Dreamworld operator Ardent Leisure writes down value of theme park by $75m 20 months after ride tragedy

ARDENT Leisure’s latest financial update contains more bad news for the struggling theme park operator — more than 20 months after the Thunder River Rapids Ride tragedy that claimed four lives.

Dreamworld has suffered an $86 million hit more than 20 months after the Thunder River Rapids ride tragedy.

DREAMWORLD operator Ardent Leisure is still counting the costs of the Thunder River Rapids Ride tragedy — writing down the value of the theme park by $75 million, more than 20 months after the accident.

The unaudited figure is contained in a financial update released this morning on the ASX.

Ardent says it expects revenue of between $545 million and $550 million in FY18, a pretax loss of between $50 and 55 million, and an after-tax loss of between $84 million and $94 million.

Shares fell 5.5¢, or 1.64 per cent, in early trading, to $1.977.

Ardent declared a full-year loss of $62.6 million for FY17, down from a $42.4 million profit the previous year.

The Thunder River Rapids Ride. Picture: Nigel Hallett

The latest Dreamworld writedown follows another $89 million revaluation in FY17.

Ardent said the themeparks division result (a pretax loss of between $91 million and $95 million) was impacted by a slow recovery following the accident, discounted ticket pricing. and poor weather.

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The company said it expects pretax earnings of between $12 million and $15 million for its Main Event division, which operates its US entertainment centres.

It said impairment charges of $38 million, linked to five underperforming centres, reflected difficult trading conditions.

Thunder River Rapids ride operator Courtney Williams is seen arriving at the inquest into the Dreamworld disaster at the Southport Courthouse.

The financial update follows hearings held at the Southport Coroner’s Court into the tragedy in 2016.

The court heard that Thunder River Rapids ride operator Courtney Williams was told “not to worry” about the fast stop emergency button on the morning of the accident.

Ardent said it expects its full-year results, to be released on August 22, to show a 26 per cent reduction in corporate costs to $12 million.