Indian casino operator Delta Corp Ltd has announced a strategic move to separate its gaming business from its hospitality and real estate divisions.
This decision aims to enhance operational focus on its core gaming activities, allowing for more efficient management and development. According to the company’s Tuesday filing, this reorganization is “considered desirable and expedient to segregate its gaming business from the hospitality and real estate vertical.”
The demerger will create two distinct publicly listed entities: one dedicated to hospitality and real estate and the other continuing the gaming operations. Delta Corp believes this structure will “ensure transparency, accountability, [and] the highest standards of corporate governance.”
The hospitality division includes notable properties such as Deltin Suites in Goa and The Deltin, Daman, while the gaming arm will maintain its focus on casino operations. The company reassured stakeholders that this transition will not adversely affect employees, customers, or business partners, stating, “the Scheme will have no impact on employees, customers, and our business partners.”
Shares of Delta Corp have recorded a nearly two-digit increase in Wednesday’s trade following the demerger plan announcement.
As reported by AGB, Delta Corp has seen a steep decline in revenue and net profits during the second quarter of this year compared to the same period last year, primarily driven by a slowdown in gaming operations.
Total revenue reached Rs1.81 billion ($21.55 million) in the second quarter of 2024, down by 30.3 percent from Rs2.59 billion ($30.92 million) in the same period last year, again primarily due to a slowdown in gaming operations.
