Recent reports are that Delta Corp has noted an increase in profits in the third quarter of the financial year 2019/2020. The profits have been noted despite reports that the largest casino operator in India is experiencing a stagnation in its revenue and a reduction in its earnings.
Delta owns and operates three floating casinos and two land-based gaming venues; one in Goa and the other in Sikkim. It also operates an online gaming site, Adda52 online poker, and an online rummy business.
The report which was released on Wednesday showed that in the last three months of 2019, Delta had earned a net revenue of $28.9 million from its operations. This is similar to the revenue earned during the same period last year.
However, the earnings went down by 9 percent to Rs735m. Despite this, the casino operator recorded a net profit of Rs549m, which is a 9 percent increment. The increased profits were attributed to reduced taxes and a negligible increase in the earnings. According to a post by the calvinayre.com business was also somewhat good and that the earnings should have been more appealing.
The gaming venues recorded a total revenue of Rs1.9b, a 3.4 percent decline from last year. The Deltin Caravela spending nearly a month of the quarter on a dry rock has been blamed for the reduced revenue.
Earnings from gaming went down by more than one fifth to Rs580m. Delta’s online gaming and the rummy business recorded revenue of Rs403m, an increase of 9 percent from last year. The online earnings also went up by more than one half to Rs128m.
Things might actually look up for Delta Corp, sooner than later. Recently, it received a gaming license to operate a casino at the new Marriott Hotel. The Marriott Hotel is a five-star hotel, operated by Everest Hospitality and Hotel Pvt Limited. Delta has not yet provided details on when the new casino will be launched. It also not clear where exactly or at what part of the hotel it will be located.
The only information the media has is that it will open soon, and interesting enough is that the company seems confident that this will happen and the board has already factor in key agendas and are planning to set the budget range.
In 2014, Delta opened a hotel in Daman, the Deltin Hotel. The design of the hotel accommodates a casino, but the casino has yet to come into existence and continues to lie there covered in dust and cobwebs. Delta has not given a comment yet on when the casino will be opened.
It is believed part of the delay comes from the government which has failed to issue the required legislation to jump-start the stalled project. Again, there has been scanty information regarding the progress with legislation.
Besides, it is still unclear whether its plans to open a casino in Diu are still underway or were abandoned altogether.
