High stakes in the virtual arena: Delta Corp vs Nazara showdown

In the fast-paced centre of the digital world, an intense showdown is taking place. Two powerful contenders, Delta Corp Ltd and Nazara Technologies Ltd, are engaged in an intense battle for influence in the gaming industry. 

This is not merely a competition between two companies; it is a significant confrontation that has the potential to shape the future of an industry that is expected to experience exponential growth globally, reaching a staggering $426.02 billion by 2029 from its current value of $272.86 billion in 2024, according to a research conducted by Mordor Intelligence. 

As we find ourselves at the brink of this rapid expansion, projected to increase at a compound annual growth rate of 9.32%, the level of risk involved is unparalleled. 

Get ready for an in-depth exploration of the strategies, innovations, and visions of these two gaming giants – Delta Corp vs Nazara Technologies. Let’s get started!

Company profiles

Delta Corp Ltd

Delta Corp Limited is a prominent entity in the casino gaming industry, maintaining a significant footprint within India’s gaming market. With a foothold in all three major gaming formats—live, electronic, and online—the corporation has been around since 1990 and is a major participant in the industry.

The firm has broadened its business scope to encompass operations in both Goa and Sikkim, renowned for being prime casino hotspots in India. It encompasses not only the casinos but also the hotel industry and operates with licences both onshore and offshore.

Furthermore, the company has made a notable impact in the realm of real-money gaming, alongside its foray into skill-based online gaming in India. In 2017, it made its move into the online gaming market and solidified its standing in India’s gaming industry through the acquisition of Adda52.com for a total compensation of ₹223.9 crore, a prominent online gaming site in the country.

Delta Corp news regarding share price

As of April 24, 2024, the Delta Corp share price is ₹125.00. When we examine the Delta Corp share price history, it becomes evident that it has yielded a disappointing return of -48.80% over the past 5 years, as of 24th April 2024.

Nazara Technologies Ltd

Nazara Technologies is a prominent gaming and sports media platform based in India. The company boasts a robust market presence, both within its home country and globally, with significant operations spanning across Africa and North America. The enterprise provides an extensive array of engaging games, competitive eSports, and interactive early education platforms.

The company owns notable IPs like the World Cricket Championship (WCC) and CarromClash in mobile gaming, Kiddopia in early learning, Nodwin and Sportskeeda in eSports, and Halaplay and Qunami in skill and fantasy games.

Nazara Technologies news regarding share price

As of April 24, 2024, Nazara Technologies share price is ₹649.70. When we examine the Nazara Technologies share price history, it becomes evident that it has yielded a disappointing return of -22.22% over the past 5 years, as of 24th April 2024.

In the context of Nazara Technologies’ dividend history, the company has not provided any dividends since Jan 1, 2000.

Financial profiles

Now let’s compare the Delta Corp results based on Delta Corp’s balance sheet with Nazara Technologies’ financials based on Nazara Technologies’ balance sheet.

Source: Screener

Delta Corp experienced a decline in gross gaming revenue (GGR) during Q3 2024, as the recent GST changes resulted in a 6% rise in GST costs, thereby impacting net revenues. 

Nevertheless, the company successfully maintained a robust EBITDA margin of approximately 31%. In the quarter, there were additional GST expenses of around ₹7-8 crores for offline operations, resulting in a total GST payment of ₹58 crores for the quarter.

Comparatively, in Nazara Technologies’ Q3 2024 results, the company recorded a modest 2% year-on-year increase in revenue. The revenue from operations amounted to ₹320.4 crore, slightly higher than the ₹314.8 crore reported in the previous year. 

The company saw a significant increase in its EBITDA, reaching ₹37.7 crore, with an improved EBITDA margin of 11.8%. In addition, the Profit After Tax (PAT) increased by 47% year-on-year, demonstrating a robust financial performance for the quarter.

Reasons for growth

Delta Corp Ltd

• Implementing the new GST law and strategically responding to it, like providing full chip value with promotional chips, has proven beneficial in retaining customers and effectively managing costs.
• The introduction of a new ship, which is expected to double the company’s capacity, suggests a strong and enduring casino business ready for substantial growth.
• Investments in real estate and the development of an integrated resort project, including a theme park, suggest a strategic approach to diversify and generate extra sources of income.
• The company’s robust reserves and cash flows, coupled with strategic investments such as the stake in Peninsula Land Limited, showcase a solid financial footing that bolsters growth endeavours.

Nazara Technologies Ltd

• The company operates in three main segments – Gaming, Esports, and Ad Tech, which contribute to a diversified revenue stream.
• Nazara has been actively acquiring global gaming IPs and utilising targeted user acquisition strategies, as well as implementing data-driven product innovation.
• The impressive performance of products such as ‘Animal Jam’ and ‘Sportskeeda’ showcases the company’s remarkable knack for innovation and its unwavering commitment to fostering user engagement.

Company strategies

Delta Corp Ltd

1. Expansion and capacity: The company is focused on expanding its casino business by doubling the capacity with a new ship, which is expected to significantly boost revenues.
2. Hospitality integration: To enhance the casino business, Delta Corp is investing in a hospitality project to ensure ample accommodation for guests, which will directly contribute to the growth of revenue.
3. Real estate diversification: Investing in Peninsula Land Limited and partnering for redevelopment projects in Mumbai and Goa signifies a move towards diversifying into the real estate sector.
4. Integrated resort development: The company intends to develop an integrated resort in stages, beginning with a water theme park, to enhance its entertainment and leisure offerings.

Nazara Technologies Ltd

1. Acquiring global gaming IPs: Nazara is actively seeking to acquire global gaming IPs to enhance its portfolio and attract more users.
2. Esports expansion: The company has ambitious plans to expand its Esports segment, intending to establish itself as one of the leading esports companies worldwide.
3. Supporting Indian developers: Nazara aims to provide support to Indian developers and establish a wide user network through its publishing division.
4. Strategic acquisitions: Nazara has successfully secured substantial funding and is actively pursuing exciting acquisition opportunities to further enhance its operations and explore new markets for expansion.

Future outlook of the gaming industry

The gaming industry is set to experience extraordinary development and innovation in the years to come. With ongoing technological progress, we anticipate increasingly engaging and dynamic gaming environments, propelled by innovations in virtual reality, augmented reality, and AI.

The rise of mobile gaming and esports also signals a shift in how games are consumed and enjoyed, making gaming a more social and accessible activity. In addition, a broader variety of interests and demographics will be catered to by games in the future, leading to a more diverse industry. 

The integration of blockchain and NFTs in gaming could also revolutionise the way value is created and exchanged in games. As the boundaries between the virtual and real worlds continue to blur, the gaming industry is set to offer more engaging, personalised, and transformative experiences, cementing its place as a dominant force in the entertainment sector.

Bottomline

Delta Corp, a major player in the Indian gaming industry, has shown remarkable resilience in the face of challenges. They have successfully utilised strategic initiatives, such as adapting to the GST law and undertaking expansion projects, to fuel their growth. 

On the other hand, Nazara Technologies demonstrates a strong dedication to innovation and user engagement through its diversified portfolio, global presence, impressive financial performance, and strategic acquisitions.

As the gaming industry evolves with advancements in technology, both Delta Corp and Nazara Technologies are well-poised to navigate these changes and capitalise on emerging opportunities.