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1) Company Overview
Delta Corp only listed casino operator in India enjoying 55% #marketshare in organized #casino market
Along with its casino business, company also owns #Adda52 a leading online poker.
It has licenses in all casino destinations ie #Goa, #Daman & #Sikkim.
Delta Corp only listed casino operator in India enjoying 55% #marketshare in organized #casino market
Along with its casino business, company also owns #Adda52 a leading online poker.
It has licenses in all casino destinations ie #Goa, #Daman & #Sikkim.
2) Competitive advantage & strong entry barriers
Delta owns 3 out of 6 offshore casino licenses and has a total installed capacity of 1lac sq feet and 1200 gaming positions.
The last license issued by Government of Goa was in 2011.
Delta owns 3 out of 6 offshore casino licenses and has a total installed capacity of 1lac sq feet and 1200 gaming positions.
The last license issued by Government of Goa was in 2011.
3) Shift from offshore casino to land will add significant value
Land based casino can prove to be a game changer for Delta Corp.
In Aug, 2018 the then Chief Minister ManoharParikar announced casino land policy to be implemented within four years post announcement
Land based casino can prove to be a game changer for Delta Corp.
In Aug, 2018 the then Chief Minister ManoharParikar announced casino land policy to be implemented within four years post announcement
The policy includes a separate gaming zone on land with integrated resort (IR) with rooms.
Out of the 5 licenses issued, 3 are held by Delta. Delta Corp has already bought 100 acre of land near proposed upcoming #GoaAirport.
Out of the 5 licenses issued, 3 are held by Delta. Delta Corp has already bought 100 acre of land near proposed upcoming #GoaAirport.
Capacity Constraint on offshore riverboat. All 3 riverboats have a total cap. of 1 lac sq feet.All riverboats operate without any room stays facilities
Global experience of #US and #Cambodia suggest shifting to land based casinos have the potential to increase footfalls by 10x
Global experience of #US and #Cambodia suggest shifting to land based casinos have the potential to increase footfalls by 10x
4) Case Study- #NagaCorp Cambodia
According to data, post land policy tourist visitations to Cambodia from neighboring countries increased by 1000% in the next 10 years. 1 bn USD GGR for India can also be a big game changer.
According to data, post land policy tourist visitations to Cambodia from neighboring countries increased by 1000% in the next 10 years. 1 bn USD GGR for India can also be a big game changer.
5) #GGR per year- #GrossGamblingRevenue
Due to highly regulated sector, casino business hasn’t grown upto its full potential. India’s GGR (Gross Gambling Revenue) at 1200 cr is the lowest in the world.
Due to highly regulated sector, casino business hasn’t grown upto its full potential. India’s GGR (Gross Gambling Revenue) at 1200 cr is the lowest in the world.
6) Adda52- Leader in online poker in India
http://Adda52.com"> http://Adda52.com is registering robust growth due to the increasing popularity of poker in India, 30% CAGR over next 3 years. In fact, Adda52 can be one of the key beneficiaries in this lockdown.
http://Adda52.com"> http://Adda52.com is registering robust growth due to the increasing popularity of poker in India, 30% CAGR over next 3 years. In fact, Adda52 can be one of the key beneficiaries in this lockdown.
7) Case Study #NazaraTechnologies IPO
India’s booming online gaming market might give way to India’s first ever IPO in online gaming space. It is expected to raise 800-1000 cr, valuing the company at 3500-4000 cr. With 150 cr FY19 revenues, Nazara is valued at 25x Price to Sales
India’s booming online gaming market might give way to India’s first ever IPO in online gaming space. It is expected to raise 800-1000 cr, valuing the company at 3500-4000 cr. With 150 cr FY19 revenues, Nazara is valued at 25x Price to Sales
Current economic crisis led by #COVID19
In such unprecedented times of crisis, WHY SHOULD YOU BUY DELTA?
In such unprecedented times of crisis, WHY SHOULD YOU BUY DELTA?
A) Adda52, COVID Proof Online Portal- Lockdown will create higher growth for the portal in terms of higher downloads. FY20 Adda52 has a topline of 160 cr vs 60 cr in FY16. Online portal EBIDTA margins of 20% post AD & Marketing spends creates decent cash flows and zero cash burns
B) Strong #BalanceSheet- Delta Corp with zero debt & cash plus financial investments of 500 cr can withstand 12-18 months of lockdown and no business activities. Casino business has huge fixed costs, around 50% of total expenses are fixed in nature.
C) No new Licenses- Due to the heavy #capex required for the integrated resorts, Government of Goa will not be issuing any fresh land based casino licenses for the next 10-15 years.
D) Throw Away Valuations- If Nazara technologies pre IPO road shows is any indication of the valuations that online gaming business can command then at current market cap (2000 cr), Casino business is for free. FY20 Consolidated Revenue at 780 cr & PAT 185 cr, available at 11x
E) Solid Fundamentals -
#Cash Surplus Balance Sheet -
Zero debt plus 500 cr cash & liquid investments will help management to withstand the current COVID19 crisis. The existing land close to the proposed North Goa Airport would require 100 cr over next 3-4 years to develop into an Integrated Resort
Zero debt plus 500 cr cash & liquid investments will help management to withstand the current COVID19 crisis. The existing land close to the proposed North Goa Airport would require 100 cr over next 3-4 years to develop into an Integrated Resort
F) Key #Risks
Highly Regulated Business
A prolonged Lockdown due to COVID19
New & unexpected license taxes
Highly Regulated Business
A prolonged Lockdown due to COVID19
New & unexpected license taxes
