Wonderla Holidays Limited

Wonderla Holidays reported a Q3 FY25 revenue of INR121.5 crores, marking a 1.7% year-on-year degrowth. EBITDA for the quarter stood at INR42.2 crores, a 30.3% decline, resulting in an EBITDA margin of 33.3%. Profit after tax (PAT) was INR20.3 crores, down 45.7% YoY, with a PAT margin of 16.1%. For the nine-month period, revenue was INR361.8 crores (down 5.6%), EBITDA INR140.9 crores (down 32.8%), and PAT INR98.3 crores (down 32.8%). The average revenue per user (ARPU) for Q3 was INR1,272, and for 9M, it was INR1,472.

Q3 footfall was 9.18 lakhs. Hyderabad Park achieved its best-ever Q3 in 8 years, with 3.28 lakh visitors, driven by strong group footfalls. However, Bangalore Park recorded 2.99 lakh visitors and Cochin Park 2.57 lakh visitors, both experiencing lower turnout due to external factors. Bangalore was impacted by unexpected monsoon floods in October, while Cochin faced a meningitis issue that deterred school groups. The newly launched Bhubaneswar Park saw 34,000 visitors in Q3, affected by cyclone events and the market's high seasonality in its initial year.

The Chennai Park is now expected to commence commercial operations by December 2025, a delay from the initial June/July 2025 target. The extension of the Bengaluru resort is anticipated to launch by the beginning of the next financial year. Management estimates a Tier 2 city park costs around INR200 crores, with 60% allocated to rides, and a large city park around INR500 crores. The company plans to spend approximately 10% of its revenue on sustaining capex for ride expansion and restaurant building in existing parks.

Wonderla successfully completed a QIP, generating significant interest from marquee investors. Approximately 50% of the QIP funds will be utilized for the Chennai project, with the remainder allocated to other new projects and enhancements in existing parks like Bangalore. For future projects beyond the current pipeline, the company intends to fund them through a combination of internal accruals and debt, with debt comprising about 30% of the total spend.

Management noted that customer spend per head (non-ticket revenue) grew by 9% in Q3 and 12% for 9 months, reflecting successful efforts to boost non-ticket revenue. The company is focusing on increasing online bookings, with over 50-55% of general footfall now pre-booked, to reduce dependence on last-minute visits and mitigate weather impact^🌐s. The long-term goal for Bhubaneswar Park is 5-6 lakh footfalls within 4-5 years, with a breakeven point of 2-2.5 lakh footfalls expected in the next financial year.

Wonderla is on a digital transformation path, having recently revamped its website and in the process of upgrading ticket booking and POS systems to enhance both in-park and digital engagement. The company relaunched its mascot Chikku with a new attraction in Kochi Park, which will be rolled out to other parks. Vibrant events like WonderCon Bhubaneswar, Halloween in Bangalore, and festive celebrations were hosted to maintain footfall and enhance guest experience.

Despite the Q3 challenges, management remains bullish on the long-term growth prospects, citing India's young population and the lack of other amusement parks in their operating markets. They aim to achieve more than 1 million footfalls per park on average, with a long-term EBITDA margin expectation of 35-40%. The company is actively pursuing geographical diversification and adding new attractions across all parks to accommodate more visitors and market effectively, especially for the upcoming summer season.