Delta Corp sells Deltatech Gaming to Head Digital Works

Head Digital Works has paid Rs4.91bn (US$57m) in a cash-and-stock deal.

India.- Delta Corp has sold Deltatech Gaming Limited (DGL) to Head Digital Works (HDW) for Rs4.91bn (US$57m). DGL operates the longstanding online poker platform Adda52, while HDW operates online rummy and poker platform A23.

The deal will take place in two phases, starting with a 51 per cent stake before a subsequent merger. Upon completion, Delta Corp will maintain a 5.7 per cent equity stake in HDW.

Delta Corp described HDW as the pioneers of online rummy and real-money gaming in India with a gaming portfolio that comprises online rummy, poker and cricket content. It said A23 Rummy is one of the largest real-money Rummy platforms in India with over 75 million users.

Ashish Kapadia, managing director of Delta Corp, 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.”

Deepak Gullapalli, founder and CEO of HDW, also shared his views: “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.”

For the third quarter of the financial year 2024-25, Delta Corp. posted income of Rs 206.99 crores (US$23.82m), up 0.3 per cent sequentially but down 7.6 per cent in year-on-year terms. Profit was up 24.39 per cent quarter-on-quarter from to Rs 35.73 crores (US$4.1m) and up 3.62 per cent from a year earlier.

Gross income from operations was Rs 235.27 crores (US$27.2m), flat year-on-year and up 2.9 per cent sequentially mainly due to growth in the company’s online skill gaming and hospitality segments. Revenue from gaming operations was down 1.01 per cent in quarter-on-quarter terms to Rs 175.44 crores (US$20.2m). The figure was down 3.36 per cent year-on-year. Online skill gaming revenue grew 9.2 per cent quarter-on-quarter to Rs 45.45 crores (US$5.2m). Income from hospitality operations grew by 47.9 per cent to Rs 14.38 crores (US$1.7m).

Cumulatively, Delta Corp has reported income of Rs 608.93 crores (US$70.06m) for the first nine months of the financial year, down 26.31 per cent year-on-year. Gaming operations were down 22.35 per cent year-on-year to Rs 522.09 crores (US$60.08m). Online skill gaming revenue was Rs 123.63 crores (US$14.22m), up 9.63 per cent, while income from hospitality operations was down 2.22 per cent to Rs 36.44 crores (US$4.19m).

See also: Delta Corp demerger approved by board

Head Digital Works has paid Rs4.91bn (US$57m) in a cash-and-stock deal. India.- Delta Corp has sold Deltatech Gaming Limited (DGL) to Head Digital Works (HDW) for Rs4.91bn (US$57m). DGL operates…