Dreamworld parent Ardent Leisure takes $22.5m hit

Ardent Leisure is bracing for the coroner’s report into the Dreamworld disaster as the coronavirus and wet weather hamper its turnaround.

Dreamworld has started construction on its yet-to-be-named hyper roller-coaster.

The coronavirus, severe wet weather and the potential impact on attendances from the upcoming coroner’s report into the Dreamworld tragedy on Monday will continue to hamper Ardent Leisure’s turnaround with the company not expecting to break even during the second half of the financial year.

The struggling Ardent Leisure, which, apart from the Gold Coast-based Dreamworld theme park, also controls the US-based Main Event business, reported a net loss of $22.5m for the first half, slightly higher that the $21.8m loss in the previous corresponding period.

Revenue grew to $263.2m, from $226.7m in the first half of the last financial year.

Ardent chief executive John Osborne said it was too early to quantify the impact of the virus.

“It’s certainly having a bigger effect on Skypoint than Dreamwworld; there’s been a bit of a downturn,” Mr Osborne said.

“It’s had an impact on our international business. (But) I am really optimistic that Australians would travel domestically.”

Despite the continued impact from the 2016 Dreamworld tragedy, the company chaired by Gary Weiss believes the challenges are temporary and says it remains focused on implementing investments such as a new multi-launch roller-coaster at the Coomera-based theme park.

Ardent Leisure has developed a pipeline of new rides and attractions, which will be implemented over the next three to five years, and says attendance levels have increased nearly 3 per cent.

Dreamworld, WhiteWater World and SkyPoint reported $38.7m in revenue for the six months ended December 31, compared with $34.4m the previous year.

Ardent Leisure shares dropped 3.7 per cent during intra day as investors queried the long anticipated turnaround of Dreamworld and its Main Event business.

Meanwhile, the Ardent Leisure board has appointed Goldman Sachs to “explore potential partnership arrangements” with parties that could support and accelerate Main Event’s growth, adding that despite intense media speculation, there was no certainty that any discussions would result in a transaction.

Four new Main Event centres will open this financial year with a further five centres opening the following year.

The coroner’s report on the Dreamworld tragedy is expected to be released on Monday. Four Dreamworld patrons were killed by the malfunctioning Thunder River Rapids Ride in 2016.