India's Delta Corp posts higher profit on sustained casino demand

Delta

25/07/2023 15:27

BENGALURU, July 25 (Reuters) - India's casino operator
Delta Corp  DELT.NS  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)
 ((Hritam.Mukherjee@thomsonreuters.com; Twitter:
@MukherjeeHritam;))