Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wonderla Holidays Ltd (BOM:538268, Financial) successfully completed a recent fund raise through a QIP process, indicating strong investor confidence in its growth strategy.
- The Hyderabad Park achieved its best-ever Q3 performance, showing significant recovery and growth potential.
- The company is undergoing a digital transformation, including a revamped website and enhanced online booking systems, which have led to increased online bookings.
- Non-ticket revenue per customer increased by 9% in Q3 and 12% over nine months, reflecting successful efforts to diversify income streams.
- Expansion plans are on track, with the Chennai Park expected to begin operations by the end of the next financial year and the Bangalore resort extension progressing well.
Negative Points
- Overall revenue for the quarter decreased by 2% compared to the previous year, primarily due to lower turnout in key locations like Bhubaneshwar and Kochi.
- EBITDA for the quarter fell by 30.3% year-on-year, with EBITDA margins declining to 33.3%.
- Profit after tax for the quarter decreased by 45.7% compared to the previous year, with PAT margins at 16.1%.
- Footfall in Bangalore and Kochi was significantly impacted by unexpected weather conditions and health concerns affecting group visits.
- The newly launched Bhubaneshwar Park experienced lower-than-expected footfalls due to inclement weather and the need to establish a new market category.
Q & A Highlights
Q: Can you explain why the Q3 footfall was significantly low for Bangalore and Kochi, despite previous positive expectations?
A: Dheeran Choudhary, COO: In Bangalore, unexpected monsoon and flooding affected revenue for two weeks. In Kochi, while retail footfall grew, school groups refrained from visiting due to health concerns, impacting overall numbers.
Q: What caused the decline in footfall at the Bhubaneshwar park, and what are the expectations moving forward?
A: Arun Chittilappilly, MD: The decline was due to two cyclone events and the park being new in the category. The concept of visiting amusement parks in winter is not established there. We expect better footfalls from March onwards.
Q: What initiatives are being taken to increase revenue and footfall in existing parks?
A: Arun Chittilappilly, MD: We are investing in new attractions and digital transformation. New attractions have been launched in Cochin and will be rolled out to other parks. We are also adding new restaurants and focusing on online bookings to lock in footfall.
Q: How has Hyderabad achieved impressive footfall growth this quarter?
A: Arun Chittilappilly, MD: The growth is mainly due to increased group bookings, which have significantly boosted footfall. We aim to replicate this success in other markets.
Q: What is the expected timeline for the Chennai park to become operational, and are there any delays?
A: Arun Chittilappilly, MD: The Chennai park is expected to have a soft launch by December 2025. The opening was delayed from June/July 2025 due to weather conditions, but no significant cost escalations are expected.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
