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No decision to start new projects in FY22, focus on business revival, says Wonderla Holidays MD

Company will prefer to do their own projects which includes launching a park in Chennai for which Wonderla Holidays will be investing Rs 300 crore.

November 11, 2021 / 06:02 PM IST
After seven months of shutting shop, Wonderla Holidays' Bengaluru (dry) park had reopened last year in November followed by Hyderabad park in January.

After seven months of shutting shop, Wonderla Holidays' Bengaluru (dry) park had reopened last year in November followed by Hyderabad park in January.

 
 
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Amusement park company  Wonderla Holidays earlier this year had laid out its expansion plans, including acquiring existing theme parks and starting its own new properties.

However, the company's MD, Arun K Chittilappilly during Q2 FY22 investor call said that this financial year there is no decision regarding starting new projects and that the focus is on business revival.

In terms of acquisition, Chittilappilly said that there are a lot of amusement parks that have come up for sale like Nicco, couple of parks in Delhi, there is Imagicaa in Mumbai, another small park in Mumbai and a park in Tamil Nadu.

"When we evaluated most of them were not fitting our business model which prevented us from going forward. Also, we are willing to do revenue share. We don't want to buy any of them out. We have put forth proposals but it is a long drawn process," he added.

He also said that the company will prefer to do their own projects which includes launching an amusement park in Chennai for which Wonderla Holidays will be investing Rs 300 crore.

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The firm is also looking to start a park in Odisha but Chittilappilly said that currently they are not able to do it because of the focus on footfall revival.

In terms of recovery on both business as well footfall front, the Bengaluru and Hyderabad parks of Wonderla Holidays in the second quarter of FY22 saw footfalls higher than pre-COVID levels, noted Satheesh Seshadri, CFO during the investor call.

He also said that the festive period gave a strong boost to overall business as September alone contributed to 2/3rd of footfalls and revenue in Q2 FY22.

While footfalls are seeing strong recovery, group bookings are yet to see revival. "Groups are not back to pre-COVID levels. Group bookings pre-pandemic in second and third quarter would be 30-40 percent which this year is around 10 percent," said Chittilappilly.

In terms of average ticket price (ATP), Seshadri said that during the current quarter ATP was Rs 847 as against Rs 796 in Q2 FY19-20. And spend per head was Rs 261 in Q2 FY22 as compared to Rs 278 in Q2 FY19-20.

When it comes to ticket prices, Chittilappilly said that they are planning to do another price hike in Q3. "We have headroom to do this as we have not reached pre-covid prices," he said.

Seshadri added that except for Bengaluru park, ticket prices at Kochi and Hyderabad parks are same as pre-COVID level.

For Bengaluru park, Chittilappilly said that the ticket prices are four to five percent lesser than pre-COVID prices.

Overall, he said that the company is confident that the footfall will show an uptrend across all the locations in the ensuing quarters.



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Maryam Farooqui
first published: Nov 11, 2021 06:02 pm
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