Nazara is pretty much a holding company at this point, as they no longer develop in-house gaming titles. They just keep jumping from one acquisition to another. Most game publishers globally talk about their upcoming releases, but Nazara talks about acquisition targets.
The problem with this M&A playbook is that they have to keep acquiring companies all the time to show growth because casual mobile games have a short shelf life. What is popular today might not be played by even 50% of those users 3 years later. Revenue of the fairly popular Animal Jam has declined from $18.6 million in CY2020 to $11.4 million in FY24.
Can’t really compare Nazara to Tencent. Gaming industry in China is at a whole another level with one mobile game making $2 billion annual sales. Although Mittersain constantly talks up the “future potential” of gaming and esports in India in every podcast and interview, the promoters sold a large chunk of their stake near the 52-week low.
I randomly checked a few casual mobile game companies listed in US, Korea, China and Japan and they all trade at very low earnings multiples and understandably so.
Disc: had invested last year and exited a couple of months ago with small gains. Sum of all parts valuation didn’t really make sense anymore.
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