Observations from the recent park visits -
Footfalls more than usual given the price hike
F&b prices increased by 10% across
Co organising more after park activities like sunburn, NYE
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I see you are the one who always visits Wonderla!! Investor ho tho aisa 
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Hi All,
Would like to get some info on new parks timelines in Odissa and MP. By when the co is expecting to set up these plants? Also, what would be the scale of these plants - will they be similar in size as Bangalore or smaller?
Thanks much,
Mukul
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Try going over the concalls. They have a lot of info available for you to study.
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Hi Mukul,
They do not have colour on that in the public domain< as far as I know>.
a) However parks usually 2-3 years to fully setup once the land is handed over.
b) Expect them to start at a significantly smaller scale- the management in its commentary has earlier talked about parks taking time to mature.
Hope this helps!
Thanks,
Sushant
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Hi
@fundoo
The concalls do talk about the business model.
The Odissa park is an asset-light( low investment) model.
MP park is too early to talk about but the management did comment about the Chennai park and is hoping to get some positive updates.
Thanks
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Results for q3
Markets didnāt react a lot to the last set of results, will they this time?
| Results | 31-Dec-22 | 30-Sep-22 | 31-Dec-21 | Pre-pandemic | 31-Dec-20 |
|---|---|---|---|---|---|
| Revenue | 11,319.00 | 6,064.00 | 4,830.00 | 7,200.00 | |
| Other Income | |||||
| PBT | 5,239.00 | 1,441.00 | 648.00 | 2,700.00 | |
| PAT | 3,890.00 | 1,047.00 | 456.00 | 2,100.00 | |
| EPS | 6.88 | 1.86 | 0.80 | Guess-> | 4.38 |
| Growth | QonQ | YonY | |||
| Revenue | 86.7% | 134.3% | 57% |
Invested. Please recheck the numbers above for your own sake.
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Wonderla came with very good numbers.
Outlook is promising.
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Yet another steep price hike taken by the company in peak season 1749/1649 compared to 1300 per head last year across all three parksā¦ But this year footfalls may fall due to last year pent up demand and also due to price hikeā¦
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This is a good company with a great management. There are a lot of valid points about the merits, but the business model has its risks. Physical nature of business (disruption due to political events, monsoons), health risk (COVID and before that Nipah virus outbreak), expansion risk (they have not been able to grow beyond the 4 park limit), regulatory risk (every state has lots of rules), etc.
Disclosure : invested and holding since 2018.
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The return ratios will always be meh because of the asset heavy nature of the business. Operating leverage cuts both ways.
Leased land or not, it takes time to put up new parks.
Good management doing most things right (taking over F&B, pivot to digital marketing, organizing occasional big musical events, etc). But their attempts to get management contract on profit sharing basis at parks owned by others havenāt borne any fruits so far.
Itās at best a decent business, but not an exceptional one.
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Blockbuster numbers from Wonderla. Q4 which is typically considered a muted quarter has delivered a revenue of 99 Crore and a normalized profit of 26 Crore (excluding one time gain of 8.8 Crore from the reported profit for the year).
Normalized EPS for the year is > Rs. 24.
See the results here.
AJ
Disclosure: Remain invested.
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Concall Highlights -
Record breaking quarter and year.
Expecting 10 % growth YoY in coming Q1 quarter on higher base.
Positive Surprise- Chennai Project got 10 year tax holiday approval on Local body tax(10%) which is effective after the commencement of operations and was long pending due but shared hesitantly in the concall.
CFO Satish Seshadri has resigned
Bhuvaneshwar project started and to be completed by FY25.(150 Cr capex)
EBITDA Margins are at peak and to remain more or less same for coming years.(40-45)%
Co working on becoming less seasonal and generate more consistent revenues.
Disc - Invested
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10% growth for Q1 would be fantastic. The night events and shows will add more colour to the park and will start attracting new set of crowd - additionally such events will automatically create incremental demand for rooms as well. The medium term strategy for existing parks seems to be convincing. I remember the management talking about building resort with in the Hyderabad park as well - did we hear any update on that?
AJ
Disclosure: Remain invested - added yesterday after seeing the results. Views are biased.
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Approval received from TN government waiving Local Body Tax (LBT) of 10% for a period of 10 years from the commencement of commercial operations. One more uncertainty is behind for the company. Stock is up 4% following the news.
See the press release here.
AJ
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Letās hope a big player doesnāt get in to spoil the Wonderla party. Also, seems like this will be a hard business to scale. On the other hand, it seems like a lot of good news in a short span of time for the company. So letās hope they will be able to keep the momentum going. As they are spreading out in several cities, seems like they need a good team with a deep bench at the top to scale properly. Thank you for the link to the finshots article!
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