Dreamworld owner Ardent Leisure suffers major financial blow due to virus pandemic

The owner of the iconic Dreamworld theme park has posted major financial losses as the pandemic stifles visitor numbers to the Gold Coast.

The owner of Queensland’s iconic Dreamworld has revealed the financial lacerations sparked by the coronavirus pandemic that forced the embattled theme park to close its doors since March.

Releasing its financial results for the 2020 financial year, Ardent Leisure posted a net loss of $136.6 million, a blowout of $75.7 million compared with the loss incurred in the previous year.

The entertainment group’s theme park and attractions businesses located in Australia and the US were hurled into a state of uncertainty at the beginning of the pandemic, which forced venues to close due to lockdown restrictions.

The economic recession that followed the initial onset of the health crisis caused a $15.4 million devaluation in the group’s theme parks business, which is primarily made up of its Dreamworld operations located on the Gold Coast.

Earnings for the year were $5.7 million, a stark contrast to the 54.2 million recorded in financial year 2019.

Ardent Leisure posted a net loss of $136.6 million, a blowout of $75.7 million compared with the loss incurred in the previous year. Picture: Dave Hunt/ AAP

Ardent Leisure chairman, Dr Gary Weiss warned “uncertain and challenging conditions” remain in place for the industry, while lockdowns and border restrictions cause significant disruptions to the travel and leisure industries.

“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.

“The financial assistance package provided by the Queensland Government will enable us to reopen Dreamworld and WhiteWater World and continue to employ hundreds of people, directly and indirectly.”

Ardent Leisure chairman Dr Gary Weiss warned ’uncertain and challenging conditions’ remain in place for the industry. Picture: Jerad Williams

The theme park division incurred an earnings loss of $24 million, driven by a slump in revenue from reduced ticket sales.

Ardent Leisure chief executive of theme parks John Osbourne said the development of its new rollercoaster and ongoing refurbishments would enable the park to win back market share from its Gold Coast rivals.

“We are currently facing the toughest set of business conditions in decades, meaning that uncertainty is likely to prevail for some time,” he said.

Revenue from its US business Main Event declined 21.7 per cent in US dollar terms due to all centres being closed from March 17.