Wonderla Holidays (WONDERLA) Q4 16/17 earnings summary

Executive summary

• FY17 revenue from operations rose 31.7% YoY to Rs 27,041 lakh, while PAT fell to Rs 3,307 lakh from Rs 5,982 lakh amid higher operating costs, depreciation and tax provisions.

• Footfalls grew 19% to 2.659 million across three parks, driven by Hyderabad; Bangalore and Kochi attendance declined 12% and 5%, respectively.

• Hyderabad recorded 0.62 million visitors and reached EBITDA breakeven in its first operating year.

Financial highlights

• Revenue from operations was Rs 27,041.26 lakh vs Rs 20,535.94 lakh; total revenue including other income was Rs 27,671.52 lakh vs Rs 22,342.44 lakh.

• PBT declined to Rs 4,838.04 lakh from Rs 8,702.39 lakh; PAT was Rs 3,307.01 lakh vs Rs 5,981.59 lakh.

• EPS fell to Rs 5.85 from Rs 10.59; non-ticket revenue increased 63% YoY, with revenue per visitor rising to Rs 214 from Rs 155.

• Direct operating expenses increased to Rs 6,037.77 lakh from Rs 3,615.04 lakh; employee expenses rose to Rs 3,905.66 lakh from Rs 3,101.07 lakh.

• Depreciation and amortisation increased to Rs 2,927.86 lakh from Rs 1,392.46 lakh, reflecting the expanded asset base and Hyderabad development.

Outlook and guidance

• Chennai park investment planned at Rs 350 crore; land acquisition was at an advanced stage, construction expected to start in Q3 FY18 and operations targeted for early 2020.

• Hyderabad visitor target was ~8 lakh for FY18; a space-themed VR ride was planned there with Rs 40 crore capex, and Recoil was planned for Kochi in FY18.

• A multi-module ERP was under implementation to integrate functions and improve operational efficiency.