Ardent banks on jabs, Taipan ride to boost pandemic recovery
Theme park operator Ardent hopes vaccinations and new rides like Dreamworld’s Steel Taipan rollercoaster will boost its Covid comeback.
Theme park operator Ardent Leisure shares surged after it announced it was banking on the vaccine roll out and new attractions including the Steel Taipan rollercoaster at its flagship Dreamworld property to boost its post Covid-19 recovery.
Ardent reported a net loss of $86.9m in the year to June 30, compared to $136.1m, as its theme parks, including Dreamworld and WhiteWater World on the Gold Coast, continued to be hit by border closures and lockdowns. Revenue dropped 1.9 per cent to $390.7m. The shares closed almost 22 per cent higher at $1.265 after trading as high as $1.325 earlier in the day.
Revenue at its Main Event family entertainment business in the US increased 14 per cent as centres, which feature ten pin bowling and laser tag attractions, reopened.
Ardent Leisure chairman Gary Weiss said the theme park business continued to receive strong support from the local market despite visitor numbers being impacted by international and interstate border restrictions, particularly during peak trading period.
Mr Weiss said the outlook for the business remained positive, underpinned by the rollout of vaccines, the expected opening of the Steel Taipan at Dreamworld and pent up demand in the domestic market.
Mr Weiss said he expected uncertainty from the pandemic and associated governmental restrictions to continue for the remainder of the calendar year. The theme park business had suffered 78 days lost revenue during the year due to lockdowns.
“We are confident that Ardent is well positioned for future growth once market conditions begin to improve,” he said
He said the second half of the year had seen the Main Event business rebound helped by pent-up demand, government stimulus and the accelerated vaccine rollout.
The theme park business, consisting of Dreamworld, WhiteWater World and SkyPoint, suffered a 34 per cent slide in revenue of $36m for the year, mainly due to the pandemic.
“The lockdowns brought a premature end to the traditional peak Christmas and Easter holiday trading periods for the business,” said Mr Weiss.
Dreamworld’s $32m Steel Taipan rollercoaster, the park’s biggest single investment, is expected to open later this year. The ride includes a snake-themed train and the world’s first spinning rear gondola.
A $69.9m financial assistance package, comprising a $63.7m three-year term loan and grants of $6.2m, obtained from the Queensland Treasury Corporation in August has provided sufficient liquidity for the business to fund working capital and capital projects, such as the new Steel Taipan rollercoaster.
Ardent theme parks chief executive Greg Yong, said his team had performed tremendously in what has been one of the most challenging business environments in our history.
“Upon reopening we set a very high standard for COVID-19 safety, and this continues to be a priority as new variants of the virus emerge,” said Mr Yong.
Ord Minnett Queensland state manager David Lane said that if borders reopened before Christmas, attendance numbers at Ardent’s theme parks could be boosted.
“Ardent’s business is vulnerable to lockdowns and restrictions, but as a result is leveraged to improved attendance numbers as we enter into summer with higher vaccination rates,” said Mr Lane. He said Queenslanders had supported the business, with sales of the local annual passes up 45.6 per cent.
The company did not declare a final dividend.
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