Delta Corp posts 19% higher profit on sustained casino gaming demand

BENGALURU (Reuters) - India's casino operator Delta Corp reported a 19% rise in first-quarter profit on Tuesday as higher demand for casino gaming more than offset climbing costs.

The Pune-based company's consolidated net profit for the quarter ended June 30 rose to 679.1 million rupees ($8.30 million) from 571.3 million rupees a year earlier, it said in an exchange filing.

Growing revenue offset total expenses for the quarter, which inched up 9% to 1.95 billion rupees, with licence fees and registration charges rising more than 7%.

Revenue from its mainstay casino gaming division rose about 11%, helping net sales climb nearly 9% to 2.73 billion rupees.

However, revenue from its online skill gaming division, which includes poker and rummy games on online site Adda52.com, slid more than 1%.

"Regulatory clarity over issues concerning the industry is expected in due course of time," said Chairman Jaidev Mody in a statement.

Earlier this month, India imposed a 28% tax on funds that online gaming companies collect from their customers, replacing the small tax on fees they charged for real-money games.

Chief Financial Officer Hardik Dhebar had earlier said the online gaming scenario was "becoming clearer" in terms of the business's legality and that the industry was receiving more recognition.

The company said it was "hopeful and confident" that a "mutually amicable and favourable outcome" would emerge from concerns being raised by investors and industry representatives.

In April, Delta said it wanted to focus on attracting retail customers and posit itself as "a family destination" as the revenue contribution from big-ticket gambling, which the company called a "high-rolling business", was "very miniscule".

The company, which operates Asia's largest floating casino in Goa, Deltin Royale, is expanding its fleet to that effect with new ships expected to roll out this year, nearly tripling its capacity by the end of fiscal 2025.

Deltin Royale contributes around 60%-70% of the company's topline monthly, Dhebar said in April.

Shares of Delta Corp closed 0.29% up on Tuesday.

($1 = 81.8494 Indian rupees)

 

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sohini Goswami)