MovieWorld, Sea World, Top Golf operator Village Roadshow posts slim profit despite GC2018 harm

THEME Parks operator Village Roadshow has returned from last year’s $66.7 million loss in a narrow turnaround. The company says two destructive major events held them back from further success.

Polar Bear Mishka celebrates her 1st Birthday with mum Liya at Sea World. Picture: NIGEL HALLETT

THEME Parks operator Village Roadshow has returned from last year’s $66.7 million loss to post a narrow profit, the company’s results revealed this morning.

The MovieWorld, Wet’n’Wild, Top Golf and Sea World operator netted $200,000 profit in the year to June 30, a result it said was pummelled by the misfired Commonwealth Games and the ongoing impact of four deaths on a ride at rival theme park Dreamworld.

The profit widens to $7.5 million results when the $100 million sale of the company’s Oxenford land, and the $40 million sale of its Wet’n’Wild in Sydney, are taken into account.

Pre-tax earnings were sharply down on the previous year, diving from $136.3 million to $90.9 million.

Village is continuing to be harmed by the fatal tragedy at Dreamworld, owned by rival operator Ardent Leisure, which yesterday announced an eye-watering $88.6 million loss for the year — $26 million higher than the previous year’s $62.6 million loss.

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Leonard Hebert (front left) has helped VRL’s earnings, riding the DC Rivals hypercoaster 819 times. Photo: Richard Gosling

“The result continued to be primarily impacted by the Dreamworld tragedy,” it said.

“In the eight years (FY09 to FY16) preceding the Dreamworld tragedy, VRL’s Australian theme parks achieved average EBITDA of $86 million per annum.

“The second half of FY17 experienced a significant impact from the tragedy and resulted in full year FY17 EBITDA of $55 million, followed by FY18 EBITDA of $41 million.”

The dearth of tourists in the April school holidays thanks to the broken promise of the Commonwealth Games also hurt Village’s bottom line, the company said.

Clark Kirby, CEO of Village Roadshow Theme Parks, at Movie World on the Gold Coast. Pic Adam Head

However, it said the market was improving and it expected 2019 to be stronger in both attendance and yield terms.

“Gold Coast Theme Parks experienced lower than expected attendances over the school holidays in April 2018, because Commonwealth Games deterred park customers with the perception of worsening traffic conditions on the Gold Coast and Games attendees were not visitors to theme parks,” the company said.

“There is a strong indication that Gold Coast Theme Parks have returned to a positive trajectory as evidenced by the best month of July on record in terms of ticket sales. “Importantly, very strong ticket sales of the most important ticket category, the season pass, were $3.2 million above budget and $6 million up on the prior corresponding period, with significant yield increase.”

Village Roadshow spent about $30 million on its new DC Rivals HyperCoaster last year and has recently opened Australia’s first Top Golf.

The company’s asset sales and share entitlement allowed it to reduce debt by $276million.

Tyson Bardsley at Top Golf. Picture: Jerad Williams

The results flagged more potential for growth as it rolls out new attractions like Sea Jellies, Shaun the Sheep, the new HyperCoast Walk and the new Australian Outback Spectacular show.

The company called a share trading halt in July as it looked to raise $50 million capital to pay down debt.

VILLAGE ROADSHOW LTD FY18 RESULTS:

 Attributable profit after tax $0.2 million (twelve months to 30 June 2017 (“FY17”): $66.7 million loss) after profits from material items of $7.5 million (FY17: $90.3 million loss);

 Attributable profit from material items after tax of $7.5 million in the current period include gains on disposal of investments and businesses of $156.9 million and impairment and other non-cash adjustments of $167.6 million (refer page 13 for further details in relation to material items);

 Attributable loss after tax before material items and discontinued operations (“NPAT”) $7.3 million, (FY17: $23.6 million profit); and

 Earnings before interest, tax, depreciation and amortisation, excluding material items and discontinued operations (“EBITDA”) $90.9 million (FY17: $136.3 million) (refer Reconciliation of Results on pages 14 and 15).

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