Gameskraft Reports 24.8% Increase in Operating Revenue for FY23
Online gaming firm Gameskraft recently announced a significant surge in its annual financial results for the fiscal year 2022-23. The company’s operational revenue experienced a 24.8% increase, reaching Rs 2,622 crores compared to the previous period’s Rs 2,133 crores.
Despite the increased expenditures of 45.7% due to legal-cum-professional charges, domain hosting, gateway commissions, and other expenses, Gameskraft managed to achieve a remarkable 14.2% increase in profits, amounting to Rs 1,062 crores. The financial report also revealed that Gameskraft made unrealized gains of Rs 69.6 crores by selling off its mutual fund holdings.
The largest portion of the company’s expenses went towards advertisements and promotions, accounting for 47% of the overall expenditure. Based in Bengaluru, the startup’s expense-to-revenue ratio also experienced a slight increase, rising from 42 paise spent to earn a rupee in FY22 to 49 paise in FY23.
NEW: Gameskraft numbers are incredible. The company posted Rs 2,662 Cr in revenue and Rs 1062 Cr profit in FY23. It operates a slew of apps including Rummy Culture, Playship, Pocket 52, RummyPrime, Ludo Culture, and Rummy Time. A 🧵 on its FY23 numbers…
— jaivardhan (@jaivardhan88) December 5, 2023
Challenging Times Ahead for Gameskraft and the RMG Industry
Gameskraft operates multiple real-money gaming (RMG) platforms, including Rummy Culture, Playship, Pocket 52, Rummy Prime, Ludo Culture, and Rummy Time. However, the recent implementation of a 28% GST on online gaming activities has negatively impacted revenues for not only Gameskraft but also the entire RMG industry.
Despite the impressive financial results, Gameskraft faces challenging times ahead as it deals with GST demand notices. The Directorate General of GST Intelligence (DGGI) has issued the company a notice amounting to Rs 21,000 crore, with the matter scheduled to be heard in the Supreme Court on December 15.
Unfortunately, Gameskraft is not alone in receiving GST notices, as other industry players such as Dream11 and Mobile Premier League (MPL) face similar issues. The increased GST burden has also led many companies to restructure and lay off employees. Sadly, smaller firms unable to weather the latest GST amendments have either temporarily suspended operations or shut down completely.
Yet, amidst the turmoil, Gameskraft remains committed to its vision of bringing quality esports entertainment to India. The company has a strong focus on product innovation as it continues to make progress that will enable it to lead the industry in the years ahead. Despite setbacks, Gameskraft is confident about its future and remains determined to navigate this difficult period successfully. We remain optimistic about our ability to use innovative strategies and solutions to overcome the current challenges we face. Throughout this process, we strive to develop new products and services that will help us meet the demand for quality esports experiences in India. By staying true to our values and mission, we are confident that Gameskraft can emerge from this turbulent period stronger than ever before.
