Parques Reunidos has renegotiated its debt, achieving a €2 million per annum saving in financing costs. The leisure park operating group has also announced 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 million had 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 the first quarter of financial year 2016/17 reporting revenue 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 41 per 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 continuing its international expansion with the recent opening in Vietnam of “Dragon Park”, the largest theme park in Southeast Asia, and motiongate in Dubai.
Parques Reunidos renegotiates its financing costs and saves 2 million Euro per year
