Real money gaming platform Games24x7 has experienced significant growth, with its revenue increasing by 70% year-on-year in FY23. The Mumbai-based firm managed to control spending on employee benefits and advertising, which helped limit its losses during this period. Games24x7's operational revenue rose by 70.1% to Rs 1,988 crore in FY23 from Rs 1,169 crore in FY22, according to its consolidated financial statements filed with the Registrar of Companies.
Games24x7 operates RummyCircle and the fantasy sports platform My11Circle. The primary source of revenue for Games24x7 comes from the platform fee charged for joining tournaments or contests, accounting for 99% of the operating income. The remaining revenue is generated from the sale of virtual items in freemium games. Additionally, the company earned Rs 35 crore from interest and gains on current investments, bringing the total income to Rs 2,023 crore in FY23.
Advertisement and business promotion expenses were significant, making up 66% of the overall expenditure, which increased by 61.7% to Rs 1,421 crore in FY23 from Rs 879 crore in FY22. The company's spending on employee benefits, legal, travel, training, recruitment, subscription memberships, and other overheads increased overall expenditure by 43.4% to Rs 2,147 crore in FY23.
Despite the increased spending, the firm's losses decreased to Rs 199 crore in FY23 from Rs 282 crore in FY22, thanks to the 70% growth and controlled costs. The ROCE and EBITDA margin improved to -18% and -4.6%, respectively. On a unit basis, the company spent Rs 1.08 to earn a rupee in FY23.
Games24x7 has raised over $107 million to date, including a $75 million round led by Malabar Investment, valuing the company at $2.5 billion. Tiger Global is the largest external stakeholder, holding 22.39% of the company. In March, My11Circle became the official fantasy sports partner for the Indian Premier League (IPL) for five years, outbidding rival Dream11. Games24x7 also announced a tripling of its marketing investment this year, which will be reflected in the company's financial performance in FY25.
コメント