Delta Corp jumps 11 per cent on reopening of casinos in Goa & Sikkim

Delta Corp, the largest and the only listed company engaged in India’s casino gaming industry, surged nearly 11 per cent to Rs 120 on the announcement of casino reopening in Goa and Sikkim from November 01, 2020.

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 from the casino and hospitality business.

At present, Delta Corp’s hotel located at Daman has started its operations on June 16, 2020. Looking at the current scenario, the company’s management hopes that normalcy could be gradually restored during the financial year, ending March 31, 2021.

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 a 74.1 per cent YoY decline. There was no revenue under the gaming 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 an 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.

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