Delta Corp focusses on online gaming; expects normalcy by FY21 end

Delta Corp, the largest and the only listed company engaged in India’s casino gaming industry, has informed the bourses about the effect of the temporary suspension of the operations on the company’s business.

The company said that since the third week of March 2020, the company’s operations have been stopped across all the casinos and hotels. This suspension has affected the company’s revenue of the casino and hospitality business. At present, the company’s hotel located at Daman has started its operations since June 16, 2020. Looking at the current scenario, the company’s management hopes that normalcy is likely to be gradually restored by the financial year ending March 31, 2021.

Further, the company’s online skill gaming business continues to operate and grow. Under this segment, to capitalise on the emerging trends, the company has expanded into online skill-based games such as poker and rummy. The company had strategically acquired ‘Adda52.com’, India’s largest online poker destination in 2017. With this investment, the company has consolidated its position in India’s gaming industry.

The company operates into all the formats of gaming i.e. live casinos, electronic casinos, and online gaming. As a leading player in the country, the company has established its presence at all the casino destinations in the country i.e. Goa, Sikkim, and Daman, under both offshore and land-based licenses, supplementing the casinos with hospitality assets. To spread its wings in the international markets, the company expanded its geographical operations by setting up Deltin International Casino at Hotel Marriott, in Kathmandu (Nepal). Meanwhile, the operations of Deltin International Casino started in February 2020.

Looking at the financials for the recently concluded quarter ended June 30, 2020, i.e.Q1FY21, the company’s consolidated revenue came in at Rs 48.34 crore vs Rs 186.51 crore in Q1FY20, registering 74.1 per cent YoY decline. There was no revenue under the Gamin operations segment in Q1FY21, however, revenue from online skill gaming operations jumped nearly 1.6 times in Q1FY21 as against in Q1FY20. The company has turned negative on the operational front with an operating loss of Rs 33.02 crore in Q1FY21 vs operating profit of Rs 67.72 crore in Q1FY20. The net loss for Q1FY21 came in at Rs 28.67 crore vs net profit of Rs 42.3 crore in Q1FY20.