Wonderla Holidays Q4FY18 Concall Summary


Market update 

  • The annual revenue for the Indian Amusement Theme Park industry has been about Rs.17 billion and is growing at a CAGR of more than 17.5%.
  • The industry is estimated to grow to at least Rs.40 billion by 2020.
  • GST rates on the admission fee have been reduced from 28% to 18% by the GST Council.
  • The company is expecting double-digit growth in the number of footfalls at its parks.

Business overview

  • Wonderla received an aggregate of 2.5 million visitors in the FY2018.
  • The company saw a 5% rise in average ticket revenue per visitor.
  • The company believes that they are placed very well to exploit the industry growth.
  •  Wonderla currently has three operational parks and the fourth park is to be launched in Chennai where they have already acquired 62 acres of land.
  • The company is almost debt-free as of now.
  • Dividend payout order ratio for Wonderla stands at 26.5%.

Financial highlights

Q4 FY2018: 

Wonderla Q4FY18 financial performance.png
  • Company’s revenue decreased by 7.5% year on year from Rs.59.3 crores to Rs.54.92 crores which were driven by 12.1% year on year decline in footfall.
  • Company’s share of non-ticket revenue improved from 25.3% in Q4 FY2017 to 28.7% in Q4 FY2018.
  • In the Q4 FY2018 EBITDA increased by 79.2% from Rs.8.5 crores to Rs.15.2 crores. 
  • Company’s EBITDA margin almost doubled from 14.4% to27.8% in Q4 FY2018.
  • In Q4 FY2018 company’s PBT increased by 58.4% from Rs.4.2 crores to Rs.6.7 crores.
  • PAT grew by 9.1% from Rs.3.3 Crores to Rs.3.6 Crores.
  • In Q4 FY2018 cash PAT increased by 37% from Rs.9.8 Crores to Rs.13.4 Crores are indicating a continued generation of healthy operating cash flows.
Wonderla Revenue Analysis Q4FY18.png
Wondrla Q4FY18 Revenue Analysis.png

Pricing in FY2018

  • Price was changed three times, one pricing for April to June when Wonderla was in service tax regime; another pricing was there from July to February because of GST for amusement parks was brought down in February.
  • Wonderla’s goal is to maintain the price. However, a 2% overall increase has been taken compared to the previous year.

Tax rates charged in Q1 FY2018:

  • In Q1 FY2018 each park had a different way of charging taxes.
  • In Bengaluru last year Wonderla was charging only 5% entertainment tax, and a provision for the service tax was made.
  • There was no entertainment tax in Kochi, so only service tax was levied.
  • In Hyderabad, the entertainment tax was 20%, and the service tax was 15%. 

Resort business

  • 4% to 5% of the total business of Wonderla comes from resorts.
  • There has been a change in the strategy to move towards retail rather than corporate.
  • Wonderla in tying up with PayTM, Cleartrip and all the online OTAs.
  • The company has observed a bigger jump in the number of direct bookings because of the shift from corporate to retail.

Bengaluru park

Wonderla Bangalore park Q4FY18.png
  • Wonderla has seen a declining footfall in the Bengaluru park; a substantial decline has been observed in the group.
  • The company has stated pricing as the reason for the decline in the footfall. 
  • Bengaluru park is at least 15% more expensive than the other two parks owned by Wonderla.
  •  There has been an increase of Rs.200 in the price of a ticket from FY2017 to FY2018.
  • The footfall in the Bengaluru park has been about 10 to 12 lakhs.
  • Replacement cost for Bengaluru park is more than Rs.350 crores.
  • Company’s investment for the Bengaluru park is about 150 to 160 crores.
  •  In the starting, the Bengaluru park had about 40 to 45 rides now that number has increased to 62 in which 41 are dry rides, and 21 are wet rides.
  • Wonderla is developing a digital wallet system through which people can spend more money inside the parks. This system is piloting in Hyderabad and Bengaluru park.

Kochi park

Wonderla Kochi park Q4FY18.png
  • The company does not see a huge impact of the Nipah on the footfalls of the Kochi park.
  • In the beginning, Kochi park had about 10 to 15 rides the number has grown to 56 rides, out of which 22 are wet rides, and 34 are dry rides.
  • The company is looking for aggressive growth in footfalls for the next couple of years.
  • The company invested around 120 crores for the Kochi park and now sees its replacement cost to be around Rs.350 crores.
  • The company sees Kochi as the most price sensitive market and finds that group sales are higher in proportion.
  •  Kochi park saw a footfall of about 10 to 12 lakhs.

Hyderabad park:

Wonderla Hyderabad park Q4FY18.png
  • Hyderabad park was started in 2016 and Company has invested about 280 to 290 crores for the park.
  • For the FY2019 Q1 company has observed some good growth in Hyderabad, it is growing at around 17% regarding footfalls.
  • The company has beaten its estimates regarding the revival of footfalls at the Hyderabad park.
  • Wonderla has started a new big ride in Hyderabad, that ride does not exist in Bengaluru and Kochi park.
  • Hyderabad park currently has a total of 44 rides out of which 18 are wet and 26 dry rides.
  • The company is slowly spreading out to nearby towns like Rajahmundry and Vijayawada to increase the footfalls.
  • The reason for not getting a relatively healthy nonticket revenue has been stated that the base year was already high in Hyderabad because the park went for a dress code in the starting (2016) itself whereas, other two parks has implemented in the later part of the previous year.
  • Wonderla has started the piloting of the new digital wallet system in Hyderabad.
  • Hyderabad park saw a footfall of about seven lakhs, and the company targets a 13% footfall growth in the next year.

Chennai project

  • Company has decided not to build the park until the local body tax issue is resolved.
  • Wonderla is looking for a slight relief from the Tamil Nadu Government after which it will start the construction of park of which the design is almost complete.  


  • The company has put its utility cost under scrutiny.
  • The company is doing solar power purchase and have installed a solar panel, so utility costs are coming down
  • People cost for the company which is their highest cost is also coming down.
  • Spares and maintenance cost has also come down compared to the previous year.
  •  The company has been able to bring the marketing cost down because it is trying to do more performance-based marketing and referral-based marketing.
  • Wonderla made a movie ‘’The Mission Interstellar ride’’ at the cost of about Rs.3.5 crores.


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