Indian gaming operator Delta Corp saw its total income grow 36% year-on-year to 209.63 crore in the three months to 30 September 2018, led by a 40% increase in casino income to 202.87 crore.
Gross income for the period reached 254.4 crore, up from 187.9 crore in the same quarter last year thanks to strong growth in both the casino and online skill gaming operations. Online enjoyed a 46.0% year-on-year increase to 35.16 crore, although sequentially the segment declined slightly from 39.03 crore. Casino operations climbed 14.8% sequentially.
According to Union Gaming’s Grant Govertsen, Delta Corp’s strong results – which included EBITDA of 845 million rupees – was due to both higher footfall and a better quality of customer being utilized on the company’s floating Goa casinos.
“While the company continues to experience some benefit from displaced customers from nearby small-scale casinos that have recently closed or downsized, most of the growth comes from a combination of improved marketing efforts (attracting higher caliber players while weeding out players who are low value and are taking up valuable – and finite – space on the gaming floor) in addition to very robust general domestic tourism trends to Goa,” Govertsen said.
“Management indicated foot traffic reached 100,000 during the quarter vs 81,000 in the prior year quarter, suggesting casino revenue growth is being equally driven by increased player counts and increased spend per customer.
“Based on current utilization rates we believe there remains a few years of headroom in terms of GGR growth well into the double digits until such time as physical capacity represents a significant hurdle.”
Delta Corp operates three offshore casinos and a hotel-casino in Goa, Casino Deltin Denzong in Sikkim and The Delton integrated resort in Daman. However, like all local operators its casino segment remains in limbo as the government continues to delay the planned relocation of Goa’s six floating casino ships to a new onshore “entertainment zone” along the northern border. The delay is believed to be due to the poor health of Goa’s Chief Minister.
