On Wednesday’s session, the share price of a diversified gaming and sports media platform jumped 7.7 percent to hit an intraday high at Rs. 729.65, after its subsidiary signed an asset purchase agreement to acquire all of the assets of a Leading US Entertainment firm.
With a market cap of Rs. 5,446.32 crore, at 01:18 p.m., the shares of Nazara Technologies Limited were trading in the green at Rs. 711.55, up by 5.06 percent.
According to June 5th regulatory filings with the stock exchanges, Absolute Sports, a Nazara Technologies subsidiary, signed an asset purchase agreement to acquire all of the assets of SoapCentral.com.
The transaction is for an all-cash consideration of $1.4 Million (~Rs. 11.6 crores) and is expected to be closed in the next 30 days, and Absolute Sports will use its cash reserves to fund the transaction.
With this acquisition, Absolute Sports announced the expansion in the entertainment segment and aims to become one of the leading sports and entertainment-focused publishers in the US market.
Absolute Sports is the subsidiary of Nazara Tech and the parent company of Sportskeeda.com and ProFootballNetwork.com.
The company, via its flagship brand Sportskeeda.com, is a global sports media platform that covers the world’s biggest sports and esports subjects and serves more than 100 million fans every month.
Launched in March 1995, Soap Central is one of the leading entertainment publishers in the US and provides the latest news, comprehensive daily recaps, sneak peeks and previews, character profiles, interviews, and more for US TV Shows.
In terms of financials, the revenue from operations stood at Rs. 266.21 crore in Q4 FY23-24, falling by 8 percent YoY from Rs. 289.32 crore in Q4 FY22-23, and the net profit declined by 98 percent to Rs. 0.18 crore from Rs. 9.4 crore, during the same period.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA increased from Rs. 27.8 crore in Q4 FY22-23 to Rs. 29.3 crore in Q4 FY23-24, representing a growth of 5.4 percent.
As of March 2024, NKSquared and Kamath Associates, two firms of Zerodha co-founder Nikhil Kamath, hold 2.29 percent and 1.97 percent of Nazara Technologies, respectively.
The stock has delivered positive returns of nearly 12.6 percent in one year, but declined by around 9.7 percent in the last six months.
Nazara Technologies Limited is primarily engaged in a service-oriented business around mobile entertainment services and is India’s only listed gaming and esports company with majority ownership of several leading gaming & esports brands with a presence in India, US and other global markets.
In esports, the company has India’s leading esports platform NODWIN Gaming; and Sportskeeda/Pro Football Network in the sports media space.
Written by Shivani Singh
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