14 Jan 2020

Delta Corp Reports Flat Revenues, Lower EBIDTA, 9% jump in Net Profit

Deltin boat

Listed online gaming and casino company Delta Corp Limited announced its results for the third quarter of financial year 2019-20.

The company declared that its consolidated net revenues for the period October-December 2019 was Rs. 205.13 crores, which was roughly the same as the revenues it earned for quarter three last year.

Delta’s EBIDTA however declined to Rs. 73.52 crores against Rs. 80.98 crores for the same quarter last year and Rs. 75.47 crores for the September 2019 quarter.

The company’s EBIDTA margin also fell sharply by 320 basis points from 41.7% for Q3 last year to 38.7% this year.

Despite the flattish revenues and reduction in margins, the company’s net profit increased by 9% year-on-year to Rs. 54.90 crores, largely on the back of increased other income and reduced corporate tax liability.

Delta’s wholly owned online gaming subsidiary, Adda52, reported total gross revenue of Rs. 40.29 crores for the quarter, against Rs. 37.05 crore for the same quarter last year, representing approximately 8% year-on-year increase.

Last week, the company had announced that its Nepal subsidiary, Deltin Nepal Private Limited had received a gaming license to operate a casino at the Marriott Hotel in Kathmandu, pursuant to a lease agreement signed with the hotel owners, Everest Hospitality and Hotels Private Limited. Delta Corp has expressed its intention to start casino operations in the five-star property shortly.