Holding Company of Casino Royale Poised to Grow

Delta Corp, one of the foremost groups in the hospitality and gambling industry in India, has registered a growth of 200% in net profit in the 1st quarter of FY12. The company is the only one in India listed in the gaming space. The Group CFO of the company stated that the hospitality and gaming arms of the company are poised to grow and that this could drive the company forward. He mentioned that Delta Corp will focus more on the gaming sector in the near future.delta corp logo

The CFO believes that the company could expect sales growth from Casino Royale, its off-shore casino, to be very strong. Casino Royale is one of seven off-shore gambling centres in Goa, where live dealing is permitted. In the 1st quarter of FY12, this vessel registered nearly 27.8 crore in sales. According to the CFO, the gaming arm’s effective contribution could increase this year to the overall profits of the company.

The company has a clear strategy in place to move ahead as far as its gambling arm is concerned. The gaming business is likely to go hand-hand with the real estate arm of the company. This is the company’s plan for the long term, and will enable the gaming arm to continue growing the way it has. The key reason behind this is that the real estate sector too has witnessed a huge growth in India in the recent past. By strengthening its presence in both gambling and real estate industries, Delta will be able to counter balance its risks and ensure strong revenues.

Currently, Casino Royale is the only operational vessel from Delta Corp. In the coming months, two more – Caravela and Horse Shoe – will become functional. Of the two, the company has a license for the former and is expecting one for the latter soon. Horse Shoe is a vessel that has been imported from Harrah’s, and is set to become operational in the next financial year.

According to the company, gaming is a business with fixed costs, and very little variable expenditure. The company is currently bearing the cost of holding three licenses, which do not come cheap in India. This, combined with the fact that only one and part of the second property are functional, their net margins are under pressure. By 2013, the company expects to have all three licenses operational.

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