M-League, the parent company of Mobile Premier League (MPL), has achieved a significant milestone in its financial performance, reporting a positive operating cash flow of Rs 157 crore for the fiscal year ending March 2024. This achievement comes amid ongoing regulatory challenges and indicates a 22.2% growth in revenue, crossing the Rs 1,000 crore mark.
Revenue Growth
MPL’s revenue from operations rose to Rs 1,068 crore ($127.9 million) in FY24, up from Rs 873.7 crore ($104.63 million) in FY23, as revealed in the company’s consolidated financial statements filed by M-League Ltd in Singapore. Notably, 99% of this revenue was generated from online gaming, with the remaining coming from advertisements and other operating activities. When including non-operating income, MPL’s total revenue reached Rs 1,085.17 crore ($130 million).
Market Distribution
Geographically, India remains MPL’s largest market, contributing 69% of total revenue. Other markets include Europe (27.9%), the United States (2.6%), and Nigeria (0.5%). Notably, MPL reported no revenue from Singapore, which previously accounted for 3.5% of its revenue in FY23.
- India: Revenue grew by 35.2% to Rs 737.1 crore.
- Europe: Revenue increased by 11.8% to Rs 298.10 crore.
- United States: Revenue dipped 11.7% to Rs 27.81 crore.
- Nigeria: Revenue jumped to Rs 5 crore from zero the previous year.
Expense Management
On the expense side, MPL’s largest cost center was advertising and promotional expenses, which constituted 31.8% of total expenses and rose by 6.8% to Rs 442.97 crore in FY24. Following a significant reduction in workforce—350 employees were laid off in August 2023—employee benefit expenses decreased by 28% to Rs 429.53 crore. This figure includes Rs 121.4 crore in employee stock option (ESOP) costs.
Despite these efforts, the company’s overall expenditures increased by 2% to Rs 1,393.2 crore, up from Rs 1,365.7 crore in the previous fiscal year. Major expenses also included costs related to hosting and IT support services, payment gateways, and royalties.
Financial Performance Overview
Despite the reduction in cash burn, MPL reported an increase in losses by 21.2%, totaling Rs 374.9 crore ($44.9 million). This increase can be largely attributed to a fair value loss on financial instruments amounting to Rs 92.93 crore. Excluding this loss, the adjusted loss stood at Rs 282 crore.
The company’s operational efficiency is reflected in its positive operating cash flow, which improved significantly from Rs -531.8 crore in FY23 to Rs 157 crore in FY24. However, MPL’s EBITDA margin and return on capital employed (ROCE) remained negative, at -21.39% and -32.88%, respectively. On a unit basis, MPL spent Rs 1.3 to earn a rupee of operating revenue.
Challenges and Future Outlook
MPL has faced challenges due to GST regulations and other legal issues, which led to the shutdown of its web3 fantasy platform, Striker, in December. Despite these hurdles, the company continues to focus on scaling its operations and optimizing costs.
To date, MPL has raised $395 million from various investors, including Peak XV Partners, SIG Global, GV Games, RTP Global, Moore, and Beenext. Following its Series E funding round in September 2021, the company was valued at approximately $2.3 billion. As it moves forward, maintaining growth while navigating regulatory landscapes will be crucial for MPL’s sustained success.
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