say, increasing ARPUs, reducing churn, et cetera. So I think work all around is starting to show results. And hopefully, Q4, we will have positive news for you. In terms of Sportskeeda, obviously, it has taken a large Google algorithm hit. We were hoping that it would have recovered by now because usually, in our past experiences with ourselves as well as other partners, it takes a few months to come back, but that hasn't happened yet. We do have Ajay, the CEO of SK. He can share more light on this.

Thanks, Nitish. As Nitish mentioned, we were hit by a Google Core update, which negatively impacted our organic traffic in March this year. We've seen this happen across publishers with one of our companies also, which is Pro Football Network, which took around 3 quarters to come back. We should see a Google Core update come again from -- again in the month of, let's say, November or December. That's how the trend continues. So we are hopeful that we will bounce back soon. And once we do that, our numbers will go up again.

So basically, we should expect something happen in Q4, if that's the right way to think?

Yes, we are hopeful. So different publishers take different times to bounce back. It also depends on what Google is releasing in the Google Core update. PFN took around 3 quarters. It has been 2 quarters for us now. So another couple of updates, we should be good.

Just to add to that, I think while the large impact is on the parent side, which is Sportskeda, the other sites like Pro Football Network, et cetera, especially continue to do quite well. Ajay, do you want to share something?

Yes, yes. Just to add, if you look at overall ASPL numbers, Sportskeda is one of our flagship property, which contributes about 85% of overall revenue and 90% of EBITDA and hence, the impact is more. But if you talk about the other sites, be it ITR, TJR, Prime Timer, Soap Central, Deltia's, or Pro Football Network for that matter, right? I mean, in this HY, they grew 83% Y-o-Y in terms of revenues. So all of them have done really, really well. It's just Sportskeeda, which has been negatively impacted. And once the Google Core update is fixed for us, we should also see them bounce back.

Sure. My second question is, again, a bit more high level, right? So across businesses, you see quite a lot of volatility in how the growth rates tend to happen for you, right? So if you can talk about, obviously, there are certain businesses which have done quite well this quarter in terms of how they've grown. If you can talk about the sustainability of some of these growth rates, shed some light on how we should think of from a forecasting perspective, what is the right way to think of growth rate across these segments, that will be helpful.

Sure. I think if you focus on our core gaming business, what we find is that with improved efficiencies across user acquisition and also, I think a lot more detailed data analytics and CRM work that we are doing, we should be able to deliver more predictive growth. We are targeting to grow our core gaming business at 20%, 25% year-on-year. We're also aiming for an EBITDA margin in the 20%, 25% range for core gaming business. I think that is what should be achievable, and that's what we are going to kind of focus on driving going forward.

Sure. Just one housekeeping question, if I may. So on Smaaash's side, right, so while last quarter, you reported revenue only for the acquired period revenue and EBITDA, but it looks like while EBITDA has tripled this quarter, but -- sorry, revenue has tripled this quarter, but EBITDA remains flat. Is there something incorrect that I'm looking at?

I will have to double click on that. For us, before I jump into that, let me just give a perspective of what is happening in the offline gaming side. We have two offline properties right now, Funky Monkeys and Smaaash. Funky Monkeys right now is on quite an active growth path because the core format is working quite well. And we are expanding now to multiple stores in the cities. We're launching 1 to 2 stores every month, which is going to compound. So I think we are quite excited about that and there's huge scalability. We believe the current 14 centers or 15 centers can get to 100 centers in the next couple of years. So that's what we are going after. In terms of Smaaash, what we are really doing is after procuring it from NCLT, we are doing two things. One, of course, we are cleaning up and getting proper grip on the existing business, acquiring any business from NCLT requires some optimization and we've also made new hires over there. The second thing is Smaaash 2.0, which is completely reimagining Smaaash with what Nazara can really bring to the table. And that is what we are going to drive aggressively once we do our first or second POC launch. Coming back to your housekeeping question. Q1, we had INR 8 crores of revenue and we reported INR 3 crores of EBITDA. Q2, we had INR 24 crores of revenue, and we've reported INR 3.5 crores of EBITDA. That's because Smaaash was consolidated from June. In terms of your question on why the EBITDA is lower, to be honest, I will have to double click on that. So we'll put this information out later.

The next question is from the line of Abhisek Banerjee from ICICI Securities.

Just a couple of questions from my side. Firstly, I saw the game that you put out on Big Boss, seemed like a good proposition. So any thought process on what can be a potential revenue from this game going forward? And how is the early signs of traction?

Yes, it's very early days. We've just launched it, and we've kind of soft launched it. We are fine-tuning the initial KPIs before we start user acquisition, et cetera. But the bigger picture here is, and I will ask Terry, who is the CEO of Fusebox to jump in. I think the bigger picture here is that through the Fusebox acquisition that we did, we found that the engine that they have made works really well with IP on these narrative-based story games and Love Island has already proved that at scale. So what we've really done over the last year working with the team is to acquire other IPs that we think can do very well and launch games around that. So we acquired a Big Brother global license. The game has already been launched. And the second edition or second episode of that has just been launched a couple of weeks back. Then we got Big Boss in India because we also want to make sure that we are translating all our studios also from an India context. And I think Big Boss has been a good launch for that. And we acquired Traitors, which is again a global license. So the studio has really moved from a one-game studio to a four-game studio in 1 year. And I think that should drive substantial growth overall in the -- into FY '27. Big Boss, a little early to comment at this point of time. But given India's large user base, I think with the right IPs and the right quality of games and content, we should do very well. Terry, do you want to add to that?

Yes. Thanks, Nitish. Yes, as Nitish mentioned, it's still very early. We only launched Big Boss last week, Thursday last week. So we're still in kind of the early launch and only starting to engage with user acquisition now. However, yes, we're very excited about such a huge IP. And in general, from our experience, these games take several seasons to compound players, and it makes UA cheaper. And so we can keep growing at scale. But yes, we're very excited about the addressable market for Big Boss, and it's just another IP along the route, and we will continue to kind of grow in this way.

Understood. So Terry, just one follow-up on that. So I played the game a little bit. It seemed like it was tuned for the India context. So trying to understand whether -- I mean, was it developed in India? Or was it developed outside?

I'm sorry it was developed both in the U.K. and both in India. So we partnered with a trusted partner of Nazara. And so yes, we were working with the U.K. team and with an Indian partner to make sure that it was culturally relevant. And actually, we have some Indian employees as well. So yes, it's a mixture of both.

Great. And Nitish, just back to you for one last question, which is on Moonshine. So we are seeing that in the RMG space, some of the outside players have now pivoted into other business offerings. So anything like that on the horizon for Moonshine or...

No, no, of course, definitely. The team there is very hungry to do a lot, and they have -- like I was saying earlier, a fantastic platform. I think it's -- at a global stage, their platforms can compete very well. So I think there are 2 broad areas of thinking. One is they have a large, very high-paying consumer base in India, which is quite loyal to their brand and how can they leverage that in making other offerings that would be relevant to that user base. That's one area. The second is, of course, taking their platform global, both from a direct-to-consumer perspective. Second is working with existing RMG platforms, real money gaming platforms globally and kind of being a B2B offering for that. So I think multiple areas being worked upon by the team. We'll come back with a lot more specifics on that in Q3.

The next question is from the line of Kunal Bajaj from Choice Institutional Equities.

Congratulations on a good set of results. So firstly, my question was on Nodwin. So we have seen that Nodwin has been continuously raising funds. So what is the focus area for growth over here? And secondly, on the strategies and status on the Nazara Publishing business? So if you can briefly give a highlight on that?

Yes. Akshat, do you want to take the first one?

Of course. Look, Nodwin has been raising money for some time now, and we continue to raise and we have believers in us. Over the last couple of years, this is our last quarter that we'll be part of the Nazara family till our August numbers, and we'd love this journey. But one of the big things is that Nodwin is growing up, right? We are a company that is now considered one of the best in the world in youth media. In emerging markets, we are literally #1 or #2 in the world of what we are building. And our idea is to go keep on building that. And my stated vision is Nodwin wants to be a $1 billion revenue company in the next 5 to 7 years. And Nodwin wants to go ahead and be there. We want to be wherever the youth are. We want to have content. We have four legs, which is Live, Content, eSports and Influencers. And these are the ones that kind of all come together. And whether it's Comic Con, that is a property that we have in India, and we are now taking to multiple parts of the world or we are having global IPs that come to India or we have our eSports tournaments happening in Budapest in December, of it's the World Championship of Counter Strike or we have the BGMS activity happening in India or Playground, which is the most watched youth show in the country of India that's being exported to different parts of the world with Banijay or Endemol. Those are all strong verticals for us. And we will continue to go ahead and invest in all of these as we go forward. And all the markets that we stated are our ramp. And everyone across the world now recognizes that. And that's why they invest into us. We have founders who come into our things and there's more ships that join our flotilla to keep on becoming better because we have great founders who come. And sometimes those founders will fail. We'll never have a 100% success rate. We are blessed if we have a 50% success rate. But those founders who will try will go ahead and build value for us. And sometimes when those ventures fail, the idea will fail, but the founders never fail. And those founders will always try to go ahead and start new businesses and new ventures for us. And we've already started seeing that with some of our founders making new ventures that are now creating extreme value for us. Nodwin will remain an IP company jostling cash flows will be done through agency and white label work and long-term value will be through IP monetization and global growth in emerging markets.

Thanks, Akshat. I will answer the second question around Nazara Publishing briefly. So our plan really is to build a large direct-to-consumer network of users based on first-party data, based on cross-promotion, based on our ability to monetize better and a loyalty platform. And what we have just completed is a large Google project with Google on CDP that's going to allow us to have one Nazara ID across all the games that we publish, and this will enable all the features that I just spoke about and more. I think this will become quite a strong platform for us going forward. And initially, we are launching it with our existing games, whether it's World Cricket Championship, Big Boss, et cetera. Over the next couple of quarters, we will build out the network using that. Thereafter, our idea really is to work with some of the global players, help them publish the games in India and monetize better as well as work with local Indian developers. So basically, think of it becoming a very sizable consumer network. Today, India has 500 million gamers. Can we get 50 million, 100 million gamers on our network and service them better. I think that's really the larger vision that we are working on as far as Nazara Publishing is concerned.

Ladies and gentlemen, as there are no further questions, I would now like to hand the conference over to the management for closing comments.

Sure. I'd like to take this -- I have Stuart Dinsey, who's the CEO of Curve Games on the call, and he's woken up at 3:00 in the morning to join the call. So maybe he can just quickly introduce -- use this opportunity to introduce himself and speak for a couple of minutes on what Curve is up to. Stuart?

Thank you, Nitish. Good morning, everybody. It's nearly bright here, but not yet. We're very pleased to have joined the group. Curve has got a long history of profitability. We're well established in the console and PC markets. I think we're just coming up to 6 months since the acquisition. We've gone through a period of transition without it materially affecting the business. And we're looking -- we're continuing to work with Nitish and Rohit to leverage the Nazara ecosystem to further benefit Curve. And we're signing games and looking to grow the business going forward.

Thank you, Stuart. I will hand over the call to Rohit Sharma, who's our Executive Director, for closing remarks. Rohit, over to you.

Thank you, Nitish, and thanks, everybody, for joining the call and all the questions. As Nitish and most of our team members have mentioned that we have -- Nazara has been in the last couple of quarters, building very strong focus on building IPs, building synergies within all our studios. Our center of excellence has really worked well for us and will scale up and continue to scale up. So I think we are very excited about the way we are -- what we built and the way we are scaling up. So again thanks a lot, everybody. And once again, thanks for the nice, relevant questions, and thanks from our side.

Okay. Thank you, everyone, for the call. Have a good day.

Thank you very much, sir. On behalf of Spark Institutional Equities Private Limited, that concludes this conference. Thank you for joining us today, and you may now disconnect your lines.