The CFO of India’s Delta Corp expects the company to return to its original revenue and profitability by the third quarter of FY25.
According to the report, the gaming operator Delta Corp. is reeling under the 28 percent goods and services tax, registering a 59.34 percent decline in its consolidated revenue in the third quarter of this fiscal year.
To lure players back to its casinos following the implementation of the new GST regime in October 2023, the company has begun distributing one-time promotional chips, as mentioned by Anil Malani, the company’s CFO.
Malani stated that players expressed dissatisfaction with the 28 percent levy, leading the firm to realize the potential loss of customers in a competitive industry. In response, Delta Corp. pivoted its strategy in December, aiming to fulfill customer preferences and alleviate the tax burden.
This strategic shift manifested in the company’s December financials, with 55 percent of revenue generated in October and November and 45 percent in December.
Malani emphasized the success of the December decision in regaining and retaining customers. As of January 2024, Delta Corp. has continued this strategy, resulting in a return of footfalls to pre-October 2023 levels.
