GST Council’s 28% levy on online gaming firms. Jain said Dream Sports's revenues will suffer a 30-40% hit over the next two years because of this. Despite that, it will still have cash left over for acquisitions, he added.
“We're debt-free company (so we can raise it). We have our equity, and then we have cash – we have three currencies," Jain said on acquisitions would be funded. “It depends on the asset.
We have we have a fairly strong treasury. While our revenue for the RMG (real money gaming) industry after [the GST hike] is going to be hit by maybe about 30% and EBITDA is going to be hit by 60%, we still have a bit coming in. We don't need debt to fund our current business, so we will still be able to go out and continue investing in new businesses," Jain added.
“We also have a fantastic cap table that is willing to invest more in our parent if they find the right opportunities," he said. Dream Sports has moved court against the retrospective GST. “If the courts rule in favour of taxing the industry ₹2 lakh crore then the industry shuts down, including us.
There is no plan B. Its not like we have tens of crores in cash and it is not like the we will be able to raise capital, as valuations will plummet if this becomes a reality," Jain said. The government has said that 28% tax on GST is not retrospective and that it was always in place.
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