A warm welcome to the 16th annual general meeting of the company.
It is my privilege to address you through this letter, after taking over as Chairman of the Board from my predecessor Mr.George Joseph. George and
I had a smooth transition during November, 2017. I am glad that we have been able to retain his experience and leadership with Wonderla. I would like to thank him for accepting the Board’s request to continue with the company as Executive Vice Chairman.
My journey with Wonderla began on an exciting note. In the first few days after joining the board of the company, I had visited Bangalore and Hyderabad Parks. During these visits, I made it a point to experience the park as an external visitor rather than Chairman of the company. These visits provided memorable experience for me. Later, I visited our park at Kochi with my family including grandchildren. True to the theme of this report, I found the parks ‘delivering experience’ in all aspects such as courteous staff, exciting rides, quality food at affordable rates, clean and hygienic environment.
Company’s performance during FY 2018 had been a mixed bag. Revenue went up marginally -approximately 3% over previous year to Rs.2705 lakhs. This subdued growth was primarily due to the decline in number of visitors by 6.5 % compared to last year.
One of the major factor for this decline was increased ticket price in the first two quarters of the year while switching over from service tax to GST. During the 4th quarter we could stabilize the price factor and I hope we will have an improved flow of visitors in the coming quarters.
The board of directors of the company has recommended a final dividend of Rs.1.50 per equity share of the face value of Rs.10 subject to the approval of the members in the forthcoming annual general meeting.
A Strong Wonderla
Ethics and governance are the founding values at Wonderla.
Our company has an experienced board, innovative senior leadership and an enthusiastic - mostly young staff. We give utmost importance to high operating standards and practices.
Health and safety of visitors and employees and commitment to the environment are fundamental to our business model. While the external environment tends to be unstable at times, the company over the years have exhibited its ability to have an unwavering internal environment by way of innovation, cost control ,sense of urgency and control over operational aspects.
The development of amusement parks is one of the factors in the development of the hospitality and tourism industry worldwide. Proactive government policy factors play a big role in the success of amusement parks industry which is in its early stage of development in India.
Amusement parks apart from an affordable - exciting leisure option for the middle class, also give employment opportunity to many semiskilled and unskilled youth especially from rural areas and small towns. It is a major trigger for indirect employment and small business opportunities for many people in the vicinity of the park.
When more and more people are getting glued to electronic gadgets and tend to remain in their personal space, amusement parks like Wonderla give an opportunity for families and friends to come together, have fun and frolic and experience togetherness. This in itself cannot be considered as a luxury . It is a facility which is not available in several municipal areas .Therefore, Government and local bodies should provide a reasonable tax structure for amusement parks industry , making it affordable to common people and attracting further investment.
During the year our company along with our industry peers had engaged in continuous dialogue with the Government on the 28% GST factor which had adversely impacted our industry. The rate was reduced to 18% in January, 2018. On behalf of the company and industry, I thank the GST council for reducing the GST rate. We have passed on the benefit of tax reduction to our visitors.
The Amusement Park Industry Association is in talks with Government for modifying certain unaffordable local levies and your company is an active participant in this process.
Wonderla’s management team and employees are the foundation of delivering experience to our visitors . Together we will continue to drive the company’s progress.
Our Social Initiatives
Social responsibility is our founding principle envisioned by our promoters. Wonderla since its inception has been involved with various community development programs.
As part of the CSR initiatives the company allocates the annual CSR outlay directly to the beneficiaries as well as through donations to NGOs.
During FY18 the company spent Rs.124 Lakhs towards various CSR initiatives which includes Education, Healthcare, community developments and donations to NGOs for providing assistance to orphanage homes, old age homes & child welfare organizations.
On behalf of the Board of Directors and every member of Wonderla team, I wish to gratefully acknowledge the support and confidence of our Shareholders, Patrons, Investors, Regulators, Financial Institutions, Bankers and Vendors. I would also like to congratulate each and every member of Wonderla Team for their sincere and committed contribution. I look forward to their continued support.
My colleague Mr Arun Chittilappilly will elaborate further on our FY18 performance and operational strategies.