Shares in Dreamworld parent company Ardent Leisure soar after HY22 results, net loss of $36.8m
Shares in Dreamworld owner Ardent Leisure have soared despite it posting an eight-figure loss for the first half of the financial year. Here’s why
Business
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SHARES in Dreamworld owner Ardent Leisure have soared after it revealed it had doubled its revenue and slashed net losses in the first six months of the financial year.
Shares in Ardent closed Friday’s trade 17.2 per cent higher at $1.57 after it announced a net loss of $36.8 million, down from $82.3 million at the same time last year.
Strong performance of its US-based Main Event business, which yielded a 109.1 per cent increase in revenue to $136.2m (US$98.4m), boosted the group’s operating revenue to $275.5m, a 100.2 per cent increase.
Despite increased earnings off the back of higher pass sales and improved attendance compared to last year, the Australian theme parks and attractions posted a $12.2m half-year loss, up from $3.7m at the same time last year.
The result was impacted by a $6m decrease in government grants which boosted last year’s earnings.
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Ardent Leisure chairman Gary Weiss said the opening of the much-anticipated Steel Taipan rollercoaster had been well-received.
“The recent reopening of Queensland borders, easing of restrictions and successful launch of the Steel Taipan rollercoaster in December 2021 has seen the Theme Parks & Attractions business pick up demand in both local and interstate markets during the latter part of the period, however this was somewhat dampened by a surge in Omicron cases and impediments to travel related with state government COVID-19 testing requirements,” Dr Weiss said.
Ardent’s theme parks and attractions chief executive officer Greg Yong said the Omicron wave had foiled optimism after the re-opening of the Queensland border.
“Despite this, the business has seen increased ticket sales and attendances for the period, with January and February results suggesting demand is improving for leisure experiences,” he said.
“While it was pleasing to see our businesses operational for most of the half, demand was significantly impacted due to the Delta wave and associated border and public health restrictions.
“Although the businesses continued to incur significant costs while trading, this was not supported to the same extent seen in the earlier stages of the pandemic when the Australian Government-subsidised businesses through the JobKeeper scheme.”
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