Ardent Leisure continues to distance itself from Dreamworld deaths

Ardent Leisure is continuing to distance itself from the four fatalities, with its chairman and CEO making no comment.

The scene after yesterday’s fatal accident at Ardent’s Dreamworld. Pic: AAP

Dreamworld will hold a memorial event on Friday for the four people killed on a ride on Tuesday, but the theme park’s owner, Ardent Leisure, continues to distance itself from the tragedy.

A statement released by Dreamworld tonight said the theme park will reopen on Friday at 11am.

Meanwhile, Dreamworld has established a grief counselling program with Queensland Health and the Red Cross.

However, Ardent Leisure chairman Neil Balnaves and chief executive Deborah Thomas have refused to comment on the tragic event during the day.

Mr Balnaves is reportedly ‘too emotional’ to speak, while Ms Thomas has been holed up at Dreamworld with her mobile phone switched off.

The statement tonight is headed ‘Incident Update’ and does not acknowledge the names of four people - Roozi Araghi, Luke Dorsett, his sister Kate Goodchild and a former New Zealand woman Cindy Low - who were killed in the accident.

It quotes DRA Safety Specialist David Randall as saying that Ardent Leisure had carried out safety audits over the past six years. An annual machanical and structural safety inspection for the Thunder River Rapids ride was passed as recently as September 29, it said.

The statement comes after Ardent Leisure lost nearly a quarter of its market capitalisation in just two days, with $253 million wiped fom the company’s value since Tuesday’s accident.

Ardent’s (AAD) shares opened today down as low as 22 per cent — the lowest point since February — but recovered some ground to close 14.89 per cent lower at $2 apiece, down 35 cents.

Today’s fall follows the 11 per cent sell-off after news of the accident hit the market yesterday afternoon.

Chairman Neil Balnaves is expected to keep his original plan to retire from the Ardent board at tomorrow’s meeting, leaving the company on November 6. He will be replaced by current non executive director George Venardos.

Meanwhile, police continue to investigate the fatalities.

Securities analysts have started to downgrade Ardent Leisure’s recommendations with forecasts that attendance at the attraction could fall by up to 20 per cent, based on previous similar accidents at theme parks around the world.

Citigroup analysts have cut the stock’s outlook from “buy” to “neutral” after yesterday’s incident.

Citi said it based its forecast of a major fall in attendance after the Alton Towers theme park’s rollercoaster accident in the United Kingdom in June last year, which seriously injured four people. Two victims had to undergo leg amputations and a further 14 people were hurt. The accident cost its owners Merlin at least £45 million in lost revenue and court-imposed fines.

“Based on the Merlin experience, we expect Dreamworld attendance to be adversely impacted over the upcoming peak Christmas trading period, and beyond, as a result of negative press commentary,” Citi analysts said.

As well as Dreamworld, Ardent operates WhiteWater World and the SkyPoint Climb at the Gold Coast, and the Main Event family entertainment centres in the United States.