Ardent returns to profit as Dreamworld attract more visitors

Better attendance at its flagship theme park on the Gold Coast and the sale of its US amusement centres has helped the entertainment group.

Entertainment group Ardent Leisure has returned to profit as more aspirational working families returned to its flagship Dreamworld park to “spend on experiences.”

The company reported profit for the year of $664.7 million, a significant improvement compared to the $97.4 million loss in the prior period.

Ardent, which also owns the Whitewater World and Skypoint attractions on the Gold Coast, said the performance also was helped by a $682.4 million gain on the sale of Main Event Entertainment in the US. Strong operating revenue growth was driven by a 38.6 per cent increase in total visitation at its parks and a 48.5 per cent increase in ticket sales.

The company said it would undertake a share buyback of up to 10 per cent of its shares. The shares rose 6.6 per cent to 56.5c on Friday.

Ardent chief executive Greg Yong said people were now focused on spending more on travel and less on homewares and renovations. “People are looking to invest more in experiences and less on material things,” said Mr Yong, who said the company was focusing on its target market of aspirational working families.

Mr Yong said capital investment in Dreamworld was paying off with new attractions including the Dreamworld Theatre, Belinda’s Tree House, Big Red Planes and Bananas In Pyjamas Carousel now open. Ardent Leisure chairman Gary Weiss said improved ticket sales and visitors numbers were continuing into the current financial year.

“Tickets sales in July were the highest they were since July 2016,” said Mr Weiss. “All of this was achieved despite a relative lack of international visitors.” He said the strong performance meant the company planned a share buy back of up to 10 per cent of total stock. The timing and actual number of shares to be purchased was yet to be announced.

Dreamworld back in actions

Ardent said its theme parks and  attractions business achieved operating revenue of $84 million up 70 per cent on the prior year.

Separately, Ardent said it had reached a settlement in a shareholder class action brought against it in 2020 relating to the 2016 Dreamworld theme park tragedy in which four people died. The settlement, which is subject to court approval, involves an all-inclusive payment of $26m to the applicants and is on the basis that there is no admission of liability.

Ardent has foreshadowed development of the 55 hectares of vacant land around its Dreamworld property, which is strategically located on the Pacific Highway just north of the Gold Coast. Ardent said it was in process of preparing a preliminary development application for the site that would allow a broader range of land uses than currently offered.

The proposed application has been accepted by the Gold Coast City Council as a ‘major project’ and conceptually divided into four areas including major tourism precinct, nature-based tourism precinct and mixed use precincts.

Ardent said it intends to apply for uses that are “rational for each precinct and strategically complimentary to the site as a whole.” Mr Yong said that ultimately could include new tourism attractions, short term accommodation, retail, residential and commercial.

Ardent Leisure CEO Greg Yong