Latest News

Back to Latest News back

 

Gold Coast Tourism resurgence suggests positive outlook for Ardent Leisure businesses

Gold Coast Tourism resurgence suggests positive outlook for Ardent Leisure businesses
August 12, 2016

Leading analysts Citi have predicted that multi-sector leisure business Ardent Leisure will benefit from a resurgence in Gold Coast tourism, further roll-out of its US family entertainment centre business and a turnaround in the performance of its Goodlife Health Clubs in its 2015/16 financial year figures to be released on 24th August.

Anticipating a net profit after tax of $56.2 million for the year, Citi predict that Ardent’s share price, which has recovered almost 18% in the last six months, will enjoy further growth.

As well as Goodlife, Ardent operates the Main Event family entertainment centre (FEC) businesses in the United States, AMF and Kingpin Bowling; d'Albora Marinas; and the Dreamworld, WhiteWater World & SkyPoint theme parks and attractions on the Gold Coast.

Citi Research analyst Sam Teeger told the Australian Financial Review “we expect Ardent's share price to increase on accelerating Main Event like-for-like momentum, despite questions surrounding sustainable margins

"Ardent should also benefit from the Gold Coast Tourism resurgence."

Citi noted that there was 51% less rainfall on the Gold Coast in the first half of this calendar year compared with first half of 2015 and that Gold Coast airport traffic was up 10% over the same time frame.

As a result, it expects Ardent’s Gold Coast attractions to report attendance growth of 13% compared with the previous corresponding period.

However Citi said there was some risk to margins given the theme park's earnings before interest depreciation and amortisation and because of increased labour costs.

For Goodlife, Citi predict a small rise in earning based upon pressures on membership pricing having “stabilised”.

However, Citi highlight that Western Australia (where 20% of Goodlife clubs are located) appears to be “the most challenged state” with prices falling throughout the current year.

Citi’s analysis states “Ardent recognised $25 million of goodwill on the Fitness First Western Australia acquisition and given the reduction in pricing in Western Australia, we see potential for a goodwill impairment.”

Citi also predict that the findings of Ardent’s strategic review of its fitness division will be released along with the 2015/16 figures.

Citi also expect an update on Ardent’s planned sale of its d'Albora Marinas division, announced in March.

Media reports suggest negotiations are now well advanced with three parties but that the sale could be impacted by the cost of cleaning up an oil spill at Sydney’s Rushcutters Bay in May this year.

Images: Tiger Island at Dreamworld (top) and the d’Albora Marinas' property at Akuna Bay (below).

14th June 2016 - GOODLIFE HEALTH CLUBS AIMS TO MAKE YOGA ACCESSIBLE WITH NEW MARKETING CAMPAIGN

25th April 2016 - GOODLIFE HEALTH CLUBS OPENS MELBOURNE DOCKLANDS CLUB AS ARDENT LEISURE UNDERTAKES REVIEW OF GYMS

31st March 2016 - ARDENT LEISURE LOOKS TO SELL MARINAS DIVISION

18th February 2016 - ARDENT LEISURE RECORDS 20% PROFIT RISE BACKED BY IMPROVED FEC AND THEME PARK VISITS

21st August 2015 - ARDENT LEISURE RECORDS PROFIT DIP BUT LOOKS AT FEC EXPANSION

22nd July 2015 - ARDENT LEISURE PLANS INTERNATIONAL EXPANSION


Asking a small favour
We hope that you value the news that we publish so while you're here can we ask for your support?

The news we publish at www.ausleisure.com.au is independent, credible (we hope) and free for you to access, with no pay walls and no annoying pop-up ads.

However, as an independent publisher, can we ask for you to support us by subscribing to the printed Australasian Leisure Management magazine - if you don't already do so.

Published bi-monthly since 1997, the printed Australasian Leisure Management differs from this website in that it publishes longer, in-depth and analytical features covering aquatics, attractions, entertainment, events, fitness, parks, recreation, sport, tourism and venues management.

Subscriptions cost just $90 a year.

Click here to subscribe.

 

supplier directory

The Complete Guide to Leisure Industry Products & Services.

See the directory see all

Yellowbox Lockers

Yellowbox is an Australian technology company that has developed smart locker technology operated through an app with a focus on experience for users and facility managers. Found at Beaches, Aquatic…

read more

Aquatics / Attractions / Entertainment / Retail / Security

 
 

Worldwide Sports Management

Principal Consultant Simon Weatherill has spent the last 20 years developing the world renowned Melbourne Sports Hub, as former Chief Executive Officer of the State Sports Centres Trust…

read more

Aquatics / Consultants / Recreation / Sport / Venues

 
 
 

BioLab Australia Pty Ltd

BioGuard is Australia and New Zealand’s most trusted supplier of premium, innovative and affordable commercial water treatment systems and chemicals. BioGuard offers a comprehensive range of…

read more

Aquatics / Technology / Waterparks

 
 

Pico Play

Pico Play is a global leader in the planning, design, development and construction of world-class themed attractions and entertainment that deliver extraordinary and memorable experiences to millions…

read more

Attractions / Consultants / Design / Recreation / Tourism

 
 

Fun Wheels Pty Ltd

Fun Wheels Pty Ltd are the premium dealer in Australasia for the Dutch company BERG’s commercial and domestic products. Our flagship product is their revolutionary pedal go-kart – the…

read more

Attractions / Tourism / Venues

 
 

Quayclean

Quayclean are a national cleaning and waste services partner with proven results in the understanding and delivery of cleaning needs and challenges faced by facilities including; major venues and…

read more

Aquatics / Hospitality / Surfaces / Venues

 
 

XBODY Australia Pty Ltd

PROVEN BUSINESS CONCEPTS WITH XBODY XBody’s goal is to see you and your EMS business succeed. That is why we don’t just sell equipment, we provide know-how, expert knowledge,…

read more

Fitness / Technology / Wellness

 
 
 
 

get listed with our suppliers directory

Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!

list your business