Ardent Leisure shares continue to slide amid analyst warnings on Dreamworld

Analysts warn visitor numbers could plunge when Dreamworld eventually reopens.

DCarriages are removed from the Dreamworld accident scene. Picture: Richard Gosling.

Ardent Leisure shares have continued to lose ground, extending a tumble that has wiped more than 22 per cent of the group’s market value since four people were killed in an accident at Dreamworld last Tuesday.

It follows the company abandoning plans to reopen the park over the weekend, while analysts continue to warn visitor numbers could plunge when the Gold Coast facility eventually reopens.

About 200 staffers have returned to work at Dreamworld, while the theme park remains closed to visitors indefinitely.

Mr Davidson said they had started a “cautious and staged approach” allowing staff to return. “They are working their way through administration tasks and maintenance and upkeep of the park,” Mr Davidson said.

Shares in Dreamworld’s parent, Ardent Leisure, closed 1 per cent lower at to $2.02 on Monday.

Bell Potter analyst John O’Shea said it remains unclear what the financial impact of the Dreamworld tragedy will be on Ardent’s earnings. “What is clear, is that if the park reopens, attendances will be adversely impacted,” he said in a research note.

“It remains unclear what financial and other penalties will be incurred if the company is found to be responsible in any way and how insurance cover fits into this scenario.” He estimated Dreamworld’s visitor numbers will decline about 20 per cent in the 2017 financial year and then gradually improve.

with AAP