Fair enough, I think the ‘scarcity premium’ as you mentioned is what I’m struggling to get a sense of. It is a tense tightrope walk between valuation and chasing future probable growth at the moment
The best thing about nazara is that they do a lot of acquisitions and partnerships to strengthen themselves and if we see more investments like Nodwin gaming which is growing at a rapid pace then nazara is poised to grow at a very fast pace, hence valuations won’t matter much and will justify because of fast growth YOY and scarcity premium.
The only concern which I have is of low promoters holding.
3 Likes
Decent enough insight by Vodafone about their vision of larger digital agenda. First, it was the Music foray and now it is a gaming foray. They have been mindful of things lately. Gaming and music are sort of a must-have in the kitty of the telcos.
Nazara has many collaborations into telcos + Gaming already.
Good signs that they were able to collaborate with VI Gaming. Esports is on the minds of many telcos, Reliance Jio is the leader which can grow the ecosystem many folds in India.
2 Likes
Even tho Nazara is growing too fast with new initiatives may it be partnering with cinema houses, valorant APAC production and other things, they have actually slipped with a few contracts with the other emerging production companies can work upon.
Their biggest rival currently is Skyesports from JetSynthesis ( Sachin Tendulkar is an investor there). SkyEsports seems to have good connections with the ESFI (esports federation of India) which is a + for SkyEsports. They also leveraged Sachin’s named cricket game which had 1milion+ active viewers(if I am not wrong, post was shared by their ceo, co-founder). And they also host other tournaments.
One of the major factors can be talent retention in this field and the production quality. Tho nodwin is working on new talents ( recently added a few new names both to the casters and the analysts desk ). However, SkyEsports also has good talents and superb production quality.
And I think, JetSynthesis might launch their ipo if they close out with a new investment raise before ipo fillings.
3 Likes
Indeed it will be beneficial for the ecosystem and Nazara as well, provided the big brother does not end up acquiring rest…
All the more possibility for being acquired?
I think just like JD Mart of Just Dial, my biggest fear of investing in Nazara is it being an acquisition target of Reliance or any other big listed firm…
Thoughts Welcome!
Disc: Tracking position
2 Likes
Some pros and cons with collaboration with VI/Telcos and a snippet on E-sports market which is expected to grow from 300Cr to 1100Cr by 2025.
Nazara will eventually keep learning newer things from different set of clients as gaming is in a nascent stage in India.
1 Like
This is such an interesting graph, I’m just wondering with the increase of VR gaming and metaverse, which market share will it take.
Arcade and handheld gaming are already diminished, I think mobile gaming will lose its share and mobile games will change their compatibility to VR to sustain the change.
1 Like
Nazara + PVR - wrt e-Sports
e-Sports is just like IPL with a different set of audiences.
As a 90’s kid, I played cricket on the streets a lot. But as a GenZ teenager, i think i would be playing a lot of videos games specifically multi-player games as an amateur.
Coz i played cricket physically that is why i also like watching IPL matches. Probably same applies for Wimbledon and FIFA but the common thread is that I played that sport in whatever capacity i could.
Nowadays same applies for Gaming and e-Sports. An amateur would want to watch e-Sports matches hosting their favourite clan or player.
Virat kohli - Dhoni wrt IPL
Team Soul Fnatic Orange Rock - PubG
4 Likes
The gaming-focused fund gives access to good gaming companies.
3 Likes
Amazing Thread on Nazara
A great interview with the MD of Nazara. Here he discusses the business of nazara, how they want to go ahead in the future, what all industries they are exploring and focusing on with the view of 2030.
6 Likes
nodwin is the esports products part of nazar’s chain. used to host a pc game named valorant.
seems they have lost this time to skyesports of JetSynthesis coz skyesports and organizing the official valorant tournament this time.
announcement here : https://twitter.com/skyesportsindia/status/1516394277160448007?s=20&t=bgyhbmU6XTY-9JaBMtARdw
might be wrong but this is what I see currently.
4 Likes
Super interview. Loved the clarity of thought and seemingly high ethical standards that Nitish holds Nazara to. Avoiding debt and not chasing vanity metrics.
Disclosure: Invested at 2000. Bullish and Biased.
4 Likes
at what price is nazara a value buy with good risk reward ratio… current 1300 levels seem very attractive but since it’s the time of beating down of new age tech stocks can it go much much down considering its high pe and all?
also is the company oml which has many standup comedians in its umbrella and events like nh7 weekender fully owned by nazara through nodwin?
I do not understand that this company seems to be doing so many things over last 20 years, and also post listing, in one of the biggest industry globally but is still a mere 4k cr company…their mix of profits change significantly every year which is their current narrative that they acquire companies, which they call friends of nazara, and then scale them…point is doing all that and they could only scale themselves to a 4k crore company in booming gaming industry?
What went or is going significantly wrong?
Disc. Had tracking position which I exited few days back. Not a buy/sell recommendation. My failure to understand this company and grow with it…
2 Likes
The industry has just started out in India buddy. May it be creation of games, organizing events, esports, content creation and its all because there was covid and the cost of data becoming very affordable. So,the sector has come into tailwinds.
Maybe you should watch their ceo’s interview shared earlier. it’s a good view of their journey. However, personally I feel, its a khichdi right now with high valuations and no moat rn witch competitors growing more in a few segments.
disc: not invested.
Gaming industry is not a very sticky industry from customers point of view. Customers tend to change their games quite fast.
Many stocks like Nazara got lifted after their listing. Now these stocks are coming to ressonable levels.
Cheers
Disc: Not invested.
3 Likes
Nazara Q4FY22 concall notes
Kiddopia brand campaign performance marketing has kicked off in the USA. Marketing spends before Apple policy change we used spend $800k on marketing of which 60% on Google, 20% on FB and 10% on Apple .Now the apple pie remains the same but for others Iron source & unity platforms are seeing increased spends upto $1.2Million pm of which 800k is the same as earlier and additional $400k spent on YouTube.These are experimental ideas and we cannot give a guidance on subscription growth currently.
In eSports strategy to get operating leverage by providing content to multiple OTT platforms and also with more gaming coming into market will drive margins.
Four types of eSports – Whitelabel events where we do events for Game publishers , second is own IP events where we organize everything from prize money, pricing contents, Media business(SportsKeeda) and D2C business. Overall growth 55% in that media 84% growth and others around the same levels. This FY23 will have more growth due to gaming merchandise business & offline events(can add 70-80crs)
We cannot add Ads on our streams as Ads are decided by our streaming partners like Youtube or OTT hotstar. We just show sponsorships on our content.
Working with Rusk media to create a new portfolio of gaming with entertainment content, rusk can create content and publish IPs
Broadbased correction in tech names makes M&A interesting as valuations have softened.
1 Like
Nodwin and Star Sports set to Host the Biggest BGMI Tournament, will be Aired on Television – Insider leaks suggest that Nodwin Gaming and Star Sports are set to host the biggest BGMI tournament. The matches will be exclusively broadcast on television on a dedicated channel.
~ 49% revenues came from esports segments of which,
~ 73% or 2247mn came from nodwin gaming ( in esports divison )
So, if the leaks are correct, this can be a great push to the esports revenues as it is currently commoditized (I feel personally) as they just brodcast on youtube along with any other platform if their is a deal ( generally loco in nodwin’s case).
Now, if this thing turns into exclusive deals, means this can become a great revenue push.
Also, the ip holdings of this tournament is not clear. If nodwin is holding the ip then they might be able to leverage this event by reproducing content from the tournament into their socials for additional revenues.
Let’s see what’s to come. Also, it shows the management being capable as they are the first movers into every new thing and able to strike deals in various forms.
dis: No investments as on date.
EDIT : IT’S OFFICIAL NOW.
EDIT : Getting news that there might be regular monthly lans/competitions which might get brodcasted. Now depends upon who will brodcast… Newer channel operators comming to bid will get nodwin’s esports arm additional revenue as well. And their annual dreamhack event is also going to come soon which couldn’t be held perviously ( if I am not wrong ) due to covid… So, additional revenues from here as well… Do not know of the esl pro league at the moment…
8 Likes