Absolute Sports, which is a subsidiary of Nazara Technologies, has signed an agreement to acquire all the assets of SoapCentral.com. It is a leading US entertainment content site. The deal was valued at USD 1.4 million, and is expected to close within the next 30 days. Following this announcement, Nazara Tech’s stock surged 19% in just two days, reaching INR 805 apiece.
Venturing into Entertainment Publishing
SoapCentral.com is a well-known source for entertainment in the United States of America. This acquisition will strongly benefit Absolute Sports, marking its entry in the entertainment publishing sector. Its existing sports media operations like Sportskeeda.com and ProFootballNetwork.com will largely be benefited from this.
Ajay Pratap Singh, CEO of Absolute Sports, expressed huge optimism and potential growth in the entertainment publishing industry. This growth will be more than twice the size of sports publishing. With this acquisition, Absolute Sports has created a strategy to develop the content of its offerings and enhance its market presence in the US. They already operate SK Pop, which is a popular destination for K-pop and Korean News Media.
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Nazara’s Financial Performance
The net profit of Nazara Technologies is INR 0.18 crore in Q3 of 2024 which is down from INR 9.4 crore in Q3 of 2023. The main reason for this is losses from its discontinued operations.
Despite the challenges, they posted a strong overall performance in FY24. For the whole FY 2024, Nazara recorded a net profit of Rs 74.75 crore and made a 21.8% increase (YoY). Profit from ongoing operations rose by 41.2%, by reaching INR 89.5 crore in FY 2024, up from INR 63.4 crore in FY23. The operating cash flow (Pre-tax) was INR 131.4 crore in FY 2024.
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Will the acquisition be beneficial?
This acquisition of SoapCentral.com will definitely help Absolute Sports by making a strategy for diversifying and expanding its content offerings. The US market, which already contributes to a significant portion of the company’s revenue, is expected to develop more and give more significant contribution.
About Author
This article has been written by Mr Radhesh Tarang Shah, who is a third-year management student at Institute of Management, Nirma University. He has a passion for writing articles and poems. He has experience as a financial analyst, author, news writer, marketer and social worker.
