Games24x7 had reported a loss of Rs 282 crore on an operating revenue of Rs 1,169 crore in FY22, filings made with the Registrar of Companies showed.
The firm’s total expenses rose 43% to Rs 2,147 crore in FY23, compared to Rs 1,497 crore a year ago. The increase came as advertising and other promotional expenses grew over 61% to Rs 1,421 crore during the year.
Games24x7 is one of the largest firms in the RMG sector, running platforms like online rummy game RummyCircle and fantasy sports platform My11Circle. It derives its income from commissions on wagers made by players on its platforms.
The RMG sector, which also includes other cash-rich startups like Dream11, MPL and Gameskraft, was hit by a 28% goods and services tax (GST) levied on the deposits made by players on these platforms from October last year. The change is set to severely impact their earnings in the fiscal year ended March 2024.
Dream11, which runs arguably the most popular cricket fantasy platform in the country, is expected to see its revenue decline 30-40% and earnings before interest, taxes, depreciation, and amortisation (Ebitda) shrink about 80% following the introduction of the higher GST, cofounder and chief executive Harsh Jain had told ET in November last year.
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In March, ET reported how RMG firms were experimenting with new models that discouraged users from frequently withdrawing their money, as they sought to minimise the impact of increased indirect taxes and boost their earnings.
