Parques Reunidos hasrenegotiatedits debt, achieving a €2 million per annum saving in financing costs. The leisure park operating group has alsoannounced revenue growth for the first quarter of 2016/17, and reaffirmed its strategy for expansion.
Debt Renegotiation
On January 31, 2017 the syndicated debt in the company's loan amounted to €575 million and €28.3 millionhad been drawn from the €200 million credit facility. The term of the loan has also been extended by 9 months.Q1 Revenue Growth
Parques Reunidos grown revenue by 7 per cent in thefirst quarter of financial year 2016/17 reportingrevenue of €70.5 million. This growth has been attributed to expanding the season with events, successful campaigns around holidays and increasing loyalty with increasing penetration of season passes.EBITDA showed improvement of 41per cent at €-1.9 million.
Growth Strategy
Although still reporting losses, Parques Reunidos is driving forward its growth strategy with investment of €33 million four projects including Parque Warner (Spain) and Slagharen (Netherlands).The company is also in negotiations to open up to 20 mall entertainment centers. This is in addition to the five deals already agreed which will open over the next two years: four under the Nickelodeon brand in the malls of Thader (Murcia), Xanadú (Madrid), Intu Lakeside (London) and Dolce Vita Tejo (Lisbon)as well as an aquarium at Xanadú.
Parques Reunidos is continuingits international expansion with the recent opening in Vietnam of “Dragon Park”, the largest theme park in Southeast Asia, and motiongate in Dubai.
Rachel Read
Rachel is co-founder and strategic director at blooloop. She has a degree in engineering from Cambridge University, is a Chartered Accountant and has certificates in Sustainability Leadership and Corporate Responsibility from London Business School, and Sustainable Marketing, Media and Creative from Cambridge University's Institute for Sustainability Leadership (CISL). Rachel oversees our news, events and sustainability.
