Casino gaming company Delta Corp Ltd. resumed operations in the last 10 days of September in Goa. Within that short span, it managed to earn revenues equivalent to the entire month of April, said Hardik Dhebar, group chief financial officer of Delta Corp.
Dhebar expects the strong growth trajectory to sustain in October, helping the company surpass the pre-Covid-19 revenues, subject to that there are no fresh disruptions. Delta Corp. has lined up several events to attract patrons, he said in an interview with BloombergQuint's Niraj Shah.
The company saw revenues staying steady at Rs 75 crore in the quarter ended September, according to its results released on Monday evening, Net loss narrowed to Rs 22 crore from Rs 29 crore from the previous quarter, partly on account of reduction in costs.
Given the low base, there would be a J-curve effect on revenues, according to Dhebar. He then expects a steady uptick on a normalised level.
Delta Corp.'s shares surged as much as 12.9% and were trading 7.8% higher as of 1:24 p.m. compared with a nearly unchanged Nifty 50.
What Drives Optimism
Daman Hotel back to pre-pandemic levels on operating income.
10 days of Goa casino business generated business equivalent to revenues in the whole of April.
Sikkim casino business in Q2 equivalent to revenues in entire 2019.
Online Gaming Business Stake Sale
While not commenting on timelines, he said the company is open to raising capital through a stake sale or tying up with a strategic or a financial partner.
Daman Casino Business
Delta Corp. has not received permission for its casino in Daman. After the Supreme Court sent the matter back to Mumbai High Court, Dhebar said the company has sought an early hearing.
Onshore Entertainment City in Goa
The company received an in-principle approval in December 2020 from the Goa Promotion board for the 100-acre parcel. Dhebar says the project has gone for the final approval to the cabinet.
Dhebar is confident that the project will be funded via internal accruals. With Rs 400 crore of cash on books, and a normalised run rate of Rs 350-400 crore of annual Ebitda, Delta won't be required to raise debt.
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