Ardent Leisure AGM: Shareholders hear of November attendance drop for Dreamworld following strong school holidays

Queenslanders returned in strong numbers to Dreamworld and WhiteWater World during the September school holidays – but there’s a catch. FIND OUT THE DETAILS

QUEENSLANDERS returned in strong numbers to Dreamworld and WhiteWater World during the September school holidays with attendance surging 35 per cent higher compared to the previous period.

Ardent Leisure shareholders heard on Wednesday at the company’s annual meeting that this led to an attendance between September 16 and October 31 that was 81 per cent of the prior corresponding period.

“This is a great result given the Queensland border was closed,” theme parks and attractions CEO John Osborne said in an address.

However Mr Osborne warned that the surge, resulting from pent-up demand during the closure of the parks, had since subsided.

Dreamworld reopened to the public on September 16 after being closed for months.

“Attendance has fallen well below the prior corresponding period, highlighting the importance of the Queensland border reopening to Sydney and Melbourne in time for the Christmas holiday period.”

Ardent offered customers a discounted annual pass between August and October due to the border closure.

The promotion was supported by what it called a “nostalgia-based marketing campaign” and the staging of Happy Halloween.

“The results were outstanding with annual pass sales and associated cash receipts improving by 210 per cent and 137 per cent respectively compared to the prior corresponding period,” Mr Osborne said.

Dreamworld reopened to the public on September 16 after being closed for months.

“Overall annual pass sales and associated cash receipts for the period to October are better than the prior corresponding period, despite the parks being closed for three months.

“This demonstrates that the local drive market is responding positively to the efforts made over the past two years, to improve the guest experience and restore Dreamworld’s reputation.”

Mr Osborne said trading during October had been cash positive partly thanks to the JobKeeper wage subsidy.

The company had also initiated its first drawndown on its $69.9 million Queensland Treasury facility in October.

He said those funds were to be used for its new multi-launch rollercoaster, construction of which had started and was due to be completed in the final quarter of next year in time for the Christmas school holidays.

Ardent Leisure unveiled a $136.6 million loss for FY20 following the closure of its themeparks in Australia and its Main Event centres in the US.

Shareholders were told on Wednesday that 42 of the 44 Main Event centres had reopened after coronavirus-related closures.

EARLIER: AUGUST 27

DREAMWORLD owner Ardent Leisure says it will start work on its new multi-launch rollercoaster “as soon as possible” following an injection of $70 million in state funds.

The news was revealed today in Ardent’s full-year results presentation that included a section on reopening its theme parks, including Dreamworld and WhiteWater World.

The parks are slated to reopen on September 16.

Ardent took delivery of what it is calling the southern hemisphere’s first multi-launch rollercoaster earlier this year.

Dreamworld’s new rollercoaster is delivered to the car park. Picture Glenn Hampson

However, the Sydney-based company, which shut its parks in March due to the spread of COVID-19, was forced to store the rollercoaster in its car park due to a lack of funds.

Chief strategy officer Paul Callender said at the time that the rollercoaster required significant capital investment, including $17 million in contractor works.

That has now changed after the State Government earlier this month announced a three-year financial package of $69.9 million to support the parks.

Ardent now has more than $100 million available for the Australian business (including $32.6 million of its own cash).

Dreamworld will start work “as soon as possible” on its new unnamed rollercoaster. Pictured is an artist impression.

The US Main Event business - family entertainment centres mostly located in Texas - have considerably more cash available at $129 million but both funding pools are kept separate.

Ardent has announced it will close two rides - the Wiggles-themed Big Red Car and surfing simulator Flowrider - at Dreamworld after a review.

“The remaining ride count will be comparable to our closest competitor and presents a diverse range of kids, family and thrill rides,” the company said.

EARLIER:

DREAMWORLD owner Ardent Leisure has reported a massive $136.6 million loss for the full year following the closure of its Gold Coast theme parks and Main Event centres in the US due to COVID-19.

The Sydney-based company, which is planning to reopen Dreamworld and WhiteWater World on September 16, said revenue for the 12 months to June 30 was $398.3 million, down $85 million on the previous period.

Ardent has reported $54.5 million in revenue from its Gold Coast theme parks – down 18.8 per cent on the prior period – and largely due to the closure of the parks in March.

It said prior to COVID revenue was $51.4 million and growth in attendance and revenue was 4.5 per cent and 4.7 per cent respectively.

Entrance to the Dreamworld theme park on the Gold Coast. Pics Adam Head

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Ardent said in a presentation that it would be permanently closing two of its rides at Dreamworld, without specifying which ones would be scrapped.

It also said construction of its new “world class” launch roller coaster will start as soon as possible. It is expected to open in the second half of next year.

The company also benefited from selling off a 5630sq m parcel of what it calls “surplus land” at Coomera for $2.5 million.

Chairman Dr Gary Weiss said COVID-19 had a significant impact on the business.

“While positive progress has been achieved by Main Event and Theme Parks in the first eight months of the year, our focus turned to capital management and securing capital for the businesses as the COVID-19 pandemic escalated,” he said.

Dreamworld will reopen on September 16.

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Dr Weiss said the company is starting the current financial year from a position of strength thanks to Redbird Capital buying a stake in Main Event and $69.9 million in funding from the Queensland Government, which is helping the company with its reopening plans.

“We anticipate uncertain and challenging conditions to continue in FY21, however we believe that the demand for out-of-home family entertainment experiences will be stronger than ever once the pandemic has subsided and restrictions have eased,” he said.

Theme parks CEO John Osborne said his team continued to focus on minimising cash burn and taking a “disciplined” approach to reopening its attractions.

“We are currently facing the toughest set of business conditions in decades meaning that uncertainty is likely to prevail for some time and we look forward to taking this challenge head on by being prepared to adjust as conditions evolve.”

Originally published as Ardent Leisure AGM: Shareholders hear of November attendance drop for Dreamworld following strong school holidays