Delta Corp Q1 performance reflects challenges in?casino, online skill gaming segments??

Jenny Ortiz May 9, 2024

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Delta Corp Q1 performance reflects challenges in?casino, online skill gaming segments??

Delta Corp, a prominent player in India’s gaming industry, faced a 3 percent year-on-year decline in gross income from operations for the quarter ending on March 31, 2024. The company reported a gross income of Rs 222.75 crores (€24.8 million), attributed to decreases in both its casino and online skill gaming segments.

Income from gaming operations witnessed a decline to Rs 174.07 crores (€19.35 million) in the March quarter, compared to Rs 181.54 crores (€20.1 million) in the previous quarter and Rs 175.61 crores (€19.53 million) in the corresponding period last year. Similarly, income from online skill games fell by 10.4 percent to Rs 35.08 crores (€3.9 million) compared to the previous quarter.

Profit increase amid challenges??

Despite the decline in gross income, Delta Corp reported a remarkable 110% sequential increase in profit for the quarter, reaching Rs 72.41 crores (€8 million). This increase was attributed to the sale of a subsidiary, contributing to the company’s financial performance during the period.

Annual performance overview??

For the full fiscal year ending on March 31, 2024, Delta Corp experienced a 2.5 percent year-on-year decline in gross income, amounting to Rs 1,010.48 crores (€112.5 million). Both gaming operations and online skill games reported declines of 1.5 percent and 9.5 percent, respectively.

Legal challenges and industry representation??

Delta Corp addressed ongoing legal challenges, including notices sent to three of its subsidiaries demanding back payment of GST. The company, along with other impacted entities, has elevated writ petitions opposing these demands to the Supreme Court. Delta Corp asserts that these demands are arbitrary and contrary to legal provisions, emphasizing industry-wide concerns regarding taxation on gaming revenue.

The company reiterated its stance on the tax demands, emphasizing that they are arbitrary and not in alignment with legal provisions. Delta Corp has initiated necessary legal proceedings to challenge these demands, underscoring its commitment to defending its position within the legal framework.?

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