Delta Corp net sales double, loss narrows to Rs 22 crore in Q2

Gaming and entertainment major Delta Corp on Monday reported a consolidated net loss of Rs 22 crore for the September quarter (Q2FY22), which in comparison to the Rs 55 crore loss a year-ago period (Q2FY21) and Rs 29 crore in the previous quarter (Q1FY22), signaled signs of improvement and recovery.

Net sales of the company nearly doubled to Rs 74 crore from Rs 38 crore in the same quarter last year, with net sales seeing a 1.5% dip from Rs 75.87 crore in the June quarter.

The company reported a marginal drop in income from gaming operations, which stood at Rs 40.05 versus 41.43 crore in the June quarter. Hospitality and other operations contributed to sales worth Rs 12.53 crore as compared to Rs 9.83 crore in the previous quarter.

Delta Corp’s EBITDA loss stood at Rs 19 cr as opposed to a loss of Rs 45.1 crore in the corresponding quarter last year.

Last month, Hardik Dhebar, group chief financial officer (CFO), revealed that Delta Corp is looking to raise around USD 30-40 million for its online gaming business.

“This USD 30-40-50 million should help us for the next 3-6 months to pump up our revenue, pump-up the numbers,” he said, highlighting that the online business has remained a steady contributor to the company’s topline.

In August, Goa’s Investment Promotion Board (IPB) had given its nod to Delta Corp’s most ambitious project in the coastal state – the Entertainment City at Dhargal.

The project is bound to not just improve infrastructure in Pernem, but also create jobs and give a much-needed shot in the arm to the Covid-impacted entertainment-led tourism and hospitality industry in the state.

The Board, under the chairmanship of chief minister Pramod Sawant, granted approval for the 100-acre project that comprises a casino, waterpark, resort, and multiplex. The mega project will be located just 5 km from the new Mopa airport.

On 12 December 2020, the company had made public the news of the in-principle approval from IPB for setting up an integrated resort in Pernem.

In 2018, Dhebar had outlined the company’s plans of building an entertainment city. However, the Covid-19 pandemic impacted the business with casinos remaining shut for large parts, thus leading to cash flows taking a hit.

The initial estimate pegged the project at an investment of Rs 1200 to Rs 1500 crore, with a timeline of 36-48 months for completion. The project is likely to be funded by a consortium of investors and not solely by the Jaydev Mody-owned company.