Imagicaaworld Entertainment Limited Business Update Conference Call Summary
Acquisition Overview
• Date: February 19, 2024
• Total Investment: Rs. 630 crores for four operational parks and Rs. 140 crores for an upcoming water park in Indore.
• Acquired Parks:
• Two water parks
• One amusement park
• One devotional theme park
• Portfolio Expansion: Now includes eight parks across five locations.
• Expected Footfall: 2.8 million visitors.
• Projected Revenue: Over Rs. 400 crores.
Strategic Vision
• Consolidation Goal: Aim to consolidate park businesses under one entity to become the largest player in India's entertainment sector.
• Management Insights:
• Jai Malpani emphasized growth and territorial expansion.
• Mayuresh Kore introduced a revamped management team and improved financials.
Financial Details
• Acquisition Structure: Debt-free and cash-free transaction over 30 months.
• Revenue and Profitability: Acquired parks reported Rs. 148.7 crores in revenue and Rs. 84.6 crores in EBITDA.
• Funding Sources: Internal cash flows, debt, and potential equity.
• Debt Projections: Expected to remain below 2x-2.5x EBITDA.
Operational Plans
• Integration Start Date: April 1, 2024.
• Marketing Strategy: Expenses to remain below 10% of sales, focusing on digital media.
• EBITDA Margins:
• Devotional park in Shirdi: 30%-40%
• Indore park: 40%-45%
Land and Future Growth
• Land Acquisition: All acquired lands are freehold, totaling 61 acres.
• Future Acquisitions: Open to acquiring additional parks, potentially funded through debt and equity.
• Cash Flow Management: Sufficient cash flow expected to meet payment obligations during acquisition.
Cost Synergies and Branding
• Cost Savings: Potential savings of 10-15% from operational consolidation.
• Brand Strategy: Maintain independent identities for parks while selectively using the Imagicaa brand for larger projects.
Future Plans
• Expansion into New Markets: Targeting Tier-I and selected Tier-II cities.
• New Attractions: Introduction of state-of-the-art attractions at Wet N Joy.
• Long-term Vision: Exploring land parcels in Ayodhya, Dwarka, and Varanasi for future devotional parks.
Conclusion
• Call Wrap-Up: Jai Malpani thanked participants and invited further inquiries through Investor Relations Advisors.