Any update on Daman hearing?
It is on the 14 th, this Thursday.
Does anybody have any information about the outcome of the hearing?
It seems the case was listed for hearing on 13.11.2019. Here is the causelist for 13th Nov.
However, there is no record of listing on 13th Nov. The last date of listing is given as 10th July.-
Is there any update on Daman hearing…as mentioned in con call it was suppose to happen on 14 Nov but not able to find anything anywhere??
It seems the details of hearing dated 13.11.2019 have been uploaded on website today. Next hearing on 5th February, 2020.
If we as investors are getting fed up of waiting for clarity wrt Daman, imagine how pissed off the management is who invested 400 crore+ to set up this property 5 years ago (on the back of gov assurances) and are now having to run from pillar to post to get their permissions. Who is going to compensate Delta for the opportunity cost of this sunk capital?
HDFC AMC added to their overall holding - now holds more than 5% stake
Jalesh Cruise is reported to be preparing to launch second vessel by October this year offering all the luxury and features of the first vessel Karnika.
During the last concall the CFO had said that Karnika would be grossing Rs. 25 cr in annual revenue. Assuming similar capacity as that of Karnika, induction of the second ship may take the cruise revenue two-fold(both the vessels) once it commences operations in H2 FY21. Delta has exclusive right to operate casino in Karnika and all other upcoming cruise ships of JCML. Besides exclusive right(100% revenue) to operate casinos, Delta has around 20% share in overall revenue from entertainment and hospitality on-board the cruise ships.
But is there any casinos currently operating from Karnika. If yes how many gaming position?? Or is it just the right to operate if they decide in future??
Karnika operates the casino when it sails in international waters as casino operations can be conducted on cruise vessels beyond 12/200 nautical miles from the Indian coastline, i.e. outside the Indian territorial waters( as per my understanding ).
Karnika has 25-30 gaming tables comprising 200+ gaming positions.
Another positive for company - Casino license has been issued to company for operating out of Marriott Hotel Kathmandu, Nepal. Casino operations are expected to commence soon, however no timeline mentioned.
Disc: Invested
Q3 FY20 Results are out. There is NO growth.
They actually spent more time, money and attention in getting battle ready for the shift to land based casinos. They allowed Casino maharaja to take away some touristy visitors while Delta’s high value customers are suffering from economic slowdown etc. They do have an option to change the vessel to a bigger one if shift to land gets delayed further. However, I am also surprised by the weakness in gaming biz across the board while they were supposed to clock more sales in Sikkim, Jalesh etc to offset weakness in Goa. Going forward they have Nepal as well but will wait for concall before taking any call.
In the last concall if I could recollect they said rain played spoilsport
Dry-docking of one of the casino vessels ‘Deltin Caravela’ for 25 days during the quarter impacted the gaming revenue. As most of the costs of Caravela including licence fee, salaries, etc. have been paid, 80-85% of the revenue foregone due to dry-docking would have been added to the bottomline. I don’t know for sure how much revenue would Caravela have generated, had it been operational during the 25 days. As per my rough estimate the vessel might have foregone 7 - 9 crore in revenue resulting into 6-7 crore impact on the bottomline.
But, what led the management to chose Q3 for dry-docking of the vessel? During Q1FY20 concall the CFO said they did not expect any vessel to go for dry-docking during the next 2- 2.5 years.
Appears researchBytes changed UI. Not able to listen https://www.researchbytes.com/webcast.aspx?WID=203482#view1. Any one facing same issue?
Sharing brief notes which I remember from first 30 mins of call:
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Flat/No-topline growth commentary - Been quite difficult 9 months this FY with number of issues plaguing Goa over this time. Mentioned Goa taxi strike, prolonged extended monsoons, CAA protest and unrest, deep discount offers from competition Pride and Big Daddy (do not expect competition to be able to continue much longer with such promotion schemes). Believe size of market and overall pie has grown since Delta has been able to maintain similar revenues as last year and reasonably satisified with resiliency in operations. Expect to be back on growth track soon
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Nepal Casino - expect to soft launch in next few days. 2-2.5 months of operations expected in FY20. Marriott hotel is newest property in Kathmandu with state of the art facilities. Capex of 15-17 crore to come up with this casino. Expect 2-3 cr revenue per month with 45% EBITDA, can grow to 5cr revenue per month over time
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Shift out of Mandovi river / move to land - The move to land is inevitable and will definitely happen. Also given the size of casino operations across the players, no other land options except near the airport. No idea about timeframe (1 month, 3 months, 6 months). Goa government winter session not been convened - expecting some announcement pre/post budget
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Daman Casino License - Courts have been very busy in recent past, expect a hearing to take place in February with favorable outcome and judgment by courts. However, investors should look and price this as an option value