This Casino stock which deals in the business of Gaming, Hospitality, and online skill gaming segment, was up 3 percent after its Adda52 & Head Digital’s A23 merged for ~Rs. 491 crore.
Price Movement
In Friday’s trading session, Delta Corp Ltd‘s share price touched a day’s high of Rs. 103, which was up by 3.10 percent. The share price reiterated from the day’s high and was trading at Rs. 100.15, which is 0.25 percent higher than the previous closing price of Rs. 99.90.
In the past year, the stock has delivered a negative return of around 30 percent and has underperformed the Nifty Index.
What Happened?
The company’s stock was in focus after Delta Corp and its subsidiary Deltatech Gaming Limited (DGL) (Adda52) entered into an agreement with Head Digital Works Private Limited (HDW) (A23) for a 51 percent stake of the DGL by HDW.
Further, HDW to merge with DGL. Post Merger, DGL to a hold 5.7 percent stake in HDW. The total consideration of the deal is ~Rs. 491 crore.
Management Commentary
The MD of Deltatech Gaming, Ashish Kapadia said “We’re excited for this journey with Deepak and team, whose leadership has been instrumental in shaping the online Rummy market in India. We believe that this transaction will help Adda52’s leading position in the online poker market.”
Further, the Founder and CEO of Head Digital Works, Deepak Gullapalli, said “HDW is the pioneer in online gaming in India and we are excited to work with one of India’s best-known poker brands Adda52. Adda52 has been a leader in online poker in India and has an excellent platform and a strong user base. This transaction will help grow our poker business and help us create a leading diversified card-based gaming platform in India.”
Q3FY25 Financial Performance
Their Q3FY25 results show revenue from operations of Rs. 194 crore which declined by 7.61 percent year on year, from Rs. 210 crore in Q3FY24. Its net profit increased by 2.85 percent year on year, from Rs. 35 crores in Q3FY24 to Rs. 36 crores in Q3FY25.
Business Segment
The company earns its operational revenue from Casino Gaming which contributes around 74.56 percent, followed by 19.31 percent from Online Skill Gaming and the remaining 6.11 percent from the Hospitality segment for the December 2024 quarter.
About the company
Delta Corp Limited is India’s leading gaming and hospitality company, operating casinos and hotels, primarily in Goa and Sikkim, and offers online gaming services through platforms.
Written by Santhosh S
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