Delta Corp reports gross income of $28 million in December 2023, sees 15% y-o-y drop

For the quarter ending December 31, 2023, Delta Corp, an Indian operator of casinos and online gambling, reported total income from operations of Rs 234.41 crores (US$28.2 million). This is a 15.6% year-over-year decline and a 14.8% consecutive fall. The decline is the result of the company’s casino gaming division.

Gaming revenue in the December quarter was Rs 181.54 crores (US$21.9 million), as reported in the papers. This is less than the revenue from the same time last year, which was Rs 230.38 crores (US$27.8 million) in the September quarter and Rs 221.95 crores (US$26.7 million). On the other hand, revenue from hospitality increased by 59.8% to Rs 13.74 crores (US$1.66 million), while income from online skill games increased by 8.3% to Rs 39.13 crores (US$4.7 million) over the previous quarter.

Due to a decline in gaming income, Delta Corp also recorded a 50.3% sequential loss in profit for the quarter, coming in at Rs 34.48 crores (US$4.2 million).

In related remarks, Delta Corp said that letters of claimed GST deficiencies to three of its subsidiaries had resulted in demands for back payments totaling 11,439.49 crores (US$1.38 billion), prompting the company to decide against including an impairment provision in its financial statements for the December 2023 quarter. The company believes these subsidiaries have a strong case against the notices to show cause.

Delta Corp described the charges as an ongoing “industry issue” with many submissions to the government from industry participants, emphasizing that they are based on the gross bet value of all games played at its casinos and online platform. The appropriate High Courts granted stay orders to the company and its subsidiaries after they filed writ petitions. Legal analysis indicates that Delta Corp views the tax requests and notifications as irrational and beyond the letter of the law, and the subsidiaries will fight them with every available legal tool.

Original story by: IAG