Gameskraft, an online gaming platform, has time and again reported net profits of around INR 1,000 crore over the past three fiscal years. The Bengaluru-based company achieved a 30% year-on-year growth in the fiscal year ending March 2024 despite encountering various legal challenges.
As per the consolidated annual financial statements sourced from the Registrar of Companies, the Gameskraft’s revenue grew from Rs 2,673 crore in FY23 to Rs 3,475 crore in FY24 from operations. Gameskraft is known in the market for operating noteworthy gaming apps which include Rummy Culture, Playship, Pocket 52, Ludo Culture, RummyPrime and Rummy Time.
If we look at GAmeskraft’s gross gaming revenue, it comes from a platform fee or commission charged as a percentage of the buy-in fees that users invest in games; it remained its sole revenue source during FY24. Furthermore, the company has also made INR 46 crore from interest on fixed deposits and gain on sale of current investments, thereby tallying its overall revenue from INR 2,732 crore in FY23 to Rs 3,521 crore in FY24.
Gameskraft has over a dozen brand ambassadors similar to other gaming companies, which include Mahesh Bhupathi, Harbhajan Singha and Abhinav Bindra. It has been carrying out several campaigns on social media and TV because of which its advertising costs have risen by 113% from Rs 616 crore in FY23 to Rs 1,315 crore in FY24. Moreover, Gameskraft employee benefits has witnessed an upsurge of 23.5% to Rs 463 crore in FY24. Here, Rs 12 crore is contributed by ESOP cost which has been settled in cash.
So to say, from INR 1300 crore in FY23, its legal, communication, domain, web hosting, and other overheads took the overall cost up by 71.7% to INR 2232 crore in FY24. With this, there has been a two-fold increase in advertising costs, due to which it has outpaced Gameskraft's revenue growth; thereby causing its profits to drop by 10.8% to INR 947 crore in FY24 from INR 1,062 crore in FY23.
With an expense-to-earning ratio of INR 0.64, its ROCE and EBITDA margins stood at 69.4% and 37.46% respectively. Gameskraft's total current assets were recorded at INR 1,680 crore with the cash and bank balance of INR 306 crore at the end of FY24. While also achieving positive cash flow during the year, MPL reported a 22.2% increase in revenue from operations to INR 1,068 crore in FY24.
Also to note, Gameberry saw a 46.9% growth in revenue (INR 461.7 crore), with a staggering 150% surge in profit to Rs 92.8 crore in the same period. At the same time, major competitors such as Dream11 and A23 are still to release their financial results for FY24.
