Ardent Leisure losses grow as Dreamworld’s value declines by $75 million

August 22, 2018

Ardent Leisure has announced growing losses in its full year operations, reporting a net loss of $90.7 million for the year to 26th June, compared to a $63 million loss a year earlier, while also writing down the value of Dreamworld by $75 million.

Advising that the ongoing Coronial inquest in the the deaths of four people at the Gold Coast theme park in October 2016 is impacting efforts to encourage visitors back to Dreamworld, Ardent also advised of $6.2 million is costs associated with the fatalities,

The company also advised that it has struggled to restore visitor numbers at Dreamworld, with attendance dropping in 2017/18 to 1.658 million visits from 1.663 milllion the year before.

Commenting on the results, Dreamworld’s acting Chief Executive Nicole Noye advised that she expects the inquests will lead to lower visitation numbers, despite significant safety measures introduced in July.

She advised "going forward, unfortunately its a week-by-week focus for us until we get through the next few months.”

Ardent reported a 5% drop in revenue to $555.1 million, in line with a trading update last month.

That figure includes contributions from Ardent's Australian marinas and bowling businesses, which were sold during the year.

The theme parks division, consisting of Dreamworld, WhiteWater World and SkyPoint, reported an earnings loss of $91.1 million, slightly better than the $98.4 million loss a year earlier.

Ardent also took a non-cash impairment of $28.4 million related to five family entertainment centres in the USA.

As a result, underlying earnings at its Main Event division - which operates 41 FECs across the US - slid 64% from a year ago to 11.9 million.

The company expects to sharply lower annual group office costs to between $9 million and $10 million, from $15.5 million in 2017/18, following the restructuring and divestment of businesses.

The first part of the Coronial inquest into Dreamworld’s October 2016 fatalities was held in June and will resume for two further sittings in October and November.

16th August 2018 - Queensland Government regulators left inspections of fatal ride up to Dreamworld

2nd August 2018 - Queensland Government set to enforce tough safety rules for amusement rides

30th July 2018 - Ride fatalities aftermath continues to drive down Dreamworld’s value

1st July 2018 - Coronial inquest claims Dreamworld Chief Executive

30th June 2018 - Ardent Leisure issues statement of apology over Dreamworld deaths

26th June 2018 - Inquest hears that Dreamworld cut back maintenance in months before 2016 ride fatalities

25th June 2018 - Inquest evidence causing ‘irretrievable’ damage to Dreamworld’s reputation

21st June 2018 - Inquest hears Dreamworld ride operator ‘pressured’ not to talk to Police after fatalities

14th May 2018 - Dreamworld to open Trolls Village precinct

29th March 2018 - Ardent Leisure appoints new General Manager Marketing at Dreamworld and SkyPoint

26th February 2018 - Ardent Leisure cuts losses, announces new Main Event Chief Executive

18th February 2018 - Ardent Leisure Chairman excited by Dreamworld’s prospects through 2018

20th December 2017 - Ardent Leisure sells bowling centres division for $160 million

9th November 2017 - Ardent Leisure Chief Executive Simon Kelly to leave after just four months in role

29th September 2017 - Gary Weiss takes on Chairman’s role at Ardent Leisure

4th September 2017 - Ardent Leisure invites rebel shareholders to join board

11th July 2017 - Dreamworld battles inconsistent attendances and falling revenues

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