Delta Corp Q1 results: Net profit rises 19% at Rs 68 cr

Delta Corp Ltd on Tuesday reported 19 per cent increase in consolidated net profit at Rs 67.9 crore for the quarter ended June 30, 2023.

It reported a consolidated net profit of Rs 57 crore in the year-ago period. 

Delta Corp’s consolidated revenue was also up by 9 per cent at Rs 272.8 crore for June quarter as compared to Rs 250.3 crore in year-ago period.  

The company's EBITDA for the reporting quarter stood at Rs 95.8 crore as against the 87.5 crore last year in the same period.

On Tuesday, Delta Corp's scrip, which has lately been battered due to GST imposition of 28% on casinos, on BSE closed 0.2% higher at Rs 189.15.

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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, GST Council 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.

With inputs from Reuters