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Delta Corp slips after muted Q3 revenue

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Capital Market
Last Updated : Jan 14 2020 | 11:16 AM IST

Delta Corp fell 3.22% to Rs 200 after the company announced Q3 results after market hours yesterday, 13 January 2020.

The casino operator reported a consolidated net profit of Rs 55.07 crore in Q3 December 2019, up 9% from Rs 50.53 crore in Q3 December 2018. Net sales, however, remained flat at Rs 205.13 crore in Q3 December 2019 as compared to Rs 205.15 crore in Q3 December 2018.

While revenues from the casino gaming division declined by 3.41% to Rs 195.23 crore, those from the online skill gaming division increased 8.74% to Rs 40.29 crore and the hospitality division rose 2.63% to Rs 19.89 crore in Q3 December 2019 over Q3 December 2018.

The company said that one of the casino vessels namely "Del Tin Caravela" owned and operated by Dela Pleasure Cruise Company underwent maintenance in dry-dock and was not operational for 25 days during the quarter. This impacted the gaming revenue during the current quarter.

In the third quarter, the company's interest cost surged 132.2% to Rs 1.37 crore from Rs 59 lakhs incurred in the same period last fiscal.

The increase in third quarter's net profit was supported by 49.9% rise in other income, which stood at Rs 8.26 crore, and a significant decline of 35.8% in total tax expenditure as they fell to Rs 17.64 crore in Q3 December 2019 over Q3 December 2018.

Last week, the company announced that its subsidiary received a license for operating a casino at the Marriot Hotel in Nepal. The operations of the casino are expected to commence soon.

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Delta Corp is the only listed company engaged in the casino (live, electronic and online) gaming industry in India. It currently own and operate casinos Goa and Sikkim. In addition, the company also own and operate the online poker site 'Adda52.com', the online rummy site 'Adda52rummy.com' and the online fantasy sports site 'LeagueAdda.com'.

Delta Corp also owns and operates the Deltin Suites, a 106 room, all-suite hotel with a casino located in Goa. We also operate the Casino Deltin Denzong located at the Denzong Regency hotel in Gangtok, Sikkim. We also own and operate The Deltin, a 176 room five-star hotel in Daman, which is an integrated resort with a proposed casino.

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First Published: Jan 14 2020 | 10:35 AM IST

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