AusLeisure

Coast Entertainment Holdings Limited, the owner of Gold Coast theme parks Dreamworld and WhiteWater World has reported a 3.1% rise in ticket sales over the past financial year, overcoming severe storms that disrupted trading in the peak Christmas-New Year's holiday period.

Revealing a preliminary update of its unaudited trading performance for the year ended 25th June to the Australian Stock Exchange today, Coast Entertainment reported ticket sales at their highest levels since 2015/16, up 3.1% from the previous year and 42.1% above pre-COVID levels.

Overall, the company saw a 14.3% increase in total visitation, driven by new attractions and strong sales of annual passes, anticipating a positive EBITDA and an improved revenue of $87 million.

Pointing to the success of Dreamworld’s new Kenny & Belinda precinct, the Dreamworld Flyer and the Wiggles Big Red Boat Coaster, a statement to the ASX advised that “the Group continues to focus on delivering a differentiated and compelling guest experience and has again achieved category leading guest review scores”.

However, while sales of annual passes have increased - resulting in higher levels of repeat visitation - Coast Entertainment advised that this has come with “slightly diluted per capita yields”.

The report notes that its performance was “notwithstanding the high interest and inflationary environment weighing on consumer spending, adverse weather impacts and the prior year benefitting from $2.6 million of revenue arising from Queensland Government COVID stimulus promotions”.

It also noted that its SkyPoint attraction “which was previously heavily reliant on international business, has continued to trade well”.

It added “ongoing focus on driving attendance and yield in local and interstate markets, along with a gradual recovery in international visitation, has resulted in revenue and EBITDA performance being the best on record.”

Christmas and New Year’s Day storms
Including specific information on the Christmas 2023 and New Year’s Day 2024 storms, Coast Entertainment explained that “the storms resulted in three days of closure for Dreamworld and five days of closure for WhiteWater World, as well as impacting the parks throughout much of January, well beyond the days of closure (and) caused considerable damage and trading disruption.”

Currently, the Group is progressing compensation claims with its insurers in respect of the property damage and loss of earnings and will provide a further update at the full year results announcement. To date, Coast Entertainment has received $700,000 in interim insurance payments related to property damage. 

The report also advised that the company also remains focused on capital management with a robust balance sheet and an ongoing share buyback program.

Image: The Claw, one of Dreamworld's signature rides operating during Dreamworld After Dark: Snowy Nights.

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