RESULTS PRESENTATION FOR THE OCTOBER TO DECEMBER PERIOD (Q4) 27 February 2019
Key Highlights ➤ The BoD has appointed Jose Diaz as CEO of Parques Reunidos ➤ The company is working on a new Strategic Plan that will be presented to the market in the coming months: • Back to basics 2019 Key Actions • Focus on delivering organic growth • Integrate and achieve the expected returns on Tropical Islands acquisition • Delivering returns on capex investments • Balance sheet deleverage ➤ Change of fiscal year from ending at September 30 th to December 31 st • The October to December period becomes the Q4 FY18 of our new fiscal year ➤ Good performance during this quarter: • Revenue increased by 6.4% on a like for like basis fostered by a higher attendance and percaps Results Highlights • Revenue growth during off season events reached 6% • Season passes sales grew by 13% improving earnings visibility for the peak season • Q4 represents c.13% of the Group’s annual revenues ➤ Parques Reunidos is early implementing IFRS 16 Q4FY18 results presentation 2
+6% Like-for-Like Revenue Growth Q4 Like-for-Like (1) Q4 Reported Figures + 6.4% + 4.5% 2,607 2,772 2,494 2,606 Visitors ('000) Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 76.9 Revenue (€ MM) + 11.8% 72.7 + 6.4% 68.4 68.7 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 EBITDA (€ MM) Recurrent (2.5) (2.8) + 17.3% (4.1) (4.9) (1) Like-for-like figures: Assumes 2018 constant FX rates and same park portfolio perimeter (excluding Teleférico de Madrid concession, the acquisitions of Belantis and Wet’N’Wild Sydney; and the disposal of Mar de Plata) Like-for-like figures also includes IFRS 16 impact both in Q4 FY17 and Q4 FY18 Q4FY18 results presentation 3
Delivered revenue growth across all regions Revenue Bridge 0.5 72.7 3.0 0.5 68.7 68.4 0.4 (0.4) (1) Q4 FY17 Reported FX and Changes in Portfolio Q4 FY17 like-for-like Spain Rest of Europe US HQ Q4 FY18 like-for-like Perimeter (1) Headquarters include management contracts and indoor entertainment centers businesses Q4FY18 results presentation 4
Spain: Delivered a Strong Performance ➤ Record revenue achieved in Q4 Revenue ( € MM ) Recurrent EBITDA ( € MM ) • +1.7% like-for-like revenue growth driven by percap increase 21.1 +1.7% 20.8 (over a historical all-time high revenue achieved in the same period during 2017) +21.2% 5.1 4.2 ➤ Growth driven by: • Strong performance during off-season events (Halloween and Christmas) reaching a revenue growth of 14%, with a remarkable performance of Warner • This has more than offset a slow performance in October Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 • Increase in the sale of season passes of c.16% Visitors (’000) Percap ( € ) ➤ EBITDA growth of 21.2% to reach €5.1 MM • EBITDA positively impacted by the deferral of some expenses (1.7%) +3.5% that will be accounted over the next quarters 1,038 20.7 1,020 20.0 ➤ This quarter represents c. 14% of the region annual revenues Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Like-for-like figures also including IFRS 16 impact both in Q4 FY17 and Q4 FY18 Q4FY18 results presentation 5
RoE: Good Revenue Performance Recurrent EBITDA ( € MM ) ➤ Revenue has grown by 1.8% like-for-like Revenue ( € MM ) • Growth mainly driven by a higher percap • Strong performance of Central Europe Parks (Movie Park reached a new all-time high during Halloween) +1.8% 27.9 27.4 • Revenue from off-season events grew by c.7% 2.6 • Season passes sales increased by 17% driven by volume (21.2%) 2.1 growth ➤ EBITDA has decreased to €2.1 MM • Mainly explained by the mix of parks opened during the Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 season Visitors (’000) Percap ( €) ➤ This quarter represents c.13% of our annual revenue in RoE +0.4% 1,012 1,007 +1.4% 27.6 27.2 Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Like-for-like figures also including IFRS 16 impact both in Q4 FY17 and Q4 FY18 Q4FY18 results presentation 6
US: Broadly flat performance but only 10% of annual revenues ➤ New reporting period for US to adapt to the new fiscal year Revenue ( € MM ) Recurrent EBITDA ( € MM ) change • Two weeks added in this quarter Q4 FY17 Q4 FY18 21.6 • Q4 FY17 going from to September 18 th to December 17 th +16.2% 18.6 • Q4 FY18 going from September 17 th to December 31 st ➤ Underlying performance of the business excluding the reporting calendar effect (3.4) (3.8) (12.4%) • Flattish revenue performance • EBITDA increases by €0.7 MM or 21% Q4 FY17 Q4 FY18 Q4 FY18 same reporting period revenues would be of €18.4 MM Q4 FY18 Same reporting period EBITDA losses would be of €2.7 MM ➤ This quarter represents c. 10% of our annual revenues Visitors (’000) Percap ( € ) +14.5% 514 +1.5% 448 41.9 41.3. Q4 FY17 Q4 FY18 Q4 FY17 Q4 FY18 Like-for-like figures also including IFRS 16 impact both in Q4 FY17 and Q4 FY18 Q4FY18 results presentation 7
P&L Summary ➤ P&L affected by the implementation of IFRS 16 Summary P&L Z Q4 FY17 Q4 FY18 € MM (without IFRS 16) (with IFRS16) Var. ➤ Net losses amounted to €45.3 MM, affected by the business seasonality EBITDA (4.9) (4.1) 17.3% ➤ Booked €9 MM of impairments D&A (20.0) (26.0) (29.6% • Related to the Indoor Entertainment Centers, chiefly to EBIT (24.9) (30.0) (20.4%) Nickelodeon Murcia Non-recurrent items (3.8) (6.1) (61.8%) ➤ Non- recurrent items amounted €6 MM including: Net impairments 0.1 (9.2) n.m. • Severance payments • Capital gains from the sale of Mar de Plata Operating Profit (28.6) (45.3) (58.3%) • Advisory fees, provision for bad debt and other concepts Net financial expenses (7.9) (12.1) (52.9%) Exchange gains / (losses) (1.3) (1.0) 24.5% Income tax 7.4 12.6 70.5% Net income (30.4) (45.8) (50.4%) Q4FY18 results presentation 8
Impact from IFRS 16 implementation ➤ Parques Reunidos is early implementing IFRS 16 Comparison on Q4 FY18 figures • Full retrospective method adopted € MM Without IFRS 16 With IFRS 16 Var. • Consequently, the company has calculated newly leased assets and liabilities as if IFRS 16 had applied Recurrent EBITDA (7.1) (4.1) +3.0 since inception • Capitalized contracts with an average life of c.19 years D&A (24.4) (26.0) +1.4 ➤ The impact this Q4 from IFRS 16 implementation: EBIT (31.5) (30.0) +1.4 • €228 MM of new lease liabilities (1) and €198 MM of right-of-use assets Impairments & one-offs (15.3) (15.4) +0.1 • Reduced operating lease expenses by €3 MM • Increased D&A by €1.4 MM as a result of the Operating Profit (46.8) (45.3) +1.6 amortization of the new rights-of-use assets • Increased finance costs by € 2MM Net financial expenses (10.0) (12.1) +2.0 • €0.3MM impact on net losses Exchange/gain losses (1.0) (1.0) 0 Income tax 12.5 12.6 (0.1) Net income (45.3) (45.5) (0.3) (1) Including Warner (already accounted as Financial Leased) total leased liabilities amounts to €291 MM Q4 FY18 results presentation 9
Cash Flow Generation and Net Debt Position ➤ Adjusted Financial Net debt as of December Financial Net Debt Evolution (€ MM) (1) 2018 reached €531 MM • Acquisition of Wet´n´Wild Sydney and disposal of Mar de Plata 591 9 • Forex impact 12 6 33 4 25 531 (4) 506 ➤ Intra-year working capital financing reached €60 MM • Financed through a revolving facility which is not considered as “permanent net debt” ➤ Including the acquisition of Tropical Islands, pro-forma Adjusted Financial Net Debt increases up to €757 MM • Implied leverage of 4.0x Financial Net Acquisitions, Adjusted EBITDA CAPEX Change in Taxes Net Cash Others Financial Net Debt Disposals & FX Financial Net Working Interest Debt (Sept 2018) Debt excluding Capital Expenses (Dec 2018) WC Needs ➤ Intra- year working capital needs: €60 MM (1) Financial Net debt excluding financial leases Q4FY18 results presentation 10
APPENDIX 11
1. Performance by Region – Reported Figures FY Reported Figures GROUP SPAIN REST OF EUROPE US HQ (1) Q4FY17 Q4FY18 Var. Q4FY17 Q4FY18 Var. Q4FY17 Q4FY18 Var. Q4FY17 Q4FY18 Var. Q4FY17 Q4FY18 Var. € MM Visitors ('000) 2,606 2,772 6.4 % 1,123 1,020 (9.2 % ) 1,035 1,085 4.8% 448 607 35.2% - - - - - - 27.0 27.7 2.5% 40.1 39.0 (2.6%) Total Percap (€) 26.4 27.7 5.1% 18.9 20.7 9.4% Total Revenue 68.7 76.9 11.8 % 21.3 21.1 (0.6 % ) 27.9 30.0 7.5% 18.0 23.7 31.7% 1.6 2.1 30.1% (4.9) (4.1) 17.3% 3.9 5.1 31.1% 2.1 2.0 (4.2%) (4.8) (5.0) (2.9%) (6.0) (6.1) (2.1%) Recurrent EBITDA - - n.m. n.m. - n.m. n..m. - - - - % margin n.m. n.m. n.m. n.m. (11.0%) 3.6 2.6 (26.0%) 3.5 3.0 (15.0%) 0.5 0.3 (43.0%) Recurrent capex 8.7 7.7 1.1 1.8 63.8% (1) Headquarters include management contracts and indoor entertainment centers businesses Q4FY18 results presentation 12
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