India’s Delta Corp reported a 19 percent jump in fiscal Q4 revenue and EBITDA of 879 million rupees, topping expectations.
According to Union Gaming, the consensus for EBITDA had been 835 million rupees.
Traditional gaming revenue increased 21 percent, while online gaming grew 11 percent.
“Apart from the Goa move to land, Delta has numerous levers that culminate in our ~20 percent top line growth expectations for the each of the next two years,” Union Gaming said in a note. “Beyond strong tourism growth to Goa, the gaming operations segment will see incremental revenue commencing later this month with the launch of a traditional cruise line, this is likely to grow to management of up to four cruise ships over the next two years.”
While initial results are likely to be modest relative to the company’s Goa riverboats, this represents a new customer base as the cruises will sail out of Mumbai.”
Delta is India’s largest gaming operator, dominating the river boat casinos in Goa and also possessing an operation in Sikkim. The company has an application pending for a casino in a five-star resort in Daman and has also ventured into the online sector.
Goa has been considering moving its river boat casinos on land to an area that will be a designated entertainment and tourism zone. However, the passage of the necessary legislation has been delayed by the recent death of the chief minister Manohar Parrikar.