Games24x7 Crosses Rs 2000 Crore Revenue Mark in FY23, Highlighting Impressive Financial Turnaround and Loss Reduction

Games24x7 Crosses Rs 2000 Crore Revenue Mark in FY23, Highlighting Impressive Financial Turnaround and Loss Reduction

Games24x7 Crosses Rs 2000 Crore in revenue, marking a leading real money gaming platform based in Mumbai’s significant milestone for the fiscal year 2023. This achievement not only underscores a remarkable financial turnaround but also highlights substantial reductions in losses, showcasing the company’s robust growth trajectory.

In FY23, Games24x7 reported a robust 70.1% growth in revenue from operations, reaching Rs 1,988 crore compared to Rs 1,169 crore in FY22, as per its consolidated financial statements filed with the Registrar of Companies.

The company primarily generates revenue through platform fees from tournaments and contests, which constituted 99% of its operating income. Additional income of Rs 35 crore was accrued from interest and gains on current investments, bringing the total income to Rs 2,023 crore for FY23.

The firm’s strategy of disciplined spending on employee benefits and advertising played a pivotal role in mitigating losses. Total expenditure increased by 43.4% to Rs 2,147 crore in FY23, with advertising and business promotion expenses accounting for 66% of this figure, rising by 61.7% year-on-year.

Games24x7 operates popular platforms such as RummyCircle and My11Circle, the latter becoming the new fantasy sports official partner for the IPL for the next five years starting March. This strategic move, which involved tripling the marketing investment, is expected to bolster the company’s financial performance in FY25.

The company’s financial health showed notable improvements as losses decreased from Rs 282 crore in FY22 to Rs 199 crore in FY23. Despite this, the Return on Capital Employed (ROCE) stood at -18%, and the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin improved to -4.6%. On a unit level, the firm spent Rs 1.08 to earn a rupee in FY23.

With significant backing from investors, Games24x7 has raised over $107 million to date, including a recent $75 million funding round led by Malabar Investment, valuing the company at $2.5 billion. Tiger Global holds the largest external stake at 22.39%.

The impressive financial performance of Games24x7 in FY23 underscores its position as a leader in the real money gaming sector, poised for further growth and innovation in the coming years.