Delta Corp June quarter profit beats estimates

Indian gaming giant Delta Corp saw its June quarter net profit rise to Rs 28.6 crore, up 52 percent year-on-year, beating analysts’ expectations.

Net sales / revenue for the gaming company rose 36.7 percent to Rs 109.9 crore, up from Rs 80.4 crore in the prior year period. This was due mainly to a 49 percent rise in income from gaming operations.

Delta Corp is the only listed company in India engaged in live, electronic and online casino gaming in the country. The company owns and operates land-based and offshore casinos in Goa and Sikkim, and also owns Gauss Networks Private Limited, the operator of online poker site Adda52, amongst others.

“Upside to our expectations derived from all major reporting segments: casino gaming operations, online gaming, and hospitality with the biggest delta in absolute dollar terms coming from casino operations upside,” Grant Govertsen, managing director of Union Gaming Asia said in a note. “Simply put, demand for the company’s riverboats in Goa remains very robust and continues to make the case for the transformational land-based move.”

Govertsen said a lot of the upside in gaming activity has come because an estimated 50 percent of small casinos operating in hotels had closed down as a result of higher license fees.

“For Delta, the biggest impediment to growth in the out years will be a lack of physical space to accommodate customers given that riverboat casinos have a finite amount of space,” he said.

The Goa government has been considering legislation that would move the offshore casinos onto land into a special entertainment zone. Analysts have said the move would be transformational, allowing the development of a higher standard of IRs.

The regulation has been delayed due to ill health of the state governor, though he is back on the job and the bill may be published this session, Govertsen says.


Previous again pitching IR plans in Okinawa
Next articleMacau visitor arrivals up 9.4 pct in June

Related Articles

Delta buys 45% of Casino Royale shipbuilder

Delta Corp said it agreed to buy 45 percent of the shipbuilder of its Casino Royale vessel to provide long-term strategic benefits in terms of ship maintenance and building requirements.

Delta to focus on online biz, sees return to normal in Q1, 2021

Delta Corp, India’s largest and only listed casino operator, said it will focus on its growing online business to offset the impact of Covid-19 and says it sees a return to normality in the financial year ending March 2021.

Delta Corp reports boost in online gaming revenues

Indian gaming operator Delta Corp. reported a striking increase in online gaming revenue during the quarter ending June 30, whilst land-based revenues were completely absent.  Like many other markets, the shift online has been largely due to the coronavirus pandemic related lockdowns, which have encouraged more time spent on online play.  The company posted a […]

Delta Corp confident in weathering Covid-19 storm

Management of India-listed casino operator Delta Corp said it does not believe the Covid-19 pandemic to have any significant impact on the financial results of the group for the year ended March 31, 2020.  The company reported a total income of 191.3 crores (US$25.3 million) for the year ended March 31, 2020, down from 213.53 […]

Delta Corp initiates buy-back plan

Delta Corp. has initiated an Rs. 125 crore (US$16.7 million) stock buyback plan in an attempt to arrest the sharp decline in its share price due to the closing of its casinos in Goa and Sikkim. The casino shutdowns were a result of a directive from the Indian government and a subsequent 21-day lockdown due […]

Sikkim goes under lockdown and shuts casinos

Not only Goa, but also the state of Sikkim, the small, mountainous Indian state wedged between Nepal and Bhutan, has gone under Covid-19 lockdown, including the closure of all casinos. Sikkim Chief Minister Prem Singh Tamang announced on Monday that entry of all domestic tourists has been banned. He also stated that all educational institutions, […]

Delta Corp posts stagnant results in Q3

Indian casino operator Delta Corp reported stagnant results in the quarter ending December 31 with almost INR2.1 billion (about US$29.4 million) in net income from operations, a figure that was virtually identical to the previous year.

Delta Corp to open a casino in Kathmandu

India-listed casino operator, Delta Corp has announced it has been issued a license for operating a casino in Nepal, with the opening of the casino to happen “soon”. According to a filing to the National Stock Exchange of India, Delta Corp said the casino will be located at the five-star Marriot Hotel in Kathmandu, Nepal.  […]