Delta Corp, a prominent player in India’s casino and online gaming sector, has recently disclosed its financial results for the quarter ending June 30, 2024.
Financial Performance Overview
Delta Corp reported a gross income of Rs 218.31 crores (US$26.1 million) for the quarter, marking a year-on-year decrease of 21.5% and a sequential decline of 2.0%. This downturn primarily stems from reduced performance in its core casino operations. Income from gaming operations specifically fell to Rs 169.42 crores (US$20.3 million) from Rs 226.84 crores (US$27.2 million) a year earlier.
The company did experience a modest uptick in income from online skill games, which rose by 4.2% quarter-on-quarter to Rs 36.55 crores (US$4.4 million). However, income from hospitality services declined by 9.3% to Rs 12.34 crores (US$1.5 million) compared to the previous quarter.
Profitability Challenges
Delta Corp’s profitability also took a hit during the period, with reported profits plummeting to Rs 21.68 crores (US$2.6 million). This represents a stark decline from Rs 72.41 crores (US$8.7 million) in the preceding quarter and Rs 67.91 crores (US$8.1 million) from the same quarter last year. These figures underscore the significant financial challenges the company currently faces.
Legal Issues and Tax Disputes
Beyond financial performance, Delta Corp is embroiled in legal disputes concerning substantial tax demands. The company disclosed that three of its subsidiaries have been issued notices demanding payment of Rs 11,439.49 crores (US$1.38 billion) for alleged short payment of GST (Goods and Services Tax).
Delta Corp and other affected companies have escalated these disputes to the Supreme Court through Writ Petitions, contesting the basis and validity of these tax claims. The demands are reportedly calculated based on the gross bet value of all games played at Delta Corp’s casinos and online platforms. The company asserts that these tax demands are arbitrary and contrary to legal provisions, emphasizing that it has initiated legal proceedings to challenge them.
Delta Corp’s latest financial disclosures paint a challenging picture, marked by significant revenue declines in its core casino operations and profitability setbacks. The company’s strategic focus on legal battles against hefty tax demands adds another layer of complexity to its current business landscape. Moving forward, Delta Corp’s ability to navigate these financial and legal challenges will be crucial in determining its future trajectory within India’s gaming and hospitality sectors.