Nazara Technologies Acquires Game Marketing Agency PublishME for $2 Million
Nazara Technologies made headlines today as its subsidiary, NODWIN Gaming, completed the acquisition of a 100% stake in the game marketing agency PublishME for a sum of $2 million. This strategic move is set to have far-reaching implications in the gaming and esports media industry.
NODWIN Gaming, based in Singapore and a subsidiary of Nazara Technologies, has acquired full control of the game marketing agency PublishME. The acquisition was completed for a total of $2 million, with the majority of the stake purchased from Nazara Technologies Limited and the remaining from Ozgur Ozalp, founder of PublishME. This transaction is expected to be finalized within 120 days.
This acquisition is poised to strengthen NODWIN Gaming's position as a major player in the gaming and esports media sector. Furthermore, it aligns perfectly with NODWIN Gaming's expansion strategy, with a particular focus on emerging markets. It will adopt the name "NODWIN Gaming" in the Middle East market while retaining the "PublishME" name in its original Turkish market. Additionally, Ozgur Ozalp, the founder of PublishME, will transition into the role of CEO of NODWIN Gaming Dubai.
PublishME, with offices in Turkey and the UAE, is known for its expertise in creating engaging and effective communications that connect brands with gamers. Its service offerings include Game Launch plans, social media management, sponsorship, and activations. Notably, NODWIN Gaming had earlier secured $28 million in funding in May from both new and existing investors, demonstrating a strong vote of confidence in its growth prospects.
Management Commentary and GST Penalty
Regarding the acquisition, Akshat Rathee, Co-Founder and Managing Director of NODWIN Gaming, stated, "This important purchase not only brings us new chances but also opens doors to many exciting possibilities for our gaming and esports media company. We are actively expanding our presence worldwide, especially in growing markets."
In September, Nazara Technologies faced a tax demand of ₹2.83 crore, accompanied by interest under section 50 of CGST, as well as a penalty. This action was initiated by the Director General of GST Intelligence in Mumbai and pertains to issues related to the export of services under LUT (Letter of Undertaking) without the actual realization of export proceeds.
Stock Performance and Financial Highlights
The share price of Nazara Technologies has surged by over 19% in the past three months, and it has shown a remarkable year-to-date (YTD) rally of 50%. Because of this news, Nazara Technologies gained 5% On October 5. Since its listing in the share market in April 2021, Nazara Technologies has delivered a modest 4% positive return, which includes today's 5% increase in its share price.
In the first quarter of the fiscal year 2024 (Q1FY24), Nazara Technologies delivered strong financial results with significant growth in key areas. The company's revenue increased by 14% compared to the previous year, reaching ₹254.4 crores.
Furthermore, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showed a healthy growth of 10% year-on-year, totaling ₹33.1 crores.
The Q1FY24 results also revealed an impressive surge in the company's Profit After Tax (PAT), which increased by a remarkable 31% year-on-year, amounting to ₹20.9 crores.
This acquisition is an achievement for NODWIN Gaming, pushing it closer to becoming a major player in the global gaming and esports media industry. With a focus on emerging markets and a strong presence in the Middle East and Turkey, acquiring PublishME opens up many new opportunities for both NODWIN Gaming and PublishME, gaming, and esports community will be closely following as these two organizations begin their exciting journey of growth and collaboration.
Share Market Today
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