Ardent Leisure Group half-year results for FY 2019 reveal net loss of $21.8 million in six months

Dreamworld operator Ardent Leisure Group has revealed another net loss as costs from the 2016 Thunder River Rapids tragedy continue to drag on the company’s bottom line.

Dreamworld Tiger "Adira" cools off from the heat in Tiger Islands pool. Pics Adam Head

DREAMWORLD operator Ardent Leisure Group has logged a $21.8 million loss for the first six months of the financial year as costs from the 2016 Thunder River Rapids tragedy continued to drag on the company’s bottom line.

The losses — $6.2 million worse than the same period last year — came off the back of a $38.9 million dive in revenue, largely related to the company’s sale of its marinas and bowling centres.

The result follows a horror previous year for the company, which posted an eye-watering $88.6 million loss for 2017-18. The company did not provide a profit guidance for the full financial year.

Ardent shares had risen 4.55 per cent to $1.495 by noon.

New Dreamworld CEO John Osborne. Picture: NIGEL HALLETT

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Ardent’s theme parks business, comprising Dreamworld, WhiteWater World and Skypoint, reported flat revenue despite lower visitation, as fewer customers paid more than they did a year ago.

Earnings at the theme parks were down 36 per cent, with the parks recording a net loss of $12.4 million, compared to $25.4 million the same time last year, when Ardent was forced to write down the value of Dreamworld by $22.8 million.

The company cited “continued slow recovery following the incident in October 2016, the coronial inquest and reduced ride availability” for the continued losses at the theme parks.

Chinese tourists at Dreamworld Picture: NIGEL HALLETT

The company spent $5.3 million in the six months to December 25 on “Dreamworld incident costs”, after insurance payments had been taken into account, and another $1.9 million on restructuring costs and other one-offs.

Despite an overall revenue slide compared to last year, the company’s ongoing operations logged a 19 per cent increase in revenue, driven by its US-based Main Event business.

More to come