Release Date: July 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Hyderabad Park recorded its highest revenue of INR53 crores since inception for Q1, showcasing strong performance.
- ARPU for the quarter grew by 3% YoY to INR1,680, driven by non-ticket revenue.
- Operations commenced at the new Bhubaneswar Park, creating approximately 450 new jobs.
- Expansion plans include new parks in Indore, Mohali, Noida, and Ahmedabad, with the Chennai project expected to operationalize by December 2025.
- The company is exploring fundraising options to support its expansion strategy over the next seven to eight years.
Negative Points
- Revenue from operations decreased by 6% YoY to INR172.9 crores.
- Footfall numbers declined by 9% to 10.02 lakhs, impacted by heat waves, water shortages, and election disruptions.
- EBITDA for the quarter fell by 22% YoY to INR95.9 crores, with EBITDA margins decreasing by 1,000 basis points.
- Profit after tax decreased by 25% YoY to INR63.2 crores, with PAT margins declining by 800 basis points.
- Footfall in Bangalore saw a significant decline of 24% YoY, with continued challenges expected due to adverse weather conditions.
Q & A Highlights
Q: Given the significant footfall decline in Bangalore, what's your outlook for the rest of the year?
A: It's challenging to predict footfalls as they depend on various factors like weather and local advisories. The decline was mainly in April due to a heat wave and water shortages. If adverse conditions don't persist, we should be able to recover some numbers by year-end. β Arun Chittilappilly, Managing Director
Q: How are the footfalls and ARPU trending for the new Odisha Park?
A: Footfalls are trending at 130% of our expectations, and ARPU is around INR1,300, higher than the predicted INR800-1,000. However, it will take about a year to stabilize. β Arun Chittilappilly, Managing Director
Q: What are the expectations for Bhubaneswar Park in terms of footfalls over the next two years?
A: We expect about 4.5 lakh visitors in the first year, growing in double digits for the next two to three years, reaching around 7-8 lakh visitors in four to five years. β Arun Chittilappilly, Managing Director
Q: Can you provide an update on the Chennai Park project?
A: The budget remains at INR500 crores, but the opening has been delayed from June 2025 to December 2025 or January 2026. β Arun Chittilappilly, Managing Director
Q: What were the upfront costs for the Odisha Park commencement, and how did it impact EBITDA?
A: The total revenue was INR9 crores with an EBITDA of INR85 lakh. Additional expenses included INR1 crore for wages, INR75 lakh for salaries, and INR3.6 crores for marketing, totaling INR11 crores, including INR3 crores in depreciation. β Saji Louiz, Chief Financial Officer
Q: What is the revenue split between group sales and retail sales?
A: For Q1, 80% of revenue came from retail sales and 20% from group sales. This ratio changes every quarter. β Arun Chittilappilly, Managing Director
Q: What is Wonderla's competitive advantage when opening new parks in regions with established local players?
A: We offer a superior experience with higher caliber rides and attractions at a lower cost. Additionally, we are an amusement park, not just a water park, providing a more comprehensive value offering. β Arun Chittilappilly, Managing Director
Q: What caused the sharp decline in margins for the current quarter?
A: Two exceptional items: INR2 crores in ESOP expenses and INR3.6 crores in one-time expenses for the Bhubaneswar Park launch. β Arun Chittilappilly, Managing Director
Q: What is the margin guidance for the coming quarters?
A: We aim to maintain historical margin levels, though there may be slight changes due to the new park. β Arun Chittilappilly, Managing Director
Q: How do you plan to balance the focus between retail and group sales?
A: The focus shifts quarterly. Q1 is low on group sales, while Q3 and Q4 see higher group sales. We adjust our strategy based on demand. β Arun Chittilappilly, Managing Director
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
