Coast Entertainment Holdings FY24 results show positive EBITDA, increased net profit
New attractions saw Dreamworld and Skypoint enjoy increased visitation, ticket sales and revenue last financial year, despite severe storms on the Gold Coast blowing a hole in the peak Christmas season. READ THE RESULTS
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New attractions saw Dreamworld and Skypoint enjoy increased visitation, ticket sales and revenue last financial year, despite severe storms on the Gold Coast blowing a hole in the peak Christmas season.
Results from ASX-listed parent company Coast Entertainment Holdings (CEH), formerly named Ardent Leisure, showed ticket sales were up 3.1 per cent, the highest increase since 2016.
In a statement to the ASX, CEH said its revenue of $87 million was up 3.8 per cent on the previous year and visitation grew by 14.3 per cent.
Net profit was up 99.6 per cent to $2.6 million – from a modest $664,700 the previous year.
The group overall recorded its first positive earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding specific items, since the 2016 ride tragedy.
SkyPoint achieved record earnings while Dreamworld had its highest YoY increase in ticket sales since 2016.
Visitation at both attractions for the start of the current financial year already showing strong year-on-year growth.
EBITDA were up 56 per cent for the theme parks and attractions division.
CEH said its YoY revenue growth came despite the previous year benefiting from $2.6 million in Covid stimulus payments.
The launch of new attractions, including Kenny & Belinda’s Dreamland precinct, the Dreamworld Flyer and the Wiggles Big Red Boat Coaster, was credited with the higher visitation.
A shift in spending from one-day tickets to annual passes “has driven repeat visitation, albeit with some dilution to per capita yields”, the company said.
“SkyPoint, which was previously heavily reliant on international business, continued to perform well despite international visitation remaining below historical levels,” it said.
“The business has delivered record revenue and EBITDA performance in the year, driven by ongoing focus on driving attendance and yield in local and interstate markets and gradual recovery in international visitation.”
The statement said costs had been squeezed by 22.6 per cent thanks to a head office restructure and a 50 per cent cut to directors’ fees.
Group CEO Greg Yong said consumer businesses were challenged by the economic landscape last financial year.
“The two severe weather events during the peak summer trading period added further challenges to FY24 trading performance,” he said.
“Nevertheless, we achieved growth in key financial and non-financial metrics, including strong guest satisfaction scores, despite Dreamworld being impacted by significant construction activity throughout the year.
“The growth in attendances demonstrates that our new products and services are resonating well with our guests.”
The company sustained more than $2 million damage and loss of income in the Christmas and New Year’s storms and their resulting power outages, and had received $700,000 in insurance payments last financial year.
A further $1.6 million of progress payments had been received in the current year.
Dreamworld was forced to close for three days, and Whitewater World for five days, over the peak season.
As at 25 June 2024, the group held $89.2 million cash. It paid out $18 million to shareholders in buybacks throughout the year.
Chairman Gary Weiss said the company was committed to restoring value for stakeholders.
“Looking ahead, we remain focused on unlocking further potential value, underpinned by the opening of new attractions including the new Rivertown precinct, the return of international visitors to historical levels, and optimisation of the Group’s land holdings
“These opportunities are expected to enhance our operational landscape and position the group strategically for continued growth.”
Shares in CEH were trading at 51c on Wednesday morning.
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