Wonderla Holidays (WONDERLA) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue from operations was INR 172.9 crore (Rs. 1,729 Mn), a 6% decrease year-over-year due to lower footfalls and external challenges, while Hyderabad park achieved record revenue.

• Total footfalls declined 9% to 10.02 lakh, mainly impacted by heat waves, water shortages, and election-related disruptions in key markets.

• The new Bhubaneswar park commenced operations in May 2024, expanding the national footprint and creating 450 new jobs.

• Unaudited financial results for Q1 FY25 were approved, with statutory auditors issuing an unmodified review conclusion.

• Board approved exploring equity, debt, or hybrid fundraising to support 7-8 year expansion plans.

Financial highlights

• Revenue from operations declined 6% YoY to Rs. 1,729 Mn in Q1 FY25; adjusted EBITDA fell 17% YoY to Rs. 1,018 Mn; EBITDA margin at 54% (down 1,000 bps YoY).

• PAT dropped 25% YoY to Rs. 632 Mn; PAT margin at 36% (down 800 bps YoY); EPS at Rs. 11.1.

• ARPU increased 3% YoY to Rs. 1,680, driven mainly by non-ticket revenue; SPH up 15% YoY to Rs. 442.

• Sequentially, revenue grew 73% and adjusted EBITDA rose 143% from Q4 FY24.

• Total income for Q1 FY25 was ₹17,746.89 lakhs, with net profit at ₹6,324.18 lakhs.

Outlook and guidance

• Management remains optimistic about future growth, aiming to recover footfall losses if adverse weather and external factors subside.

• ARPU growth for FY25 is expected to be around 5-6%, lower than earlier guidance due to potential discounting.

• Expansion strategy includes new parks in Chennai and other states, with active discussions with multiple state governments.

• Focus on enhancing customer experience, digital marketing, and integrating resorts with parks.

• Footfall for the year may be flat or slightly improved compared to the previous year, depending on external conditions.