Delta Corp value could exceed current market cap

Content Team July 22, 2020

Share it :

Delta Corp value could exceed current market cap

Delta Corp online segment is to reach US$30.5 million in sales in FY22

Delta Corp, Indian gaming leader, 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?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.?