Release Date: May 17, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Wonderla Holidays Ltd (BOM:538268, Financial) reported a year-on-year revenue growth of 13%, reaching INR 483 crores for FY24.
- The company achieved its highest ever EPS of INR 28, marking a 6% year-on-year growth.
- ARPU for the quarter increased by 14% to INR 1,349, and for FY24, it grew by 15% to INR 1,430.
- The new Odisha Park is set to open on May 24, 2024, which is expected to enhance future growth and appeal.
- The company is in discussions with various state governments to start multiple new projects, indicating future expansion plans.
Negative Points
- Footfall for the full year decreased by 2%, with a significant drop in group footfalls in Kochi due to changes in exam schedules and elections.
- EBITDA for Q4 FY24 decreased by 28% year-on-year, primarily due to reduced footfall, increased payroll expenses, and reduced other income.
- Profit after tax for Q4 FY24 declined by 35.5% year-on-year, with a PAT margin of 21.6%.
- The company does not expect more than 5% footfall growth for FY25 in its existing parks, indicating limited growth potential in mature markets.
- Heat waves and exam schedules have negatively impacted footfalls in certain parks, particularly in Bengaluru.
Q & A Highlights
Q: Footfall has decreased by 2% for FY24, while ARPU has increased by 15%. What are the reasons for the fall in footfall?
A: The decline in footfall, especially in the last quarter, is mainly due to a drop in group sales in Kochi, attributed to changes in exam dates and preponing of exams due to elections. Other parks did not face this issue. The ARPU growth is driven by non-ticket revenue, particularly from F&B and retail offerings.
Q: What is the guidance for footfall and ARPU for FY25?
A: We expect a 5% footfall growth for existing parks and a 10-12% ARPU growth. Significant growth will come from new parks, with the Odisha Park expected to contribute notably.
Q: What are the revenue and margin expectations from the Odisha Park in FY25?
A: We expect around 4 lakh visitors with an ARPU of INR 800 to INR 1,000. The park should be EBITDA positive in its first year and PAT positive by the second or third year.
Q: Are there any updates on discussions with state governments for new parks?
A: Discussions are currently on hold due to the election season. We will resume talks once normal government functioning resumes.
Q: What is the expected timeline for the Chennai Park?
A: The Chennai Park is expected to be operational by late Q2 or early Q3 of FY26, depending on weather conditions and other factors.
Q: Is there any focus on a franchisee model for park expansion?
A: We are open to management contracts and joint ventures for park expansion, especially in geographies where we don't have land parcels.
Q: What are the long-term drivers for footfall growth?
A: We see opportunities in tourism and tour operator segments, digital marketing, and increasing visit frequency. We aim to expand into new locations to drive growth.
Q: What is the CapEx plan for the Chennai Park?
A: The revised CapEx for the Chennai Park is INR 515 crores, including land costs. We have already spent INR 194 crores.
Q: How do you plan to manage the increased workload with new parks coming up?
A: We are reorganizing our teams, especially in sales, marketing, IT, and projects. We are also investing in new technology and beefing up our projects team to handle multiple projects simultaneously.
Q: What are the useful life assumptions for the Odisha Park?
A: We depreciate rides and machinery over a period of 10 years. This policy is consistent across all parks.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
