Nazara Technologies (NSE:NAZARA) Q2 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to Nazara Technologies Limited Q2 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in the listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Jinesh Joshi from PL Capital. Thank you. And over to you, Mr. Joshi. Yes. Thanks, Siddant. Good day, everyone. On behalf of PL Capital, Capital, I welcome you all to the 2Q FY 'twenty seven earnings call of Nazara Technologies Limited.

0:47 We have with us the management represented by Mr. Raymond Stopper, CEO Mr. Nitun Sachiti, Executive Director Mr. Arun Agarwal, CFO and Anupriyadha, Head of Corporate Development. I would now like to hand over the mic to the management for opening comments. Over to you, Raimi. Good morning, everyone, and thank you for joining us. As you are all aware, this is my first earning call as the CEO of Nazara. And well, since day one, my priority has been to align the teams and operations while leveling up group capabilities by enhancing Nazara's central platform. And part of that has started to show throughout Q2 FY 'twenty seven.

1:34 This quarter, you've seen, has been a key step in Nazara's evolution into a global gaming platform. It is also the first quarter to include BluTown Best Play consolidated from 08/01/2026. Q2 was a record quarter for us. Revenue was crores, our highest ever, up 53% year on year. EBITDA grew 93% to INR120 crores, and EBITDA margin expanded three eleven basis points to 14.9%. Profit after tax from continuing operations was INR35 crores compared with a loss of INR 34 crores in Q2 FY 'twenty six. For H1 FY 'twenty seven, revenue grew 20% to INR $12.32 crores and EBITDA grew 52% to 166 crores.

2:22 Gaming revenue grew 122% to six fifty six crores at a 21.5% EBITDA margin, contributing 82% of consolidated revenue and effectively all EBITDA before corporate costs. Mobile revenue grew 167% to crores, too. In their two first months, as part of Nazara, Bluetail and Best Play generated revenue of INR329 crores, up 49%. EBITDA grew 64% to INR64 crores, driven by rapid product iterations, new markets, AI automated user acquisition and cross promotion. Blue Health leadership team holds 5.8% Nazara, aligning our interests effectively with all of shareholders.

3:08 Our existing gaming studios delivered organic growth of 11% in revenue and 17% EBITDA, underpinned by sustained investment in content. Wobbly Works grew revenue 41% on Animal Jam content, Kiddope grew revenue of 21% and Fuse Bugs launched Traders and a new Big Brother season. Curve grew about 27% and EBITDA 61%, driven by Sovereign Tower, the mobile debut of Wobbly Life and Human fall flat, which has surpassed 60,000,000 players. Much more importantly, long term platform is strong and is being enhanced. Bluetell's core capabilities now operate as a group centers of excellence across marketing, data, products and technology, with AI embedded in all four of them.

3:57 In a single month, the marketing COE team has produced over two ninety ad creatives for three studios across the group. And a single AI ready data stack is going to power analytics across the group. Every game we launch and every studio we acquire now plugs straight into these proven systems, enabling us to scale faster and more profitably. As you know, we have also expanded our leadership team. Besides myself, we're very excited to have Missoum Sakheti, Founder of Carrotlane, join us as Executive Director and Arun Agarwal, former Global CFO of Nest Digital Engineering on board Gas, the Chief Financial Officer. And with that, I will hand it over to Anubri to discuss segmental performance. Anupreya, over to you. Sure. Sure.

4:42 I just wanted to ask if, Nitin, you would like to add something here, and then I can probably cover the segmental performance. Sure. Thanks, Anupreya. Good afternoon to everybody. Some of you might know this. I've been a nonexecutive director on the Board of NAZARA. Recently moved into the executive role as a part of the promoter group, and I want to share why it's relevant as well. My life has been focused on building businesses and working founders, obsessing about consumers. I think the new consumer is most is spending most amount of time in gaming, and I think that NAZARA provides that opportunity more than any other place right now. The current market opportunity for us and consumer trends both point towards an intersection of short form casual gaming along with the market of U. S. Is possibly one of the few categories in the world, which is seeing the kind of growth it is right now as well.

5:38 At Nazara, my role largely is going to focus on making sure that we have strategic conversations and focus on governance, which is of utmost importance for anybody who's dealing in the public domain. Arun has joined us as a CFO in this, and we're all very excited as a new management. The team transition is more or less complete now. And with Raymond leading as the CEO and Arun as the CFO, it's exciting times for Nazara going forward. Thank you. Over to you, Anupya. Thank you, Mitul. I will now cover the segmental performance. In Q2 FY twenty twenty seven, our Gaming segment revenue grew 122% year on year to INR $6.56 crores. EBITDA grew 114% to INR 141 crores, resulting in an EBITDA margin of 21.5.

6:28 Excluding Blue Tile and Westlake, gaming revenue grew organically by 11% and EBITDA grew 17%. Mobile gaming revenue, including Blue Tile and Westlake, grew 167% year on year to INR $5.50 crores with EBITDA up 151% to INR 103 crores. Ethiopia revenue grew 21% year on year as subscribers grew... Rose 5% and ARPU increased to 7.94%, growing 8% year on year. EBITDA declined as Telopia stepped up user acquisition spend to accelerate subscriber growth while keeping new economics within our target threshold. While this grew revenue 41% and EBITDA 39% year on year on new animal jam content, including the Monster High theme season, FuseBob revenue fell 4% year on year on lower organic installs and downloads of similar games declined globally, while EBITDA grew 7%.

7:27 Fusebox launched traitors and a new big brother series. Love Island was the number one free role playing game on The US App Store in July. In PC and console, cost revenue grew 27% year on year to INR 77 crores, and EBITDA grew 61% to INR 30 crores, with margin expanding from 30.838.9%. Sovereign Tower received an overwhelmingly positive response in steam. Wobbly Life's mobile launch reached number three on both App Store and Play Store on our chart. And human fall flag has crossed 60,000,000 players. Moving to the offline gaming. EBITDA grew 29% year on year to INR 8 crores on flat revenue of INR 29 crores with margin rising from 20.3% to 26.2%.

8:18 Samsung opened new 10 new stores in the last twelve months with five more to open in FY twenty seven, and margins improved on record birthday revenue. As two point zero design and rebranding is complete, it launched slightly delayed pending regulatory approvals. Within our other businesses, AdTech comprising of Dataworks and Space and Time delivered Q2 FY 'twenty seven revenue of INR 124 crores and EBITDA of INR 0.8 crores. DataWorks pipeline is converting into new clients, though we expect a temporary dip in H2 as an anchor client restructures and positive ad spend. Absolute's posted revenue of five twenty three crores and an adjusted EBITDA of INR 1.7 crores, excluding pickleball and advisory costs and one time expenses.

9:03 Pro Football Network revenue grew 20% year on year with an EBITDA margin of 17% versus negative 18% in Q2 FY twenty twenty six. At SportsCata, content syndication partnerships launched in Q1 are now contributing revenue, partly offsetting lower ad rates while operating costs were down 13% quarter on quarter. With this, I conclude my remarks, and we will open the call for Q and A. Thank you. Thank you. We will now begin the question and answer session. Ladies and gentlemen, we will wait for a moment while the question queue assembles.

9:57 The first question is from the line of Aritya Kumar from AK Investments. Firstly, Raymond, congratulations for taking up the new position at Nazara. It's a very big responsibility. My first question is I have a couple of questions. First question is, what is the focus area for us under your leadership for one year that you want to fix or you want that some things needs to be streamlined like developing team or center of excellence, whatever. So can you just share that what is your focus for one year that you want to fix things in Nazara? Sure. So thanks a for the question. So we're focusing firstly on the Nazara platform. So we have a really strong baseline to work on top of. So we're going to the first actions we're going to take is leveling up those COEs and leadership positions from the BluTal team over to Nazara in order to enhance our marketing data, tech products, AI capabilities.

11:05 In the future, we'll also create a new COE, an ad monetization COE that will allow us to also enhance every single studio's ad monetization capabilities. With this, what we want to do is create a very strong but flexible platform, a platform that is informed by all studios, but is also able to share with the rest of the studios all the learnings and everything that we've gathered. So it's an ever evolving platform that keeps up to date with the standards of the industry. I think the biggest focus is going to be to align operations, set a deliverable bar and introduce AI in every single one of the studios through the COEs. So in a year's time, what we need to achieve is an AI operated company group and set of studios that could feed into and from those that central platform.

12:01 Of course, this is all and the main focus, as we've discussed and has been previously laid out, is gaming. And so that is where most of our efforts are going to go into. Okay. Okay. Great. Sounds good to hear. And on the gaming part, should we expect any flagship product launches under your leadership for next one year? Or mostly, it will be on the existing games only, the majority of our focus will be to get more and more revenue share. So can you I think share some light here. Yeah. Sure thing. Yes. Both of them. Right? So, like, the teams, all our studios are launching highly qualitative games in their respective verticals.

12:46 And we need to do two things. One is relentlessly iterate over the existing games, which are proven to work and have a really big audience. And second of all, keep on launching new games. You can see, for example, the Curve team improving certain like unit economics in some of their past games, but also signing new IPs and consistently launching new games. Right? There's there's many in the pipeline right now that have been launched recently. We've had several successes and others that are coming in the next months. You also have companies like Fusebox. They've found great success in Love Island. They keep on optimizing that game. And recently, this month, they just launched Traders, which has great initial metrics.

13:32 So the answer is we'll focus on both in order to maximize our reach both horizontally and invest as much as we can. Okay. Lastly, have a question on, as I mentioned earlier, for the long term vision for the company, you have grown revenues very strongly, right, in in your leadership in blue tile and display. Where do you see under your leadership for Nazara in next five years that you would be disappointed that if you don't achieve that under your leadership for five years? So what is the target you have for five year? I think I think, like, we need to remain, like, focused on the target, which is growing qualitatively. Right? We need to ensure that each studio has the capabilities to keep on delivering games and keep on delivering growth organically through each one of these studios and then at a central level, inorganically through further M and A. So our target is to grow qualitatively, consistently throughout the next five years.

14:37 So what is the growth rate that we are targeting, 25% or 30? What is that? We're not giving like exact guidance right now. As you know, I just entered the job. But what I can say is that like we are consistently going to expect growth, both organically and inorganically, from both the studios and the central group. Next question is from the line of Kunal Bajaj from Choice Institutional Equities.

15:27 Firstly, Raymond, congratulations on your new role. I have four questions, Mr. Rod. Starting with, can you help on explaining the renewed COE strategy under and post glutile consolidation? That is one. Secondly, we have seen that we have stopped giving orders as well as breakup of the offline game. Why are we doing that? Thirdly, we have seen that the fuse box revenue have fallen around 4% on a Y o Y basis. This is purely on the fact of lower inorganic installs. And I believe Q1 was also kind of a weaker quarter as well. So how we see the revenue going forward for the next two quarters?

16:16 And lastly, any update on the debt investments that we have highlighted in the last call over the noncore verticals? You very much. So essentially Thank you very much. So regarding the first question and the COE leadership. So the changes the leadership at BluTal was operating at a larger scale and essentially with tooling operational capabilities and AI know how that was already there and being applied. So what we decided to do is in order to fast track this UE transition, essentially change that leadership and enhance it with the BluTal existing capabilities.

17:07 So each one of these is going to bring a lot to the table. I'll give you a few examples. So marketing, for example, is bringing to the table a fully operational AI ready ad creative production system, which has allowed us to release two ninety creatives in one month across three studios in the group. This will increase exponentially as the team sets up the right tooling, the right systems with each one of the studios. The second piece, for example, in marketing is through AI, through these tools, through the scalability, being able to, from one team, manage essentially the marketing or help manage the marketing across pretty much every single gaming studio.

17:54 That allows us to optimize FP, employees or contractors. Essentially, we are able to reduce blocks when we have a spike of work and we don't have enough people in the studio or reduce idleness by really deploying the FTE efficiently across the group. On the data side, for example, we were working on essentially building a semantic layer that is consumed by AI and then makes a marketplace available to every studio that allows us to scale without throwing people at the problem. This will like increase and allow for growth without having a proportional increase in FTE behind it.

18:41 Products and tech will also bring a ton of efficiencies and capabilities. On the tech side, our new way for AI frameworks will reduce game development cycles by a lot, like we're talking very high percentages. So teams will be able to launch new games faster, develop new features faster, integrate them in their existing games, also launch new games. So that's kind of the rationale behind that COE leadership change. And we're building the teams around this business right now in transition, but we've gotten a hold of it, and they're pretty much deployed across all gaming studios as of today. The second question, broke off slightly. I believe you were mentioning something about offline gaming. Could you repeat that question?

19:31 Yes, sir. So actually, I wanted to understand that we have discontinued giving non win numbers as well as the breakup of the off line business. So any strategy behind that? So on the off line business, essentially, our strategy is to continue to grow the different centers, right? And essentially, look at it as one single unit because like both of them are very much in decline. So as you know, Funky Monkeys have been really delivering both growth on the top line and bottom line. They've launched a ton of new centers. They've done really well in the centers that they've opened. And so we expect their success to keep on delivering. On Smash 2.0, we have we're making really good progress in Smash, the new Smash experience.

20:22 However, there's been a slight delay. So I believe it's going to be launched in the next few months. Regarding NordVen, I will defer to Anupria. Anupria, do you want to quickly Yes. Jump So in line with our focus on gaming businesses, we have started reporting we didn't include NordVen as an update. However, it is an associate and a a part of our business, and the business is growing well. A few points that I would like to cover is that they have... They... The Comic Fund IT is going very strong. Wise Rag is one of the cities that comp contributes, and they've seen very, very good traction. They're expanding their huge media strategy is playing out very well. In terms of number, we are seeing almost flat revenue and EBITDA growth for H1 for Nordic.

21:13 And it is because two of the IPs, iPopstar and all that matters, have moved from q two to q three. So accounting for all of that, we'll see growth in the coming quarters as well. And I think other than that, I just also want to mention that in line with our strategy, and maybe Raven can pitch in here, we are looking at ourselves increasingly from a platform lens. So we will also try to report our gaming businesses in a consolidated way It allows us to make more decisions on the capital allocation prudently, focusing on businesses which are growing in a particular quarter, and we are seeing good ROAS, the ability to spend increases. Please feel free to add in further we want to talk about our platform strategy. Yes. So essentially, as we grow these units, right, we want to be very flexible in how we deploy capital, how we like grow this platform and how we invest across the board.

22:12 And I think that's a key piece of like this forward looking growth, qualitative growth, right? So as we move forward, we would like consolidate these units in order to be able to invest flexibly and also be able to share much more between those units throughout that specific segment. And I think your third question was around fuse box revenue. Anuprey, I can take this or... So essentially, for fuse box yes. So for fuse box, as you correctly mentioned, revenue, we've seen a slight revenue decline. This has been mainly due a decrease in slight organic installs.

23:03 However, the team has done a great job in optimizing EBITDA on the other end of things. They've increased the unit economics and the user average revenue per user. This has been done through our own web shops. So instead of like the fees that are being charged to the normal app stores now, the fees are much lower on our proprietary web shops. And also, they've optimized content and employee costs throughout the year. I think that the most important piece here for Fusebox, though, is we're pretty bullish into what they're doing as a team, right? The capability they have to find new IPs and to launch new games with those IPs, those reality TV show IPs, the market is extremely big, right?

23:51 There's barely any competition. And essentially, they're extremely good at executing on that segment. We've seen this with traders. They just launched this great metrics. So we'll know more about this in the coming months. But we're very excited about, like, the team's capability to keep on launching these IPs, specifically now with the platform enhancing those development times and marketing capabilities? And the fourth question, sorry, you also I didn't get it fully. It was about investment in noncore elements. Is that correct? Can you rephrase? The participant got disconnected. The next question is from the line of Priyam Shah from Trinitra Asset Managers. Hello.

24:39 Hi. Thank you for the opportunity and exciting times ahead for you all. So I just wanted to understand over the last two odd years, almost all of Nazara's growth has come through acquisition, be it Fusebox, Curve, Smash and now Blu Tile. And this has been in our DNA acquiring anchor studios and then ramping them up. And the organic base that we had went through the Pokabaji write off the Nordwind sort of deconsolidation. This is the first quarter where post PokerBazi, the portfolio is fully in the numbers more or less, right? So this is the right sort of base to anchor on. Given our run rate of roughly INR900 crores a quarter once Bluetail is in for a full period, can you just give us a three to four year revenue framework, what organic growth rate the existing gaming portfolio can deliver and from which engines. So what share of future growth will come from M and A and what will come from organic? This is what I wanted to understand, basically a three to four year sort of road map in terms of numbers.

25:51 Yes. So thanks a lot for the question. So essentially, our main focus is qualitative growth, as I mentioned. So I think, as you correctly pointed out, this was the first quarter and some time with organic growth. And I think we want to double down on qualitative growth coming from the synergies that this platform creates. So by enhancing this platform, by fully focusing on having state of the art tools, capabilities and AI synergies in each one of the departments, we really expect each one of these gaming studios and the gaming segment to grow organically. At the same time, we know that there are many interesting opportunities, specifically now with, like, the onset of AI across the industry that we would like to think about.

26:47 And so that combination can be a very powerful one, one in which we built this platform to support the studios, but we also allow the studios to inform that platform, or we also acquire new companies that can actually also mold that platform and make it better and more efficient to double down on the organic growth, compounding both sides of it. It. As of now, we can't really give that future guidance. We can't just set those numbers because we are just focused on delivering qualitative growth. And that's our main target, both organically, also inorganically in the next few years. So that's what we're focused on, and that's what we'll deliver. Thank you. The next question comes from the line of Samarth Patel from Equiris.

27:50 Please go ahead. Congratulations, Raymond, for the new role. Had a couple of questions. So for the Blue Tile and Visway, if I look at the first quarter FY 'twenty seven, we had around 10.5% EBITDA margin, and the user acquisition was around 55% of our total revenue. While I look at the August and September numbers that you have given, the margins are at around 19.5%, and our advertisement and promotional spend has fallen to around 75%. So I just wanted to understand that we have deliberately dialed down the acquisition. And does the revenue growth hold at this lower intensity of advertisement spend? And what kind of margin and spend ratio we should build from here onwards? That's my first question.

28:44 Thank you very much for the question. So when it comes to gaming and specifically mobile gaming, there's a very strong seasonality component. And you essentially need to move with that seasonality. August is like this quarter is the worst seasonality. So essentially, August is pretty much the worst month in the year. So essentially, what we do and the team does in those cases is adapt progressively. So when we talk about EBITDA margins, right, when we talk about these kind of things, we need to look at the year as a whole, and we need to look at quarterly evolutions. But we should never anchor ourselves in one quarter or another in terms of EBITDA margin.

29:32 The team's main mandate is qualitative growth, year on year qualitative growth. And that you can see with the numbers from, like, comparing FY, these quarters FY 'twenty seven with FY 'twenty six. And so the team will continue to drive that quality of growth through the right marketing allocation. If there is a certain seasonality element to be taken into consideration, the marketing team adapts accordingly. So that's pretty much the reason behind this. You also need to understand that as we purchase current users, we're building our future cohorts, users that will play for years in our games, right? So we will deploy marketing spend whenever it makes sense, wherever it makes sense, But ultimately, always with one thing in mind, which is qualitative growth.

30:26 Well understood. Raymond, but can you help us understand what kind of revenue growth we can expect from BluTal and BestPlay from here onwards? The margin aspect is well understood, but any sort of guidance that you can provide on the revenue growth side? So again, so we're focusing on that qualitative growth, right? And we intend to deliver year on year growth throughout the next years. We won't commit to any specific guidance. But as I mentioned, right, both BluTown and Despey are also receiving a lot of information and a lot of capabilities from the rest of NAZARA, too. So we expect it to be a bidirectional relationship with NAZARA in which Fluton Best Buy will also incorporate a lot of good practices and a lot of tools that the rest of the teams are using in order to further our growth.

31:23 Understood. That was really helpful. Now my second question is on FuseBox. If I look and we touched upon the FuseBox revenue fell around 4% on a year on year basis and slightly lower organic installs. So now with Traitors Live and I think Big Brother season also starting from September, when do you expect Fusebox to return to growth? And any flavor that you can give around Traitors cohort and how it is monetizing against, let's say, low violence cohort? Yes. So thanks for the question. So essentially, here, we're not going to give any specific time line on any of this because it doesn't really kind of make sense. But what I can definitely say is the team is doing the right things at a very fast pace.

32:17 They've launched traders like, and they're also preparing several new seasons. They're they're shorting or like shortening the the content cycles that... So the amount of time they need to release new content, also the amount of time they need to release new games. And the forward looking strategy is essentially we're going to keep on signing IPs and keep on signing games, right, with a growing speed capacity in both content and game launches. So traders themselves is looking pretty good. So the initial numbers put some of these cohorts. They're the most loyal cohorts, of course, because they're coming from our other games. But like I believe it's a 2x of what Love Island is seeing or even more. And if you're correct me if I'm wrong. Yes. 3x, yes.

33:09 3x, yes. So essentially, we're seeing very good initial metrics, very good retention, very good payer retention. Day one payer percentages are extremely healthy. So of course, this is the initial cohort. So we need to now like, pretty much expand marketing operations and ensure that the game reaches the right audiences. And if I may just add a few things here, especially for FuseWorks. So we have a very steady cadence of seasons across our IPs. Right? Now there we have four IPs, and we have around seven seasons planned for this 2026. Four have already been delivered. And then two are live now, as you mentioned, Big Brother and as well as a new season of creators is being launched. There's Love Island also live. So in all the content challenge of Fusebox is extremely busy, also driven by their own process optimization, which allows them to create content faster.

34:04 And as Devin mentioned, creators is a is a great success that we are seeing early this, but we are excited about it, and we will step up QA and content investment as and then we are seeing. So you will see temporary bits on on revenue depending on the seasonality of content, but there is strong efforts going on, on both long term and short term basis for delivering growth profitably. Understood. That was really helpful, ma'am. Now on WideWorks, for this particular quarter, we have strong very we have seen very strong revenue growth. And I think Animal Jam's public release was supposed to be on Roblox by end of first quarter of FY 'twenty seven, and then I think we had also planned for launch of Slinky Go in second quarter FY 'twenty seven. So how both of these been completed, and what are they contributing currently in terms of revenue?

35:01 So WildWorks has seen a very strong content launch in this quarter. Kidsune, which they have launched, have what drove the highest daily revenues in games lifetime. Monster High integration also supported this revenue along with mythical jam, toner and new pets. So going forward, we... As Raymond mentioned, will benefit from that AI creative ads engine and the IAC prioritization framework that we are working towards. In terms of the newer best, the two newer best on Roblox and Go Slinky Group, Roblox, the traction that we saw didn't meet our bar bar yet, so we have shelved the game for now. On Go Slinky Go, the early soft launch retention metrics are not strong enough, but we are doing several activations and features which are underway through October and November, and we will scale this once the KPIs clear as in light... Gate.

35:54 And it's the same discipline that we spoke about. We will put you in capital behind titles where data supports us, and we will continue to look at launching CodeLink ego once the KPIs meet our threshold requirement. Raymond, please feel free to add. I believe you summarized it correctly. Yes. I mean just one last bookkeeping question, if I may. If I just look at the share of loss from associates, it was around 23 crore this quarter. So this was entirely driven by NordVin. And if that's the case, I mean, what has been NordVin's growth this particular quarter? And any countries and listing time line that you can help me help us with?

36:44 So Nodwin reported an EBITDA loss in this quarter in this H1 because of which you're seeing the impact, plus they have also taken an impairment on a Turkish company, published me that, that was invested in because of which there's a loss at the PBT level. Yes. You're right. The the loss mentioned in the ZARA book is due to the account consolidation. Yeah. Arun, please feel free to add in case you want to. No, you covered it well. It's because of NordVin. The whole loss is because of NordVin. And as Anupya mentioned, they have done the impairment of their Turkish assets, so which is causing this number to be higher. Operationally, also there is a loss, but that's not that high number. So this looks higher only because of that onetime. Otherwise, on an operational basis, the numbers are quite flattish.

37:33 And just to add on the fundraising plan for Northern. Northern is looking at a pre IPO round as well as getting itself for IPO that we're all excited about. So the efforts are still on. As you would imagine that IPO timelines take time. So efforts are on that as well, as Northern team has mentioned earlier. Earlier. The next question is from the line of Rahul from Daulat Capital. Mister Raul, please go ahead. Mister Raul, please unmute yourself and go ahead.

38:26 Since there's no reply from the line of mister Rahul, I will promote next that is from Modi Advisory. Please go ahead. Can you hear me? I can hear you. I can hear you. Alright. So I'm new to the company, so I see the questions in the delay. But from what I understand, I'm hoping a previous participant also pointed out, and I'll just add my thing to it. So we've grown inorganically. Now two issues with this that I have is, first, we've grown somewhat where I don't see a synergy between our acquisitions. We've grown offline Then we have sports in The US, which is an online media article writing platform, and then we have our gaming.

39:20 So I'm not seeing a clear strategy. If you could help me understand what's the strategy there behind doing various seemingly unconnected things. Second, I want to understand the industry. Right? So when you say we're gonna keep accelerating acquisition of IT, from my understanding, and if I compare it to, say, a music label industry, right, the IT life of a gaming seems quite less versus, say, the IP life of the music. While we are not paying extremely high valuations, but we're not realizing a terminal value for these acquisitions in my opinion. So if you could just help me understand how your thought processes around acquisitions, what you see as the terminal value for these gaming led IP acquisitions?

40:13 And how are we trying to improve the lifetime value for these games or the studios that we acquire? So thanks for the question. So the first thing regarding the strategy, As we've discussed, our main focus is gaming. In gaming, we have three pillars. We have mobile, we have PC console, and we have offline gaming. The total addressable market in gaming is over $200,000,000,000 So there's great opportunities in each one of these segments. Beyond that, there are a few other companies that are under the group. These, obviously, were setting up for success and trying to work towards increasing their capabilities through also some of the COEs and trying to enhance their operations to increase revenue and EBITDA.

41:12 But ultimately, we're open for a strategic exit at some point. So essentially, they're not core to the company's future strategy. As we've discussed several times, our main focus and goal is to become a global mobile gaming platform. And these companies represent a very minor share of revenue and EBITDA. In fact, in Q2, as we mentioned, 82% of revenue and 100% of EBITDA pre corporate costs came from the gaming segment. To the second question regarding IP. Essentially, these IP licensing deals are not short term.

42:02 They respond to user and audience preferences that are pretty much Ladies and gentlemen, mister Raymond's line has been disconnected. Just give me a moment. Yeah. While you try to connect him back, I will take that question. Sure. Yeah. So so our Yes. Anubhria, just before you answer that question, I didn't mean the IP life as in the legal life of it. I meant the useful life of it. So in that context. Yeah. Sure. Thank you for the clarification. So our gaming business is very diversified, and we are we are... We... Our portfolio has mix of games, which are better different genres of gaming as well as the user profile.

42:59 Some of our games are extremely long in tenure in the sense that, for example, HFF, human fall flat, a curve IP. We have celebrated the tenth anniversary for that game. Animal Jam has been around for a really long time. So our diversified business model, which has IP with a very, longer lifespan or shorter lifespan where people churn out, It is a it is a diversified gaming platform which provides... Which is... Because of its diversification and the nature of IP, allows us to grow over time. So I think our valuation consideration when we are buying the businesses are also taking into consideration on what is life of the IP that we see. Or for that matter, life of the game engine. Right? For example, we acquired Fusebox, a very solid game engine. We we started with one IP in the past, but we have layered on other more IPs, and we'll continue to diversify into different IPs. So when we acquire businesses, we think of longer longer term growth and profitability of the platform team or the IP to price it accordingly.

44:07 Okay. Alright. If you would allow me just one more question. So, Mitul, I just wanted to ask this question to you. You know, given your past track record with Carrot Lane And, like, just in general, any cross learnings or any... Like, if you would have to replicate the success of Carrotlane at NAZARA, what... Like, something from or people... Like, I'm just trying to understand what you're trying to build here with NAZARA now in your second state. I think thank you for the question. I think the principles of building a business are certainly what you can repeat across businesses.

44:53 You stay true to the problem and stay focused on the problem. You stay agile to solve for what you're doing. And you really look I mean, the goal has to be to solve for the consumer. As long as our eyes are on the consumer and we've built the COEs to sort of keep solving across all of this, I think we're strategically well placed to go after this opportunity. There's nothing that's short term. Your... Some of the questions that you're asking are are valid, and we are gonna grapple with those as well also. That's the honest answer. We don't have... Everything is not sorted, but I understand you have to go wide before you go narrow. I think now we have the scale to go narrow and really go after the business. 80 of our business now comes from gaming. That's where we're going to focus and sort of keep building on that part of it.

45:40 The platform is built by the team before us and really the right time for us to scale on this with all the extraordinary talent that we put together. Alright. Got it. Great. Looking forward to tracking this. You. That's it from my end. Thank you. Thank you. The next question comes from the line of Netik from NV Alpha Fund. Please go ahead. Hi sir. Thanks for taking the question. Sir, I have only one question. I just wanted to understand this transaction, acquisition that we've done with the right hand display. What sort of payment is already made? What sort of it is yet to be made? And how do you plan to fund all of that?

46:28 I can take this up. So it's approximate the value at which we have bought it is $3.00 $3,000,000 of which 85,500,000 has been already paid. The balance will be paid in three tranches. One will go in October, other two will go between December and March. October payment is already funded with the share issuance, which has been done and informed through the exchange. So that money is ready to go out in October. For other two payments, we are looking for debt. So there are conversation which is happening with multiple bankers at this point of time, and those will get converted. So approximately $100,000,000 is what we are trying to raise as a debt, and balance would be funded through internal approvals.

47:15 Sorry. So you mentioned three out of three eighty six is already paid. Then what part is higher share issuance? And what is left, 100,000,000, dollars 200,000,000 still left? Or how much is still left, which will be raising funds for? Yes. So out of $3.00 $3,000,000.85500000 dollars is already paid. Dollars 77,000,000 will go in October, which has been raised through issuance of shares, which the management team has invested, and he spoke about it at the beginning of the call. So the $77,000,086 is done. The for balance, 100,000,000 approx will be taken as a debt. We are in conversation with multiple bankers, it is at the very, very closest stage. And for the balance remaining will be few million dollars that will be funded through internal accruals.

48:05 Got it. Got it. Very helpful. That's it from us here. Thank you. The next question is from the line of Nikhil Gupta from Bayou Capital. My first question is with respect to our retail and Best Buy segment. So can you provide the split of advertising and revenue and the in app in app purchases, the split of the revenue among these two particular segments? And how many games currently we have as of now? And do we want to scale it up going forward in terms of our qualitative growth? Yes. So currently, the revenue share stands roughly at about like mostly, the vast majority is in app advertising.

48:55 So depending on the game, depending on the specific cardinality, but I'd say it's about 95% to 96% in app advertising and the rest is in app purchases. This, however, will change in the future as we ramp up or release games that are more IP heavy. Regarding new games, yes, of course. Right now, we are scoping new games to launch. We launched a game about two to three weeks ago called Wow!ZOKOO! Which is now being technically tested, and we'll know about its numbers shortly. And throughout the next year, we have definitely a few releases planned within the Bruton aspiring system.

49:49 Okay. The next question is on balance sheet. How we are planning to reduce the burden on our balance sheet? I think previously, we have communicated that we may try to disinvest some of investments in NordVein and also some noncore assets of Absolute and ATEC. So any color how we are thinking in terms of doing that? And in addition, what will be our acquisition strategy going forward, maybe this financial year and next financial year? So I'll take the first question, and Raymond, you can take the other one. So our focus is very clear. Anything which is noncore, we are looking out in the market. Obviously, it is a process which will be followed, but the focus is very clear. Gaming is where we want to double down. And anything which is nongaming, we will deconsolidate and keep monetizing it as the time goes by.

50:49 Have we reached to some additional staging... Additional conversations and and with our efforts? It's a process. It will take some time, and we'll come back at the right time to inform as it moves to to a stage where this needs to be communicated. So I'll I'll also add, we are... All of these businesses are also profitable in their own right. Right? So there is no urgent need. Of course, if we are able to find the the right value and right home for these businesses, we would like to monetize that. But it's not a distress sale or anything that we... Or or a timeline that... Hard timeline that we are committed internally to. We will opportunistically look at options and strengthen our balance sheet should an opportunity come along. You.

51:40 Regarding the second question yes, yes, please go ahead. Yes. Apologies. Yes. Thanks for that question. So we're very again, we've been discussing, right, the main focus for the company is going to be quality of growth, both organically both organic and inorganic. Regarding inorganic, we're, of course, right now focusing on Utah's acquisition and the integration of the new COEs. So there's a lot of work to be done internally. However, we're still reviewing M and A opportunities on a consistent basis. M and A is not something that's a faucet you can turn on and off. So we want to make sure that we are evaluating every opportunity. We are not aggressively pursuing inorganic as of now, and we're focusing on that Lutale integration new COE transition.

52:29 However, if the right opportunity comes along our way, we are willing to take a look, and we're willing to evaluate. In the mid- long term, we will, for sure, evaluate inorganic growth once again. And of course, it has to be an acquisition target that fits our thesis, our gaming thesis, together with a target that either can pretty much grow and take a lot from our NAZARA central platform or can lend a lot of capabilities to it to further enhance the rest of the group. That makes sense. Thank you so much. That is from my side. Thank you. The next question is from the line of who is an individual investor.

53:17 Please go ahead. Hello. Hello, everyone. First of all, many congratulations to the new management and really exciting times ahead. My question is to Raymond. But as Nazara scales up, how do you see the balance between India and international markets evolving? I mean, when will the primary focus be, say, for next three to five years? And say, which of these markets do you see offering greater growth potential in terms of scale and profitability? That's a great question. So India has the largest population in the world. So as new users come and become digitally active, right, we're gaining pretty much like potential addressable audience by the year.

54:23 So in the short to midterm, however, India still has to develop a lot of the mobile unit economics that other parts of the world have developed. So from our perspective, we focus on both. We focus on India through like many of our companies that are actually sitting in India and targeting Indian users, but also not leaving out other, say, digitally active markets like could be The U. S, Europe and so on. So our strategy is short to midterm, like combine those two with a little bit more of a heavier investments in, say, U. S. And Europe. However, really maintaining a stronghold in India and in the mid to long term as India develops those unit economics further and includes more digitally active users to the market, we will, of course, have a great standing to target all that potential user base.

55:25 So we're pretty much balancing the current addressable market between those two. But mid- to long term, India will have a huge, like increasingly acquisitive addressable market that we will have a unique advantage to address against every other gaming company out there. Thank you very much. Best of luck. Thank you. Thank you. Ladies and gentlemen, as there are no further questions, we have reached the end of question and answer session. I now hand the conference over to management for closing comments.

56:14 Hi. Well, thanks a lot, everyone, for joining. It's and thanks for your questions. So as we mentioned previously, we're extremely excited about the new leadership transition, everything that's going on in every echelon in the company. So of course, we really appreciate you all joining. And a big shout out to also the previous leadership and management team for making this transition possible. So thanks a lot once again, and we'll see you and hear from you soon. Thank you. Thank you, everyone. Thank you. Thank you. You. On behalf of PL Capital, that concludes this conference.

57:02 Thank you for joining us, and you may now disconnect your lines.