Delta Corp has commenced management of operations of the casino at the hotel “The Zuri White Sands Goa, Resort and Casino”, situated at Pedda Varca Salcete, Goa. With the commencement of
operations of this casino by DPCCPL, the Company and its subsidiaries now operate 5 (Five) casinos in Goa.
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Files for IPO of gaming sub. Is it to delfect that the largest individual sharehoder is pariing down his position?
Wonder what the valuation would this sub come in at in this market. 130 crore topline and 550 crores of IPO (250 crores OFS).
Everything going right in the company except the sell off from RJ.
In last 10 days: New casino (managed) opened, IPO planned, Gaming city approved.
I do not think, a sell off should come again with such positive developments.
Next month Daman case will begin hearing. It can double on positive outcome, not much impact of negative. 6 months from now – New Ship can see the light.
FY23 has set the tone.
FY24 will end with more than double capacity.
FY27 the gaming city can also become reality.
All in all, size to be 3x - 4x in 5 years time, and company is at just 17 PE at current time (with normal operations year around)
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Any thoughts on the GST for gaming and casinos at 28%? The tax is being mulled at gross revenue and not on net revenue. And for even food and beverages served. This could severely dent profits, if I am correct.
GST is paid by customer to the Government, Delta Corp is just an intermediary who collects GST from Customer and pays it to the Government. There will be some short term impact if implemented, but we need to wait and see if Delta corp can still grows it’s revenue post GST increase.
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The Q1 results are positive. There is a sharp revival of the Casino business. With Goa becoming the favorite destination of Indian and foreign tourists, there is a clear possibility that this will grow further
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Hope this will benefit Delta Corp Google Announces Big Change To Playstore Policy For Online Gaming In India, To Allow Rummy And Fantasy Sports Apps
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Finally, the daman license on its way. 1500 gaming positions between the most riches of Mumbai and Gujarat.
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This is great news. Was the case relating to this or was it for casino license (non electronic)
Edit: Just Checked, the proposal was for electronic slot machines.
Also, what’s your source ? There’s no exchange filing
Not much info… but the second party confirmed it on twitter and their linkedin
https://twitter.com/AarambhWS/status/1569701520261763074?s=20&t=8loFbiYg2uK5S8KJ8zJzZQ
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There is an exchange filing by Delta Corp on this news.
2c0816a8-8fb3-42d4-b567-b9f53e819ea0 (1).pdf (277.0 KB)
Anyone tracking Delta Corp and the expected result tomorrow? Also heard news of someone big entering, when does it release its shareholding price
Great set of numbers once again. The demand is picking a lot and with this results people will see Delta Corp trading at PE of just 23x
As told earlier, gaming positions will double within a year. This share can easily fetch PE of 50 with revenue increasing more that 50% in a years time and the gaming city in sight.
Great stock to be in… hold tight.
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Forgot to update here on this thread – it was fake news and the people who spread this intentionally have been arrested. It involved 5-6 people including the one that I mentioned in my above post (Anshumali Pandey) and the mastermind was owner of VIGIL company. He spread this news and the fake letter along with hosting fake daman nic website to get investment in his company and then run away.
Think the GST issue is a big overhang. If GST is levied on 28% of the value of chips bought by the consumer, I think that might effectively kill the entire industry. Think we are in a catch-22 situation where depending on the judgement of the GoM tasked with deciding the GST issue, the fair value of the company is either 50-100% higher (if GST is levied on Gross gaming revenue) or probably 80-90% lower (if GST is levied on the value of chips bought). If they charge GST on value of chips bought, the casino operations might end up being worthless.
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The management seems quite confident that the issue of levying GST on chips would be resolved. Lets see…
Snapshot from earnings transcript below:
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A recent announcement in the new budget
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From their concall notes and some digging around.
Pros:
- Mgmt repeatedly mentioning that margins are likely to improve in coming quarters.
- Capacity utilization is at optimal level. The problem seems to be on overcrowding, which indicates that the company would benefit by increasing capacity.
- Not much competition on land based casino. They are planning a 150k sqft casino which will be the largest land based one in Goa.
- Their online game is rated 4.8/5 which is quite good, inspite of a money making business. This will likely be IPOed as Deltatech as and when approvals come in.
- Daman hospitality merger is also awaiting court approval. Mgmt indicates big positive if it happens and mentioned that Daman could be as big or bigger than Goa in terms of opportunity.
- Overall, it appears that the company can have more stable performance if they expand their capacity.
Sector tail winds:
- Indian market is not yet mature and busy days are only from Friday till Sunday and that too in evenings. This will improve more as the market becomes more mature (like Singapore). This would augur well for capacity utilization. But, this is a slow and long term scenario.
- Better air / road connectivity push from govt will bring in more tourism.
- Sector is moving more towards regulated regime which makes it easier for companies to scale without uncertainties.
Concerns:
- Recent reviews of deltin royale indicate that it is too crowded and is not good for kids. However, it seems like a hit with people who go for casinos.
- The mgmt commented (before budget was released) that they had reviewed the rules and are almost 100% compliant to those. But not sure if they also are commenting on the revised TDS of 30%. Some uncertainty prevails.
- Recent profits were down as they spent more on customer acquisition. Expect some pressure in next quarter as well as the vessel goes for dry docking.
- The mgmt didn’t give a clear response as of why the profits were down this quarter compared to last quarter which was hit by COVID.
Disc: Invested and might be biased.
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It doesn’t have a significant impact. In my opinion, a few categories of experienced players who are very good with the games are a sticky base and will play despite of the taxation. Of course, new players will now think about looking at such a high rate of taxation.
We can track new customer acquisition rates for other gaming companies post this announcement from the next quarters. This can give an idea of the overall impact on the industry as a whole.
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