On Tuesday, India’s Delta Corp Limited, reported a 22% increase in revenue over the same period as last year in its quarterly profit performance.
Delta, India’s only listed casino and online gaming service, announced its results for the months from July to September 2019. The company reported total revenue of Rs. 252.76 crores ($35.4 million), which was an improvement of Rs. 16 crores ($2.2 million) over this year’s second quarter.
Delta reported in their study that its online gaming revenues derived from online poker and rummy websites have increased marginally. The rise from the same quarter of 2018 was Rs. 5 crores ($700,000).
With only a small decrease in net post-GST revenue recorded at 0.1 percent, it meant an increase in profit after tax of 22% Delta said the profit after tax came in at Rs. 59.04 crore ($8.3 million), while the company recorded a profit after tax of Rs. 48.10 crores ($6.7 million) in the same period in 2018.
A major contributing factor in overall revenue is the Indian federal government’s cut in corporate taxes. The tax rate fell from 30% to 22%, which helps to boost Delta’s profit margin.
To Delta, this has proven to be a profitable year. The firm grew its sales by 18.7 percent over the same time last year in the first half of this year. The cause was strong performance from their casino operations, which increased revenue by more than 21%.
There was also an improvement in the second quarter of this year, although it was only 2.6% in 2018 over the same period. The rise increased to 42.5 crores of Rs ($5.95 million). While there was a slight decline in total revenue in this period, gaming revenue continued to rise as costs and expenses declined, allowing the company to increase overall income after tax.
This gain happens at a time when the company is still being prosecuted for possible tax evasion by the Indian government. While this study had no impact on the company’s overall profit, it had a negative impact on the stockholders. Since May, the stock’s value has dropped by double digits, and there has been a major selloff of shares announced in July.
Since then, this selloff seemed to have cooled off, and these new income figures would help build confidence in the company from investors.