Dreamworld owner Ardent Leisure reports increased revenue and attendance from troubled Gold Coast theme parks
Figures released today show Ardent Leisure’s Gold Coast theme parks are finally recovering, with a number of key factors believed to have driven the turnaround.
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TROUBLED Dreamworld owner Ardent Leisure has reported a massive attendance and revenue bump for the past two months at its theme parks division.
The Sydney-based company, led by chairman Dr Gary Weiss, this morning updated investors on its turnaround strategy following the tragedy at Dreamworld in October, 2016, which claimed four lives.
Since then overall attendance at its Gold Coast attractions and theme parks, which also include WhiteWater World and SkyPoint, has fallen by 1.9 million visits, a drop of $150 million in revenue.
The company has invested considerably in new attractions including the Sky Voyager flying theatre at Dreamworld. It is also constructing six new waterslides at WhiteWater World.
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The new attractions appear to have helped boost attendance.
In an investor presentation to coincide with the company’s AGM this morning, Ardent said trading during the recent school holiday period between September 21 and October 13 has been the best since FY16.
It said unaudited attendance and revenue for its theme parks division was up 21.2 per cent and 17.4 per cent respectively compared to the prior corresponding period.
Investors seemed unmoved in early trade with the stock price steady at $1.185.
Dr Weiss, addressing shareholders this morning, said the company’s financial performance for FY19, for which it released a $60.9 million net loss, did not meet expectations.
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“The group reported a net loss of $60.9 million and continued to be impacted by challenging post-incident trading for the themeparks division, associated incident costs due to the coronial inquest, restructuring costs and further impairment charges at several US entertainment centres,” Dr Weiss said.
The group spent $5.4 million on costs related to the fatal Thunder River Rapids tragedy in 2016, less than the $6.2 million it spent the previous financial year.
Dr Weiss said there has been an “encouraging start” to FY20 with improved trading across the themeparks and Main Event businesses.
“Feedback on the ride (Sky Voyager) has been very positive and it is currently our most popular ride,” Dr Weiss said.
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“Further, in the same month we also announced the construction of a new 1.2km world-class rollercoaster at Dreamworld and a new waterslide complex at WhiteWater World.
“This much needed and overdue investment has heralded a new era for our theme parks business and we remain confident in the long-term potential of the park as a true family entertainment leader in one of Australia’s most popular tourist destinations.”
Ardent is aiming for Dreamworld to break even by the second half of FY20.
However, it said this may be “compromised” if there is a negative impact on trading when the coroner’s report into the Dreamworld tragedy is handed down.
That isn’t expected to happen until next year.
Originally published as Dreamworld owner Ardent Leisure reports increased revenue and attendance from troubled Gold Coast theme parks
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