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Games24x7 crosses Rs 2,000 Cr income in FY23; controls losses

EntrackrEntrackr · 1y ago
Games24x7 crosses Rs 2,000 Cr income in FY23; controls losses
Medial

Real money gaming platform Games24x7 has continued to grow its scale: their collection grew 70% year-on-year in FY23. The controlled spending on employee benefits and advertising helped the Mumbai-based firm keep its losses in check during the same period. Games24x7’s revenue from operations grew 70.1% to Rs 1,988 crore in FY23 from Rs 1,169 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. Games24x7 mainly runs RummyCircle and the fantasy sports platform, My11Circle. The platform fee deducted for joining tournaments or contests is the primary source of revenue for Games24x7 which accounted for 99% of the operating income. The rest of the operating revenue comes from selling virtual items in freemium games. The company also added Rs 35 crore from the interest and gain on current investment tallying the overall income to Rs 2,023 crore in FY23. For the gaming platform, advertisement and business promotion expenses accounted for 66% of the overall expenditure, which surged by 61.7% to Rs 1,421 crore in FY23 from Rs 879 crore in FY22. The firm’s burn on employee benefits, legal, traveling, training, recruitment, subscription membership, and other overheads took its overall expenditure up by 43.4% to Rs 2147 crore in FY23. The 70% growth in scale and controlled cost helped the firm’s losses go down to Rs 199 crore in FY23 from Rs 282 crore in FY22. Its ROCE and EBITDA margin improved to -18% and -4.6%, respectively. On a unit level, it spent Rs 1.08 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -24% -4.6% Expense/₹ of Op Revenue ₹1.28 ₹1.08 ROCE -48% -18% Games 24×7 has raised over $107 million to date including its $75 million round led by Malabar Investment at a valuation of $2.5 billion. According to the startup data intelligence platform TheKredible, Tiger Global is the largest external stakeholder with 22.39%. In March, Games24x7’s My11Circle became the new fantasy sports official partner for IPL (Indian Premier League) for five years, outbidding its rival Dream11. Games24X7 also said that it has tripled its marketing investment this year. This will reflect in the company’s financial performance in FY25.

Dream Sports restructures business as over 100 executives exit

EntrackrEntrackr · 1d ago
Dream Sports restructures business as over 100 executives exit
Medial

Dream Sports, the parent of Dream11, has reorganised its operations following regulatory challenges in the real-money gaming (RMG) sector, leading to the exit of more than 100 executives. After the online gaming ban in August last year, Dream Sports reorganised into multiple startups including Dream11 (pivoted), FanCode, DreamSetGo, DreamCricket, Dream Play, Dream Money, and Dream Horizon. Confirming the development to Entrackr, a Dream Sports spokesperson said, “Dream11’s 700 employees were redistributed across these startups based on experience. Around 15% chose to leave for larger companies or start their own ventures, while attrition is only slightly higher than the earlier 10%.” According to Dream Sports, it currently has around 950 employees. Following the ban on real-money gaming, Dream Sports has shifted from fantasy gaming to a global sports entertainment platform, with creator-led watch-alongs, fan interactions, banter streams, and free-to-play fantasy formats. Dream11’s revenue from operations declined 15% year-on-year to Rs 6,759 crore in FY25 from Rs 7,934 crore in FY24. The firm reported a loss of Rs 479 crore in FY25, compared to a profit of Rs 1,295 crore in FY24. According to the company’s filing, costs booked against the domicile shift and directors' benefits led to the loss. The RMG ban had triggered a wave of layoffs across the sector, forcing companies to explore ad-driven and subscription-led monetisation models. The list includes Gameskraft’s 400 layoffs, A23 Rummy (Head Digital Works) cutting 500 jobs, Zupee axing 170, MPL shrinking up to 60% of its staff, and Baazi Games reducing its headcount by 200. Games24x7 reportedly laid off 70% of its workforce. Some of these companies are also facing heat from the government's financial investigation agency Enforcement Directorate (ED).

Dream11’s domicile and director benefits lead to Rs 479 Cr loss in FY25

EntrackrEntrackr · 1m ago
Dream11’s domicile and director benefits lead to Rs 479 Cr loss in FY25
Medial

Dream Sports, the parent of Dream11, saw its operating scale decline 15% in FY25 and reported a net loss of Rs 479 crore for the year ended March 2025. This appears to be a rare loss for the Mumbai-based company, which was steered by a one-time tax cost of Rs 575 crore arising from the cross-border merger of Dream Sports INC and India’s Sporta Technologies, along with Rs 771 crore cost, which were booked against directors' benefits. Dream11’s revenue from operations declined 15% year-on-year to Rs 6,759 crore in FY25 from Rs 7,934 crore in FY24, its consolidated financial statements sourced from the Registrar of Companies (RoC) show. Platform fees received from users for participating in contests, also known as Gross Gaming Revenue (GGR), remained the primary source of revenue in FY25 and stood at Rs 10,284 crore. After adjusting for promotional credits and revenue of Rs 259 crore from the sale of services and goods, the company’s net operating revenue stood at Rs 6,759 crore. The company also earned Rs 601 crore from non-operating sources, which includes interest on fixed deposits and investments, which pushed Dream11’s total income to Rs 7,374 crore in the last fiscal year. Following the ban on real-money gaming, Dream Sports has shifted from fantasy gaming to a global sports entertainment platform, with creator-led watch alongs, fan interactions, banter streams, and free-to-play fantasy formats. The company has also entered the wealth tech space with its new app, Dream Money. On the cost side, advertising and promotional expenses remained the largest cost centre, which accounted for 58% of total expenses, or Rs 3,913 crore, in the last fiscal. Employee benefit expenses emerged as another major cost, it rose over 62% to Rs 1,673 crore in FY25 from Rs 1,030 crore in FY24. Notably, the company recorded Rs 778 crore as benefits to its directors, which are likely to be the ESOP-related cost. Information technology expenses accounted for Rs 798 crore while content, processing, and other miscellaneous overheads pushed the firm’s overall expenditure up by 9% to Rs 7,123 crore in FY25 from Rs 6,562 crore in FY24. Dream11 incurred a one-time tax expense of Rs 575 crore, linked to the merger of Dream Sports Inc. with Sporta Technologies Private Limited during its shift in domicile from the US to India. The company booked this as an exceptional item. The decline in operating scale, coupled with a one-time tax expense and director benefits, drove the firm into losses with Rs 479 crore loss in FY25 from Rs 1,295 crore profit in FY24. Its ROCE and EBITDA margin worsened to -6.51% and -4.29%, respectively. It also reported EBITDA loss of Rs 290 crore during the year. On a unit level, it spent Rs 1.05 to earn a rupee in FY25. As of March 2025, Dream11’s parent had total current assets of Rs 3,729 crore, which includes Rs 1,801 crore of cash and bank balances.

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