Revenue in the company’s online segment is to reach US$30.5 million in sales in FY22
Indian gaming leader Delta Corp just published their Q2 2020 financial results and Union Gaming analyst John DeCree took a closer look at the numbers.
Delta Corp recorded zero casino revenue for the quarter due to the COVID-19 shutdown but still would have ended with a positive EBITDA in Q2 2020. Group-wide revenues were just US$8.1 million, this is all thanks to the company’s online business which increased a whooping 60% year-on-year basis.
DeCree forecasts revenue in the company’s online segment to reach US$30.5 million in sales by 2022 this is based on valuations of between 10x and US$458 million. This huge increase in Delta Corp’s revenues from their various online sites would mean that the company’s online gaming business could exceed the current market cap of the entire company within the next two years.
DeCree said: “Similar to trends seen in the US and around the globe, Indian consumers have flocked to digital and online entertainment channels during the lockdown” and added: “The online gaming segment is already a high-growth business for Delta Corp but the lockdown has accelerated consumer acceptance and customer acquisition. This segment has long been an undervalued and underappreciated component of the company’s business and growth profile that can no longer be ignored.”
This is just another example of how important the online business is becoming for land-based casino companies and that this is definitely a train that cannot be missed. With changing demographics all over the world in the future online sites might generate way more revenues than their land-based counterparts.
Delta Corp’s online gaming assets include online poker site Adda52.com, online rummy site Adda52rummy.com and online fantasy sports site LeagueAdda.com.
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