Wonderla Holidays shares plunge 6% as profit sheds 25% in Q1, revenue drops 6%; check details

The amusement park company’s consolidated profit after tax (PAT) slashed 25.1% on a year-on-year (YoY) basis to ₹63.2 crore in the first quarter of the current financial year, compared to ₹84.47 crore in the same period last year.

The company’s revenue from operations also suffered in the June 2024 quarter, declining 6.4% year-on-year to ₹172.9 crore from ₹184.6 crore in the corresponding quarter of the previous fiscal year.

Wonderla Holidays has been facing sluggishness in discretionary spending following a surge in 'revenge tourism' straight after the COVID-19 pandemic lifted in financial years 2023 and 2024. It has been actively focusing on boosting non-ticket revenues and attracting a larger share of retail footfall.

The company’s accumulated footfall dropped by 9% on June 30, 2024, and ended the quarter at 10.02 lakh, as against 11.02 lakh in the year-ago period. The reduced footfall contributed to poor financial numbers for the quarter under review.

Wonderla attributed this fall in footfalls to an unprecedented heatwave, water shortages, and disruptions related to ongoing election activities, especially in key markets like Bangalore and Kochi. It is primarily focused on cultivating higher-spending retail customers rather than groups.

On the operating front, Wonderla Holidays’ Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell 21.7% YoY in Q1 FY25 to ₹95.96 crore compared to ₹122.5 crore in the quarter ended June 30, 2023. The EBITDA margin, too, witnessed a significant contraction to 54.1% in the quarter, which was under focus from 64.4% in the year-ago period.

Not just the EBITDA margin, Wonderla Holidays’ PAT Margin shed to 35.6% in Q1 FY25 from 44.4% last year.

The company has stated that its creative and innovative market strategies are set to increase footfalls continued with festival and event-based campaigns going forward.

Wonderla Holidays rolled out its newest amusement park in Bhubaneswar, Odisha, on May 24, 2024. This is the company’s fourth park in India, after the ones in Bengaluru, Hyderabad, and Kochi. The Bhubaneswar park has reportedly exceeded expectations, with a great footfall of 70,000 since its inception.

Shares of the amusement park company closed 4.03% lower at ₹847 per piece on the NSE.