News: Over the past two fiscal years, Gameberry, a self-funded game publishing company, has undergone significant expansion. Despite posting a 13 percent revenue growth, the company experienced a 65 percent drop in profits in FY21. This dip is for increased employee benefits and advertising costs. However, Gameberry posted a robust 21.2% growth in operating income, rising to Rs 314 million in FY22 from Rs 259 million in FY23. With 22 million monthly active users and 60,000-70,000 monthly transaction users, the company relies heavily on in-app purchases, which registered a whopping 29% growth in the fiscal year. It is interesting to note that Gemberry has benefited from non-current financial assets with its high operating income from sources outside India.
Increasing costs and employee benefits
There was a significant increase in Gambri’s expenditure in terms of employee benefits, which saw a sharp increase from Rs 22.7 crore to Rs 102.7 crore at Rs 23.3 crore. This significant increase may be related to the lack of employee share based payment in the 22 fiscal year. In addition, costs related to platform hosting, payment processing, advertising and promotion have also shown significant improvement. In conclusion, Gamberi’s total expenditure has seen a sharp increase, jumping from Rs 142 crore to Rs 278 crore in FY22.
See Gambri’s financial performance
Although GameBerry has experienced a decline in profits due to higher costs, the company’s operating income is expected to grow in fiscal 2023. This positive trend can be attributed to Gameberry’s focus on in-app purchases and expanding their user base. The company’s success extends beyond India, showing promise for the future in the gaming industry.
Frequently Asked Questions (FAQs)
Q: What contributed to the decrease in Gamberi’s profit in the 21st fiscal year despite the increase in revenue collection?
A: The decrease in Gambier’s profit can be attributed to a significant increase in employee benefits and advertising expenses during the fiscal year.
Q: Where does Gameberry get its revenue?
A: Gambri’s primary source of revenue is generated through in-app purchases made by their user base.
Q: Is Gameberry limited to India only?
A: No, Gameberry operates globally, and the majority of its operating income comes from regions outside India.