Good morning, everyone, and welcome to Nazara Technologies Limited Q1 FY '27 post-results earnings call. The call will start with brief management remarks on the earnings performance, followed by a Q&A session.

Nazara management will be represented by Nitish Mittersain, MD and CEO, Nazara Technologies Limited; Rohit Sharma, Executive Director, Nazara Technologies Limited; Rakesh Shah, CFO, Nazara Technologies Limited; Anupriya Sinha Das, Head of Corporate Development, Nazara Technologies Limited; Shreyas Menon, Whole-time Director, Smaaash; Terry Lee, CEO, Fusebox Games; Susan Planck, COO, Curve Games; Maxime Loppin?] , CPO, Blowfish Games; Manish Agarwal, Whole-time Director, Paper Boat Apps Private Limited; Geoff Adams, Co-Founder and CEO, WildWorks Inc.; Mayank Kumar, CEO, Absolute Sports Private Limited; Akshat Rathee, Founder, NODWIN Gaming Private Limited; Senthil Govindan, CEO, Datawrkz Business Solutions Private Limited; Chris Jones, CEO, Space and Time.

Over to you, sir.

Hello. Hi, everyone.

Good morning, everyone, and thank you for joining us this morning. This is Nitish.

Q1 FY '27 marks a significant step forward in Nazara's evolution into a global gaming operating platform. Yesterday, we announced our Q1 results, the appointment of Raymond Stauffer as our new CEO effective 1st September, subject to relevant regulatory approvals, and an acceleration of the previously announced Bluehole and Bestplay transaction to acquire 100% ownership for a fixed, all-cash consideration of USD 303 million.

Consolidated revenue came in at INR 429 crores, and EBITDA was INR 46 crores. We reported a PAT loss of INR 82 crores, largely attributable to the share of loss from associates and impairment loss.

Excluding the impact of NODWIN's deconsolidation, comparable consolidated revenue grew approximately 9% year-on-year. Our gaming revenue increased 14% year-on-year to INR 275 crores with an EBITDA margin of 19.5%, and all our gaming businesses remained EBITDA positive and showing positive growth.

Our shared capabilities across UA, data, product, and growth are translating into stronger performance across the gaming portfolio. A long-standing concern on Kiddopia stagnation has changed in the last quarters, and Kiddopia revenues grew 19% year-on-year as a user acquisition scaled behind improving unit economics.

Fusebox, which runs the popular game Love Island, increased 12% year-on-year to INR 52 crores, whereas our Kids IP, Animal Jam—revenue also grow 11% year-on-year. The board, on the recommendation of its investment committee, has approved an amendment to the previously announced transaction structure to acquire 100% of Bluehole and Bestplay for a fixed cash consideration of USD 303 million.

Under this amended structure, USD 89 million will be paid at closing, with the remaining USD 214 million payable in agreed tranches by 1st April '27. This new structure provides certainty of ownership and acquisition price, full economics upon closing, single-owner governance, immediate operating integration, greater strategic flexibility, and access to the cash generated by the business.

For reference, the Bluehole and Bestplay business reported INR 518 crores of revenue and INR 55 crores of EBITDA in Q1 FY '27, and subject to the final closing, we are expecting to start consolidating this entire business from Q2 of FY '27. We have also appointed Bluehole CEO and Founder Raymond Stauffer as CEO of Nazara Technologies effective 1st September '26.

Raymond brings a founder's mindset and a proven record, especially on AI-enabled development, operating disciplines, and capital-efficient growth, and I think he and his team will be able to significantly boost and help all the other studios within the Nazara umbrella. As Founder and Managing Director, I will continue to shape Nazara's long-term strategy, portfolio direction, and key relationships, working closely with Raymond and the board.

Nazara enters its next phase with greater scale, stronger leadership, and significantly deeper operating capability. With that, I'll hand over to Anupriya to discuss segmental performance.

Anupriya, over to you.

Thank you, Nitish. Good morning, everyone.

I'll cover the segmental performance. In Q1 FY '27, our gaming segment revenue grew by 14% year-on-year to INR 275 crores, and EBITDA reached INR 54 crores, resulting in an EBITDA margin of 19.5%.

Within mobile gaming, Bluehole and Bestplay, which will be consolidated from Q2 FY '27, delivered 54% revenue growth year-on-year with gains reinvested into user acquisition. EBITDA held flat as UA spend rose from 78% to 85% of revenue, though revenue net of UA spend still increased from INR 73 crores to INR 80 crores.

As Nitish mentioned, Kiddopia revenue grew 19% year-on-year in Q1 FY '27 with higher UA spend deployed against improving unit economics. The 24-month LTV/CAC continues to trend upward, though the step-up in user acquisition moderated the near-term EBITDA.

Animal Jam revenue increased by 11% year-on-year supported by a consistent content cadence and continued growth investment. Fusebox, the developer and publisher of Love Island game, grew by 12% year-on-year as the studio scaled Love Island, which ranked number one in free apps and number five in top grossing apps in the US, while investing in Big Brother's growth and the development of the new game, Traitors.

With Q1 FY '27 revenue of INR 53 crores and EBITDA of INR 14 crores and a 27% EBITDA margin, PC and console publishing remains strongly profitable while funding the release slate. Transaction sales for Human: Fall Flat and For The King II both increased year-on-year, while more than 60% of the development investment during the quarter was allocated to new signings.

The new releases will begin from Q2 FY '27. Margins were lower relative to Q1 FY '26, which had benefited from the first-party studio release of Badlands Crew last year.

Offline gaming delivered healthy profitability at a 33% EBITDA margin with Q1 FY '27 revenue of INR 34 crores and EBITDA of INR 11 crores. Funky Monkey revenue grew 58% year-on-year driven by both same-store sales growth and store expansion, while the Smaaash 2.0 reimagined format is in full flow.

Within our other businesses, Datawrkz delivered Q1 FY '27 revenue of INR 126 crores and EBITDA of INR 3 crores supported by continued operating discipline. Space and Time grew EBITDA year-on-year, demonstrating margin resilience though a softer demand environment.

Adtech business's next focus is on scaling higher-margin products business, such as VISIBLE, and expanding into newer markets. Absolute Sports posted Q1 FY '27 revenue of INR 28 crores and EBITDA of INR 1 crore.

Sportskeeda delivered positive EBITDA at a lower cost base with the full effects of cost actions expected from Q2, while Pro Football Network delivered its best Q1 yet with a 19% EBITDA margin versus breakeven in Q1 FY '26. NODWIN's Q1, traditionally its slowest quarter, saw stable revenue growth with losses substantially lower year-on-year.

Comic Con Mumbai was a sold-out show, and the IP is expanding to 14 events in India this year alongside the registration of Comic Con World as a global IP. NODWIN is targeting organic growth of 30%+ for FY '27 and is progressing towards its IPO readiness.

With this, I conclude my remarks, and we will open the call for Q&A. Thank you.

Thanks for the opportunity. Great set of numbers.

My question is to Raymond, if he's in the call. Raymond, can you just briefly talk about your journey regarding Bluehole, how did you scale up, and can you also briefly touch upon your background was from Google where you were leading some Trust and that's proper products, but how did this gaming came into your thing?

Also, when I see your numbers in the seven years, you have scaled beautifully. Were there any inorganic acquisitions that you have gone through, or it was all organic?

That is my first high-level question to Raymond. Hello?

Is Raymond on the call?

Hi, this is Nitish. Raymond is not on the call because he had a flight.

He was on a flight during the timing of this call. He is represented by Maxime, who's going to take over as CEO of Bluehole and Bestplay once Raymond moves to the Nazara side.

I think Maxime can answer some of this on behalf of Raymond.

Yeah. Network.

Yeah. ]:

Okay. Hi, everyone.

Can you hear me? I'm Maxime.

Yes. Yes, we can hear you.

]:

Okay. I can't talk too much about Raymond's experience.

He will talk to you about it more in depth. What I know is that I've been working with Raymond for a while now, and he's an absolutely extraordinary CEO.

Now, about the second question, no, it was organic growth. The way we spend money here at Bluehole is that it's based on the profitability of the campaigns, the UA, and we have released several new games, new features for the games, for Bestplay, and we've seen a great return on investment on many different campaigns.

That's why we decided to increase the spend and, therefore, the revenues. Most of the increase in revenues is driven by paid acquisition, actually.

We did this in order to increase the revenue baseline and the user base basically, and that would give us full flexibility in the future to adjust our revenues or EBITDA. No, it was driven by paid acquisition.

Okay. That sounds good.

Secondly, this question is for Nitish. Basically, we have changed the deal that we will go in all-cashing deal.

That is basically a liquidity exit to all the Bluehole and Bestplay investors. Then we are also appointing Raymond as a CEO.

Then what would be their skin in the game in this for a long-term shareholder perspective? Also, day after tomorrow, we are having a board meeting for a preferential raise.

Is it for them? Can you just throw some light there?

Right. I obviously cannot comment on the fundraise at a preferential issue before the board approved it.

You can be rest assured that we are working on structures that will incentivize the management team, and including Raymond, as CEO of Nazara Group. Over the next few days, we will communicate more on that.

Okay. Okay.

Thanks, all the best, man.

Thank you.

Thanks for providing me the opportunity. I had a couple of questions.

First one was on Curve Games. If I remember correctly, in the last call, you had mentioned that we will have six new releases this year.

Where does we stand today, and in terms of margin, should we expect margin to stay at this level throughout the investment phase that we are going on the Curve Games? That's my first question.

Samarth, let me first answer that and then get Susan to deep dive into it. I think fundamentally what we've done over the last few quarters since we acquired the Curve is to really push and encourage the team to start signing up new titles.

Curve has been well known in the indie space for being able to select and bring excellent, successful titles to the market, but over the last few years, their ability to invest into signing new titles was significantly depressed, which was kind of constraining them. I think we've kind of unleashed them from that constraint, and I think they've done a very good job in terms of building a strong pipeline.

Susan, if you may come in and talk a bit more specifics around what's happening and what to expect in terms of the title roadmap, etc., it'll be helpful.

Thanks, Nitish. Can you hear me?

Yes.

Hi, there. Susan Planck, Curve Games.

Yes, so as Nitish said, we have been investing in new titles under Nazara since acquisition last year. Our new development titles generally have a development cycle of 12 to 18 months, which has meant there has been some delay in reaping the benefits of the new signings under Nazara.

However, we are looking at releases upcoming within the next three quarters of FY '27, starting actually with Sovereign Tower. A title we're really excited about that's actually coming out later this week.

We've then got Dragon Shelter releasing in September. Then a number of other new titles that we're incredibly excited about that are yet to be announced coming before the end of the year.

With respect to the margin, yes, our 27% EBITDA margin that we saw in Q1 of FY '27 is lower than our expectation for the full year, and indeed the margin in excess of 40% that we delivered last financial year. The new titles that we have signed will contribute significantly to increasing that margin in the subsequent quarters of the year.

Hi, this is Rohit. If I may also add, in terms of the on your question to the margins, our own first-party studio, IronOak, which makes the game For The King II has been seeing in the last couple of months a good upside on its numbers, and this will continue.

Therefore, as we go along, we'll see better margins in the business. IronOak is also now working on some new titles, which again because will be first-party titles, will give us a better margin as we go along in the next couple of quarters.

Understood. That was really elaborate and very helpful.

Now my second question is on the offline gaming. What is the total capital commitment that we will have to the offline business over, let's say, next couple of years?

Just extending on to that, which quarter the Smaaash 2.0 will actually open, if you can help me with those details?

This is Nitish again. Right now, we're doing two things on the offline gaming.

One is, like you said, we are working on establishing the Smaaash 2.0 product-market fit, and the first reinvention is going to happen in the Mumbai, Lower Parel, long-standing Smaaash, where we've already started with the design and backend product and technology. We're going to start implementing soon.

I think Q4 of this year, FY '27, Jan to March 2027, is when we will look to launch it at this point of time. In terms of Funky Monkeys, they continue to expand their centers quite successfully, and we will continue to encourage them to do that.

They are funding it through internal approvals as well as some debt and some capital infusion by Nazara. Right now, our overall commitment across these two businesses, including some stake increase in Funky Monkeys, is approximately 50-odd crores.

Beyond that, we've not decided any specific capital allocation, especially till we see the Smaaash 2.0 product-market fit.

Thank you, Nitish, for that information. Very helpful.

Now my last question is on NODWIN. In the last quarter, we also spoke about raising anywhere between, let's say, $100 million to $200 million kind of a capital, and NODWIN is also preparing for IPO.

Where do we stand in that process? Does the secondary sale form part of how the Bluehole consideration will get funded along with the preferential allotment that we talked about?

We have Akshat, the founder and CEO of NODWIN. It'll be best for him to answer this.

I'll answer the first part, Nitish. The second part might be more appropriate for you to take.

Look, NODWIN's been able to go ahead and do a significant turnaround. Our shows are now selling out across the world.

We are expanding some of our Comic-Con, our premiere IP, from 11 shows that we did last year to 14 domestically and two to three international ones also. We've had a bumper year on our esports IPs, and with the clarity of esports in India being a special category that has been made through the PROGA Act, we are looking at significant tailwinds as part of our IPO process.

As when you go out in the market and all of you are analysts, we've been talking to some of you, and we'll continue to go ahead and talk to some of you to go ahead and look at some guidances. The world is a little crazy place right now, as you can understand, both geopolitically and figuratively where we are.

Our process continues. We have very strong traction that is coming in for people who have interest in pre-IPO versus normal rounds, funding rounds primary, and then it is over to the shareholders soon that we want to go ahead and have this conversation of where we'll take the company forward in all.

I think we have the utmost of support from Nazara and its management and Nitish specifically to go ahead and chart our own path.

Can you just repeat the second question, please?

My question was that the NODWIN secondary sale, would that be part of how the Bluehole consideration gets funded along with the primary raise that we might do?

Bluehole consideration, we have multiple options. One is that Bluehole already has a certain amount of cash on its balance sheet post our acquisition.

I believe it's about give or take around $20 million that we will have access to. There will be additional cash flows generated by Nazara and Bluehole up to that period, which will be leveraged.

There could be some component of debt that we would take. There would definitely be some equity, and there could be stake sales.

I think we have multiple options that we have factored in to conclude that transaction.

Understood, Nitish. That was really helpful.

Thanks for providing the opportunity, and I will join

the queue.

Hi, good morning. Thanks for my question.

I have a couple of questions regarding margins. We see that EBITDA margins declined meaningfully this quarter.

This is on the back of higher UA expenses. Should we expect a relatively sharp normalization over the next few quarters, or the recovery is likely to be gradual?

That is one. Regarding Bluehole margins as well, we see Bluehole margins in Q1 is around 11% as compared to 17% in the corresponding period last year.

What are the key factors behind the decline?

Yeah. I think I'll answer for both the businesses, or all the gaming businesses.

I think the good news is that this is a good reason for the EBITDA decline, which means that while maintaining the guardrails of the LTV/CAC, right, the revenue we want to make versus the cost we want to spend on user acquisition, while maintaining strong guardrails on that, we are seeing the ability, through enhanced AI implementations, data analytics, and user acquisition capabilities, to scale up. We are basically scaling the user acquisition in a very profitable manner.

If we continue to see that, we will continue to drive with that. We're not keeping any caps to it.

I think the way to think about it is if you are able to see tangible growth on revenue side, we are not driving it at a cost of margins. It's just that the margins are deferred because all the user acquisition costs is being absorbed upfront.

Eventually, this will, of course, normalize into much higher EBITDA margins being reported.

Okay. Just one more bookkeeping question.

How do we see the quarterly D&A charges going forward?

Quarterly which charges?

Depreciation, amortization charges going forward.

I think again we amortize the intangibles that we take on book for the acquisitions, and currently outside of Bluehole, they are broadly steady-state what we've been reporting and will continue broadly at the same level. Bluehole will obviously add its own amortization, which I don't have a specific number right now, but that can be easily calculated or we can share it offline.

Sure. Just if I can pitch in last question.

Out of the two $214 million transaction which we are expecting to be completed by April 1st, 2027, do we have the breakup of 214 million as in by which timelines? Yeah.

Anupriya, can you share that, please?

Sure. Out of the 214 that we will acquire, the consideration which is due in 90 days from now onwards is roughly around 75 million, and a total of 131 million beyond that, which is around 35 million in December and the subsequent last amount before 1st of April 2027.

Thanks. That's helpful.

All the best.

Thank you.

Thanks for the opportunity. Sir, my question is with respect to the change in the mode of consideration with respect to the payouts relating to the Bluehole acquisition.

In the earlier version, the interests of the shareholders were pretty much well aligned given the fact that the payouts were staggered. Any which ways, in the earlier scheme of things, 100% consolidation was to happen from day one.

Although there was some bit of valuation uncertainty which was there in the earlier version, apart from that, which gets eliminated now in the new version given the fact that you have a fixed amount that you need to pay over a fixed time period. When it comes to the payouts, obviously that was spread out over three years, and now by April '27, you have to make the balance payment of $214 million, which might lead to some kind of dilution, right?

We are looking out for some pref, and you also mentioned that we'll take some debt. Any specific reason to upfront the payments, maybe take debt, dilute, rather than wait it out for three periods, because consolidation anyway which ways was to happen from day one without any minority interest accrual?

Yeah. I think there were multiple considerations here.

One is obviously the trajectory of Bluehole and Bestplay made the investment committee that we have formed feel that the payouts eventually may turn out to be much larger because they were all performance-based payouts, with annual payouts which could go up to 180% of the committed payouts. I think that was one consideration on what the payouts can be.

I think the second was, since we thought that Raymond was really a good fit to come in as overall CEO, I think having continued performance metrics for a specific business would cause some level of conflict and disalignment, which we wanted to avoid. I think those were the two key reasons besides a few others.

In terms of your consolidation question, while we were going to, as per accounting standards, consolidate, there would still be 50% leakage of the cash generated by Bluehole and Bestplay back to the founders, which in this case will now completely accrue to us. I think that is one advantage that we have.

Lastly, in terms of how we intend to finance, I think again our investment committee has laid out a complete plan of action, which I will not be able to share right away, but there's a thought-through plan on how to execute this transaction as well as how to align Raymond and his team on the overall success of Nazara versus just Bluehole or Bestplay on a standalone basis.

Sure. Sir, the second question is with respect to the tax notices that some of our real money gaming subsidiaries had received in the past.

I think Supreme Court has upheld that these are legitimate notices. I understand that we have fully written down our value of investments in PokerBaazi, but given the fact that we had some kind of ownership in these companies, will any kind of tax liability accrue to us is what I just wanted to know.

No, I think our exposure is limited to the extent of our investments in these companies. From a conservative approach, we have written them out completely.

Got sir. Sir, one last question from my side.

The share of loss of associates in this quarter was at about 62 crores. If I look at the performance of NODWIN, it was relatively steady on YoY basis, but I think the share of losses have magnified.

Is there anything specific one-off in this quarter with respect to these losses?

Most of the impairment and share of losses you're seeing are write-off on the remnant values related to the Moonshine transaction.

Sorry, relating to the?

The Moonshine investment.

Okay.

It's not related to NODWIN per se, but related to the Moonshine, because earlier we had written out about 90% of this, but there was some carrying value. After the recent judgments, we've written it out completely.

Got sir. Understood.

Thank you. Thank you so much.

Yeah. Hi.

Thanks for the opportunity. How the day-to-day responsibility, Nitish, changes for you now with a CEO change that has happened, where most of your energy will be devoted incrementally?

I think we could start with that, then I have some more questions.

Sure. I think Rahul, we will go back to how we operated with the CEO for 7 years from 2015 to 2022.

As joint MD, I was more involved in the strategy, vision, M&A, and long-term relationships for the company and establishing the brand on a global stage. I think a lot of my energies will go into that, along with a lens on what the latest on technologies, etc., which are very fast-moving now in our industry, to make sure that we are on top of it.

The CEO Raymond will be completely responsible for the day-to-day operations of the entire group and will be fully empowered to execute appropriately.

Right. Secondly, from a couple of business side question, if there could be more color in terms of how we are seeing potential for Fusebox business for this fiscal, and anything in terms of recovery that we are seeing on the Sportskeeda side, any inputs on that?

Yeah. On the Fusebox side, their existing core game, which drives most of the revenues, Love Island, continues to do well.

They've, in recent times, worked a lot on the product side and all, which I think will continue to deliver fairly good results for them. The big step change for Fusebox is going to happen through two things: one is the scale-up of their Big Brother game, which is already live, but it takes a few quarters for it to assimilate enough content to be able to scale, and I believe we are reaching that threshold now, we should start seeing a significant scale-up on Big Brother.

Also very exciting is The Traitors game, which they have global rights to.

Just to understand this aspect slightly better, is it safer to assume that Fusebox can continue a very high 20%+ type of a growth with this event expected to play out anytime soon?

Yeah. I'm quite optimistic about the prospects.

Like I said, their base game continues to perform well. Most of the growth you're seeing is right now only from the base game.

They have two games launching which have the potential to become as big or bigger than the base game. I think, executed correctly, Fusebox should have significant runway not only for this year, but in the years to come as well.

On Sportskeeda side?

Yeah. Sportskeeda has not seen that kind of recovery, but I think I would really feel that they've hit their bottom, and we are starting to see margins and all improve.

Is Mayank on the call from Sportskeeda?

Nitish. I'm here.

Mayank, why don't you give a little deeper view?

Yeah. With Sportskeeda, the three things that we're focusing on: first is on the revenue front.

We understand that the challenges with Google remain. We are diversifying our traffic sources and the revenue sources by opening up new distribution channels.

Already seen some results of it on Q1, and this will only go up in the subsequent quarters with the US sports season kicking in. Secondly, PFN, Pro Football Network, in that business, we are also investing in building the tool side of the business, which will also work more independently from the ups and downs that we see on Google.

We are investing in that side of the business as well. That has already, again, shown some results with more to come.

Lastly, obviously, is cost optimization, something that we had been working on in the last financial as well. That exercise continues, and we are already working with a very lean setup trying to maximize ROI for the business.

Mayank, just to understand, now the revenues run rate have come closer to our operating expenses, and this expenses have stayed stable for last two, three quarters. Do you see a further risk of revenue deceleration while cost stabilize around here till the time you revive revenues?

Is that a possibility, or you think we are kind of rock bottom and should see revenue momentum sequentially from this point?

The numbers that we've seen in Q1, that's in line with what we had set as internal expectations, and the revenue will only go up in Q2 and more so in Q3 and Q4, which are the months when US sports season is most active. NFL, NBA, and all these sports kick in during that period.

At that point of time, we'll see Pro Football Network, Sportskeeda, all the websites kicking in at maximum potential.

Got it. Lastly from my side, on the adtech side of the business, we have seen a pretty strong momentum from a revenue point of view, but from a EBITDA perspective, it's not done pretty well.

Is it more like some bit of COE or bit cross-leverage of this business into different business unit has been playing out, or this mostly towards its own business and nothing to do with user acquisition on the other businesses within the company? Yeah.

Rohit, why don't you take that?

Sure. I think if Senthil is there, he can also add.

I think there are mainly two or three things. Obviously, we are focusing more on our technology products like VISIBLE, which are getting very good traction in the market.

Right now, we are in the phase we are investing in the sales and the product. We will see these margins getting better as we go along.

Also on the Space and Time side, if you see, there is growth happening. Some of our one or two large margin clients have kind of shut down their budget for the last couple of months, but they will be back soon.

These two factors will change, and our margins will become better. Even Senthil, who has now moved to UK, is also hiring and has hired more kind of sales people, and we will see much better profit margins in our adtech businesses, especially for, as I said, our tech-led product called VISIBLE, which is a DSP for mid-sized businesses and is getting very good traction in the Western markets.

Senthil, if you would like to add something here, please go ahead.

Thanks, Rohit. Agree with pretty much everything that Rohit said.

Just to also give a view, the growth in revenue in the adtech business is not always going to directly correspond to that much increase in the EBITDA because there is some amount of pass-through revenue also that is on the books, which represents anywhere between 60% to 80% closer to 80% of the revenue top line that is reported. Right?

That is one thing to keep in mind. The second thing, as Rohit said and I want to reiterate, there is growth in the product-related business, which has more of a standard product profile where you have fixed costs where you have invested upfront, but then the growth in revenue or least the net revenue after the pass-through is significantly detached from any growth in the fixed cost, right?

The variable cost that you have to take on is relatively limited. We're very excited about that, and the growth that we're seeing in the markets after having higher headcount for sales and continuing down that path.

Got it. Thank you, Senthil and Rohit.

That's it from my side.

Hello, sir. My first question is regarding Bluehole.

What are the sustainable EBITDA margins there, and how have we done in Q4 of FY '26 in terms of, say, revenue, EBITDA, and margin profile? Yeah.

Maxime, can you take that, please? ]:

Yes. The reason for the increase in revenues and the flat EBITDA is that we see some great profitability on some new games, new features for the games and for Bestplay, we decided to increase the spend to capitalize on the great performance in order to increase the revenue baseline and the user base, and while keeping the EBITDA flat.

That in the future, we have full flexibility to adjust the EBITDA in case we want to, thanks to a bigger user base and a higher revenue baseline.

What are the sustainable margins, and what were the margins and EBITDA number last quarter? ]:

The EBITDA margins in Q1 last year was 17.6%, and now it is around the 11%.

For the year, how do we look at Bluehole, in terms of margin profile? ]: Yeah.

Yes,

the year is looking good so far. It will depend a lot on the opportunities that we see with the new games, on the features that we launch for the games and for Bestplay.

The good thing is that now that we have a really high revenue baseline, we have the full flexibility to adjust the EBITDA accordingly. We are not sure yet in the beginning of the year how we're going to adjust this, but yes, we have full flexibility.

The goal effectively, while increasing the business, the revenue at the moment is that in the future, if we want to, we can increase the EBITDA margins whenever we think it's the right moment.

Okay. If you're spending on, say, user acquisition, then what kind of growth are we looking in terms of revenue for the full year?

]:

Yes. Again, we are not exactly sure.

We have several games in the pipeline. It will depend a lot on the performance of the games, on the improvements that we bring to the games and to Bestplay.

We can't confirm that what is going to be the trend for each quarter. It will depend a lot on the performance of the games, on the seasonality.

Yes, we are looking for higher revenues, but then we can definitely play with the EBITDA in the future to increase the margins.

Okay. At Nazara level, do we want to give any guidance in terms of revenue, EBITDA, or margin?

Not at this point of time.

Sure. Thank you so much, and all the best.

Hi, thanks for the opportunity. My question is in relation to Curve Games and the launches of Badlands and Dragon Shelter.

I believe you've had a demo launch for Dragon Shelter and a full-scale launch for Badlands. I was just wondering, based on the Steam reviews, it looks like it's doing well.

If you could comment on either the economics or what kind of copies we've sold so far?

Susan, can you take that?

Hi, sure. The Badlands Crew released Q1 FY '26.

It was well received review-wise, major first-party launch for us. We've currently sold around 50,000 to 60,000 copies, in line with expectations.

For Dragon Shelter, that's actually being released in September. We've had the demo go live.

We've had good response to that. Actually, our wish lists for the title, which is one of the main metrics that we look at from a Steam perspective, has exceeded our expectations and currently sits at around 130,000 wish lists, which should mean that we're on track to deliver expected revenues for the year.

Susan, hi, Rohit here. Maybe you should also talk about the response that you're getting for Sovereign Tower.

Absolutely. Sovereign Tower was announced earlier in the year.

Again, wish lists are exceeding expectations currently, and followers were also getting good traction across the other social media platforms. At the moment, we are in line to exceed the expected revenue for August month based on the metrics we've seen so far.

Right, Susan. Thank you.

That's helpful. Just a quick follow-up over there.

When you talk about these new games, could you possibly quantify if you're looking at in-game transactions going forward like you've had for HFF? If you could put these games in perspective of HFF so we could understand the size of these games, I think that'd be really helpful.

Sure. Oh, apologies.

Susan, yeah, go on.

Yeah. In terms of a comparison to Human: Fall Flat, obviously, we have got, what, 60 million units shifted on Human: Fall Flat.

Whilst we're excited about the upcoming releases, we wouldn't be forecasting results to be anywhere in line with the breakout success we've seen with Human: Fall Flat. Generally in terms of the two releases we've got coming up, at the moment, we don't have any in-app purchases forecast or planned.

The revenues will come from set unit sales of that product at this point in time.

Great. Thanks, Susan.

That's very helpful.

No problem.

Can we go to the next question? Oh,

All right. Sure.

Thank you, everyone, for joining us, and we hope you have a good day ahead of you. Thank you.

Bye.

Thank you. Bye.