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 27.2 percent increase in revenue from its online skill games business in the quarter ending June 30, reaching 45.3 crores.
“The online gaming segment is already a high-growth business for Delta Corp but the lockdown has accelerated consumer acceptance and customer acquisition,” said analysts from Union Gaming in a note on Wednesday.
“This segment has long been an undervalued and underappreciated component of the company’s business and growth profile that can no longer be ignored.”
The company’s online skill games business includes Gaussian Networks Private Limited and Gaussian Online Skill Gaming Private Limited, the operators of online poker site Adda52.com.
Its core casino business, which includes offshore and onshore casinos in Goa suffered from zero revenue during the June quarter, due to a shutdown of all land-based casinos.
The company has still been required to pay its annual licensing fees.
That being said, the company was able to lower its operating expenses by 64 percent year-on-year with strict cost control methods.
Union Gaming said they believe these cost control methods will be fully reflected in the September quarter.