7Seas Entertainment Ltd Management Discussions

Overview

7Seas Entertainment Ltd (7Seas) is an ISO-certified Independent Games Development Company. We are a leading developer and publisher of digital gaming entertainment products for consumers/gamers around the globe. We develop and publish Game IPs in all genres for different age groups, principally through 7Seas.Our products are designed for mobile gaming (smartphones and tablets) and PCs (Online Gaming) systems.

During fiscal year 2025, we released new gaming content for several game categories. Our Game Roller Coaster Simulator HD won the FICCI BAF 2024 Award held in Mumbai, India. Our cricket game titled " World Cricket Champions League" performed well throughout the year.

We expect our new updated version of these games will perform well in the coming years. We will also continue to invest in more new gaming opportunities that we believe will enhance and scale our business and have the potential to drive growth over the long-term.

In this financial year 7Seas developed & released games 5 Unique Mobile Games and 100+ casual online games. 7Seas is focusing on Free to Play Casual, Arcade, Racing, Shooting, Action, Puzzle, and Simulation Games.

7Seas developed first of its kind Short Gaming News App – Gamer Shorts. Gamer Shorts is a unique gaming app for connecting gaming eco system of all publishers/gamers/Companies etc., be updated with the Gaming Apps and Information.

At, 7Seas, it is an ongoing process to produce good quality of games for all the genres complete End to End Game development methodology process is implemented. 7Seas adopts multifaceted revenue strategy. Its suite of gaming content allows gamers to easily play the games.

Industry Structure, Development and Outlook:

The gaming industry has come a long way since its inception, with new advancements in technology, graphics, and gameplay leading to an ever-growing fan base and market.

Global Gaming Market Overview: According to Statista:

• Revenue in the Games market worldwide is forecasted to reach US$455.30bn in 2025.

• The revenue is anticipated to demonstrate an annual growth rate (CAGR 2025-2029) of 7.93%, leading to an estimated market volume of US$666.70bn by 2029.

• When compared globally, the majority of revenue will be generated in China (US$128.90bn in 2025).

• In the Games market, the number of users is projected to reach 3.0bn users by 2029.

• User penetration is set to be 33.3% in 2025 and is projected to reach 37.5% by 2029.

• The average revenue per user (ARPU) is forecasted to be US$816.30.

• Global gaming media consumption is surging, with worldwide gamers engaging more with interactive content across various platforms and genres.

As per Newzoos report - The global games market will generate $187.7 billion in 2025. At present, gaming is at a major inflection point. Gaming will captivate an anticipated 3.4 billion enthusiasts this year, with its influence extending throughout the expansive media and entertainment landscape. The market is growing and there are opportunities out there for every scale.

The more the gaming market grows, the more ways there are for the different players in the ecosystem to boost their revenues from it. Even free-to-play games are now generating massive revenues. In fact, mobile games are one of the most important revenue sources for the market, as stated by Newzoos reports that point out that there will be a spend of $200 billion on in-game purchases by 2025.

A remarkable 79% of the online population engages with games in one way or another. All types of game-related engagement tend to increase with each younger generation (Newzoo). 42% of Gen Alpha engages with games across all dimensions, including playing, viewing, and other forms such as socialization, podcasts, in-person events. This level and breadth of engagement among youngsters signals that gaming is becoming more than just a pastime.

Trend is Mobile Gaming: The trend that is evolving the most is mobile gaming. It has become increasingly popular in recent years, and this is expected to continue in 2025. With the rise of 5G technology, mobile games will become even more accessible and offer more immersive gameplay experiences. Mobile gaming is also becoming more mainstream, with more and more people of all ages and backgrounds playing games on their phones.

As of July 2025, Indias gaming market was valued at around $3.1 billion and had 442 million gamers, making it the worlds second-largest gaming market after China. The industry is expected to grow to $12.359 billion by 2032, with a compound annual growth rate (CAGR) of 16.20% from 2025–2032.

The online gaming industry witnessed tremendous growth during the period of coronavirus outbreak. Indias young online gaming business saw extraordinary growth, propelling it into the worlds top five mobile gaming markets. The rising millennials and Gen Z population of the Country brought the online gaming world to life. India is poised to serve as a lucrative avenue for the gaming industry. Revenues come from free-to-play and freemium games, which can be downloaded and played for free but allow gamers to spend money in the game to enhance the experience.

• Large youth population: India has one of the worlds largest youth populations.

• Expanding IT infrastructure: The growing use of smartphones and high-speed internet is fueling the growth of IT infrastructure

Opportunities and Threats:

Though the overall scenario for the gaming companies is extremely competitive, there are some niche areas where there are many opportunities for Global Growth. The management is exploring these areas to consider entering new specific multiplatform including AI in Gaming, Multi languages areas for mobile platform and develop expertise in such new Gaming Genres.

During the year under review, the Company has recorded an income of Rs. 1179.12 Lakhs and profit before tax of Rs. 103.19 Lakhs as against the income of Rs. 555.92 Lakhs and Profit before tax of Rs. 53.27 Lakhs in the previous Financial Year 2024-25.

[Pursuant to Schedule V (B) to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended]

The company is engaged in the business of Software Games Development, which as per Accounting Standard is considered the only reportable business.

Gaming Industry is more focused on new technologies. The performance of the Company has dropped in comparison to previous financial years. Your company will improve its performance by focusing on new gaming technologies platforms.

The Company needs to promote the Games Portfolio to reach Global Gamers. It also has to focus on developing games for new multiplatform technologies in Mobile Gaming Industry, the company would need access to Funds.

The Company maintains a system of well-established policies and procedures for internal control of operations and activities, and these are continually reviewed for effectiveness.

The business risks and its control procedures are reviewed frequently. Systems audit is also conducted regularly to review the systems with respect to Security and its Adequacy. Reports are prepared and circulated to Senior Management and action taken to strengthen controls where necessary.

Your company continues to have cordial relations with its employees. During the year the company has employed 30 members in its company and has taken some HR initiatives to train and develop talent pool. In order to improve the performance of management and to scale up the business operations, the company planned to recruit experienced personnel at various levels and technologies apart from strengthening other departments with competent people.

The Company has not carried out any treatment different from that prescribed in Accounting Standards.