Delta Corp Limited is an Indian hospitality, real estate and gaming corporation that owns and operates several casinos in Goa and Sikkim, and hotels across the country. The gaming giant recently reported INR 2.22 billion ($33.4 million) in the first quarter of 2018, ending 31st March 2018.
These numbers indicated an increase of 64% YoY (year-on-year) and 6% sequential growth thanks mainly to good results from its floating casino operations in Goa. The company has done well to see a growth in the face of ongoing talks that would see its floating casinos being moved to land.
Revenue from Delta Corp’s casino operations grew from INR 947 million to INR 1.64 billion ($24.7 million), indicating a 73% growth. Similarly, the company has also seen strong growth in their online poker operations from popular poker website Adda52 which they acquired last year. Revenue from Adda52 was up 18% to INR 335 million ($5 million).
The Delta Corp share price took a massive hit with the Goa Government announcing casino license fee hikes at the end of last month. However, these strong numbers have led to a recovery of the stock and the stock itself has multiplied over three times in the last five years. Indian ace investor Rakesh Jhunjhunwala also owns 7.5% stake in the company!
The industry is putting together a joint effort to appeal for a rollback of these license fees. “This is ongoing and there is no further clarity today. We had already adjusted our estimates to account for the new fee structure, so any movement would represent upside to our model. We think Delta comes out on the other side in better shape – either the fees will decline, or some number of competitors will not survive, and Delta will be the natural share gainer as it captures displaced customers,” said Grant Govertsen, Union Gaming’s Head of Asia Equity Research.
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