Quarterly profits have been really good for Delta Corporation, India’s only listed casino and online gaming company. On October 15, it announced a whopping 22% revenue increase over last year at this time, the period ending in September.
Now we know that the company experienced a total revenue of Rs. 252.76 crores ($35.4 million), a Rs. 16 crores ($2.2 million) increase over Q2 of 2019.
Stats and figures
Delta’s report was full of timely figures. They showed a small increase in online gaming from the popular online poker and rummy websites. The increase was Rs. 5 crores ($700,000) over the same quarter last year.
Looking closely, you can see a bit of a reduction in the net post GST revenue, reported at 0.1%, resulting 22% increase in after tax profits. The final figure came in at Rs. 59.04 crore ($8.3 million), while for the same period last year it was Rs. 48.10 crores ($6.7 million).
The reason no doubt is the reduction in corporate taxes by India’s federal government. The drop in tax rate from 30% to 22% helped boost Delta’s profit margin.
In sum, Delta had a good year. Revenues in Q1 were up 18.7% compared to last year. The casinos performed well, increasing profits over 21%.
As for Q2, there was a modest 2.6% increase over 2018 reaching Rs 42.5 crores ($5.95 million). Despite the slight decline, gaming revenue is on an uptick. With decreasing costs and expenses, Delta will continue to see an increase in overall profit after tax.
The good news is that this profit rise comes at a time of investigation by the Indian government, alleging tax evasion. The report bodes well, and time will tell. It has already had a negative impact on shareholders.
The stock has dropped by double digits since May, and a substantial selloff of shares was reported in July. Things have cooled off now, and the new profit numbers should help to buoy confidence.