Wonderla Holidays

newbie_007 · September 26, 2019, 8:30am

Sometimes, proximity of the park might be a good enough reason for the customer to choose the park.

Also, what is the likelihood of Disney coming to India?

It’s an old article from 2013.

A_shah · October 1, 2019, 5:41am

Even i was worried about the same . However i believe Disney opens just 1 park per country . And if any one can get affected , it would be single park models like Imagica whose strategy is to give best possible comprehensive experience at one place while Wonderla is a spread out multi locational park model and at max, one of its locations could be affected . True comparison shouldnt be with Disney but multi location parks like Six flags in US. But overall it shouldnt get affected . Would love to know everyones views.
Disc - Invested . I am not a sebi registered advisor or analyst and am an amateur investor . Standard investment disclosures apply

A_shah · October 1, 2019, 5:52am

Completely agree . The feeling of adrenaline rush etc cant be found in a movie etc so easily

rakesh_4449 · October 1, 2019, 2:46pm

Before considering threat from global players like disney etc, we have to think about these points.

1.Why in India there is no amusement park profitable except wondrela. ?

2.Does it mean India is still not ready for large style park. ?

3.What wonderla is doing special to be profitable (year after year) in a dying industry (dying as far as indian amusement park industry is concerned), industry which is prone to accident. ?

4.Before considering about competition ,let’s think about opportunity size, How many wonderla bangalore or kochi kind of park can India afford to have.

If today ,disney try to open,wonderla kind of mid sized park (40-70 acres), in bangalore . How much will it cost (due to land price, inflation) ,forget about opening large park.Can they compete in pricing and service with wonderla. They can’t, either disney have to suffer heavy loss or they have to charge higher ticket price for even similar experience . Both are win-win situation for wonderla.

Wonderla has large opportunity size to grow ,In next 10-20-30 years there will be multiple city which will emerge like today’s pune, hyderabad.I see it as potential location for new wonderla park.
Wonderla have to keep doing what they are doing , keep increasing cash-flow year after year (increase cash-flow to 200-300 cr) , keep opening new park in every few years ,

I expect them to increase frequency of opening new park,enter into all major city in India so that they can have first mover advantage in terms of land price , inflation , in house manufacturing of rides is already icing on the cake.
Recent corporate tax cut will boost wonderla’s cash-flow by 10-15% , that is very good.

disc: buy and forget kind of investment

A_shah · October 18, 2019, 8:31am

It seems hdfc mutual fund has exited wonderla as per latest shareholdings and Steinberg increased its stake to 6.08 as per stock edge

Hocuspocus32 · October 26, 2019, 2:21am

Chennai Park : Update :Tamil Nadu has
agreed to give exemption to the Company from levy of Entertainment Tax for a period of 5
years commencing from 01 November 2019.

goyal_neelesh · October 26, 2019, 3:30am

This is good news. That said, i think they said in the last concall that it takes 2-3 years to build a park which means that the exemption would in real be for approx 2 years?

Hocuspocus32 · October 26, 2019, 6:09am

Prateek Barsagade: You have covered everything very comprehensively. When do you expect
Chennai park to be operational?
George Joseph: In about 18 to 20 months from the date of commencement of construction, so
hopefully FY2021.

so yes 2-3 years exemption will be there

rakesh_4449 · October 26, 2019, 5:29pm

Arun Chittilappilly was present during inauguration of two new rides, wave rider and drop loop at Wonderla, Bangalore,around dushara festival. It seems he is back from sabbatical,we have to wait for confirmation . Few clicks from the inauguration event.

Link https://twitter.com/Wonder_La/status/1176876560944484354

bmathew · October 30, 2019, 2:26am

… and then he said to the investors , " Take these statements and review it; we have incurred the first quarterly loss of 2.09 Cr .” slowdown blues ??

shankar_1979 · October 31, 2019, 6:42pm

Investor presntation HY 2019-2010.
Key highlights:

Commencing construction of Chennai Project after receiving exemption from Entertainment Tax for 5 years.
Evaluating proposal to develop “asset-light amusement park” in Odisha using leased land.

saninv · November 1, 2019, 8:39am

Wonderla Holidays Q2FY20 Earnings Call Highlights:

Participants:
• Edelweiss
• Spark Capital
• Riddhi Capital
• Rohith Potti
• Sharekhan
• Concept Investwell
• Union Mutual Fund

Business Overview:
 Revenue at Rs 40.8 crore vs Rs 41.3 crore YoY
 EBITDA at Rs 5.5 crore vs Rs 9.1 crore YoY
 PAT at Rs 0.2 crore vs Rs 0.9 crore YoY

ConCall highlights:
 Revenue growth impacted due to lower footfall, extended monsoon and weak demand
 Footfall in Bangalore park declined by 22% YoY due to unfavorable weather condition for outdoor activity
 Kochi park reported 60% growth in footfall on lower base of last year, while Hyderabad park reported 5% footfall growth
 Arun K Chittilappillay will take a call on his full time involvement in the company next year. He was there in the recent inauguration of two rides in Bangalore
 Every year 1.50 crore tourist come to Kerala and around 50 lacs in Kochi; will target tourist in a big way
 Non-ticket revenue declined on account of change in footfall mix; group footfall (school, college, corporate) increased while walk-in footfall decreased
 Payback period for Kochi and Bangalore were 7-9 years
 Wonderla spent Rs 272 crore on Hyderabad park; payback period would be 12% years
 Recently launched two new rides in Bangalore which has been accepted well by the public

Odisha Park update:
• Wonderla has received an offer from the Government of Odisha for setting up an amusement park in the state
• The company identified 4-5 locations then zeroed on Bhubaneswar; the exact location is around 19-20 KMs from NH
• The state Govt. will build 60 feet road from the park to NH. Govt. has offered 50 acre of land for Rs 3 crore on 90 years lease and direct water line from Mahanadi River to the park. The water cost is one tenth of the cost in Hyderabad
• Though Odisha were not in Wonderla’s radar, the offer from the Govt. is good any company is evaluating it
• Initially it will set up Water Park only with few land rides but next year will add some additional land rides depending upon the response from public
• Company will construct Convention centre in third phase and will add a resort in fourth phase
• Odisha Govt. asked the company to complete the project in three years
• Wonderla would spend Rs 75-100 crore in next two years

Chennai Park update:

• The Government of Tamil Nadu has given exemption to the Company from levy of Entertainment Tax under Tamil Nadu Local Authority Entertainment Tax Act for a period of 5 years commencing from 1st November 2019
• Management will meet Tamil Nadu CM and ask to consider the exemption period of five years from the inauguration date of the park
• Wonderla will start constructing the park from January 2020 and will complete the park in next 18 months
• Wonderla would invest Rs 350-365 crore in their upcoming Chennai park and payback period would be 12-13 years

Guidance:
 Wonderla has guided minimum 5% revenue growth for Q3FY20
 ROCE on a long-term basis for amusement park business would be around 12-15% (excluding revaluation of land)

Hiteshsavanth · November 6, 2019, 9:35am

Happened to visit Wonderla, BLR yesterday. Have been a regular visitor, with this being my 7th visit. However, yesterday’s visit was my first on a weekday.

Have also been tracking the stock passively, with no positions.

I was disappointed yesterday at the ticket counter when the lady said their machine was not working and asked me to pay by cash, same with others who purchased the ticket before and after me at the counter.

While it’s possible that it was a genuine case of a glitch, felt it was easily possible for them to maintain parallel books etc.

Not sure if anybody else experienced this.

Else it was a reasonably smooth experience, with the crowd being more than what I expected for a weekday.

babu44b · December 25, 2019, 7:44am

They are also considering a park to be setup in Odisha.
That might be a good decision considering Odisha is growing very rapidly.

Hocuspocus32 · December 28, 2019, 6:28am

Seems some issues are there in the Promoter Group, Mithun has transferred all his shares in the company to his mothers name and he has gone from 11% holdings to 0%

babu44b · December 28, 2019, 12:12pm

Hi,

Thanks for the information but at the end of the day the promoter holding remains the same.so can we assume that there can be some rift between the promoters??

Thanks,
Deb

madhug · January 29, 2020, 8:58am

Latest quarter results doesn’t shown any sign of recovery yet. Topline is not growing, Bangalore park footfall has further dropped by 22%. Bottom line gains are reflecting the reduction of tax rates. No mention about succession plan as well, which the market might be seeing as a concern.

Znilesh · February 13, 2020, 11:53am

Tax Saving: Chennai update
As per the amended Order the Company is exempted from levy of Entertainment Tax for a period of 5 years from the commencement of Company’s commercial operations or 30th September, 2021 whichever is earlier.

bmathew · February 18, 2020, 5:18pm

Earnings call transcript Q3 FY20

Dev_S · February 19, 2020, 6:45am

Wonderla - A good quality moat business - hardly a wealth creator YET - victim of circumstances

Hardly any returns since listing in 2014
Consistency in Operating profit Margin profile around 40% across disruptions (and wonderla had many of them - Demon, Tax rates/GST, Floods, GDP slowdown affecting discretionary spend and so on)
Land bank value across park closer to market cap
Quality of promoter is very good (some family issues may be there but with each park run professionally as P&L with a CEO - promoter hardly has any role to play)

Lets look at triggers lined up - and if they justify holding/investing

Business Model at a very high level - 1 park to 2 park to 3 parks - each park breaking even in 2-3 years and cashflow feeding to next park - story seem to be intact with Hyd ramping up, Chennai and Orissa lined up and mgmt being prudently conservative in debt or any aggression. (waited long to get local tax waived off on chennai, open to low capex model for Orissa)
Alternate revenue models from stable park - Food, Resort and so on, ramping up well after pilot in Bangalore park

Quick peak to medium term on conservative lines (1-3 year horizon)

Kochi and Bangalore - pretty much mature - 6-8% growth in top line and 10-12% in bottomline with Value adds and Realization increase, new rides
Hyd - slightly better than Kochi/Blr - 10-15%
Chennai to start adding from 22 - likely to help rev growth spike once operational

Risks : Tax tinkering, prolonged economy deceleration, accidents on rides

Summary: Land value closer to market cap and 100cr+ cashflow/yr biz is almost free, light moat biz, slow growth biz, consistent OPM and likely to get better with newer low cost parks, quality promoters.

So why on the earth mkt isn’t excited about it?

Inconsistent and vulnerable sales growth
Optically lower key ratios (with assets being locked in land etc)

Can there be value unlocking by creating a vehicle to convert all park assets to lease model(inline with Embassy ReIT) and run an asset light setup??

Invested and positive but searching for answers on opportunity cost.