Delta Corp Sees Big Drop in Profit for the Last Quarter

Delta Corp Limited, India's only listed casino and online gaming company which runs three out of the six offshore casinos in Goa, has seen its profit after tax (PAT) decline almost 50% for the quarter ending 31 March 2020 compared to the previous quarter.

The corporation reported net profit of Rs. 29.04 crores against profit of Rs. 55.07 crores for the third quarter, which ended on 31 December 2019.

Total income was down 10.35% to Rs. 191.30 crores from Rs. 213. 39 crores and earnings per share plummeted 47.29% to Rs. 1.07 from Rs. 2.03.

Financial year-on-year comparisons from 2018-2019 and 2019-2020 also show a decline. Total year-on-year income of Rs. 806.75 crores is down 2.7% from Rs. 829.10 crores in the last financial year. Net profit fell 5.6% to Rs. 185.63 crores (from Rs. 196.76 crores. Earnings per share were down 6.04% - Rs. 6.86 from Rs. 7.29.

Delta Corp has been hit hard with the enforced closure of its Goa casinos since mid-March. The firm runs major names like Deltin Royale - Asia's largest offshore casino vessel - Deltin JAQK, Deltin Caravela and Jalesh Cruises, plus venues in Sikkim and Daman.

However, in keeping with gaming trends across India, revenue from its online skill gaming operations (Adda52 and Adda52Rummy) increased to Rs. 45.30 Crore for the final quarter, up from Rs. 40.29 on the third quarter.

This pushed yearly figures for online gaming up to Rs. 162.14 crores from Rs. 148.16 crores in the previous financial year.

Delta Corp acquired Gaussian Network, best known for the Adda52 poker and rummy brand, in 2017.

Despite the challenges arising from the COVID-19 pandemic, the company's latest filing states: "The management has also evaluated the possible impact of this pandemic on the business operations and the financial position of the Group and based on its initial assessment of the current indicators of the future economic conditions, believes that there is no significant impact on the financial results of the Group, as at and for the year ended 31 March 2020."

It added the positive news that Goa, Sikkim and Daman have been declared green zones (free of COVID-19) could see the company's operations in these states resume within a few months.

We previously reported on how casino operations in India could look like when the lockdown is lifted, with a variety of health and social distancing measures in place.