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

HTS Group Ltd

HTS Group Ltd provides a complete design, system integration, installation and maintenance package to the transportation, traffic engineering, parking and sports timing industries in New Zealand,…

read more

Aquatics / Events / Sport / Technology

 
 

Ecoline

Ecoline is a highly experienced and skilled company that offers world-first technology in safety, protects the environment and provides a unique and challenging custom-made adventure and educational…

read more

Attractions / Environment / Safety / Tourism

 
 

PlayRope

Playrope Aqua-Fun, are the Australian & New Zealand exclusive distributors for Vortex Aquatic Structures International, the world leader in aquatic playgrounds and urban water landscapes.…

read more

Aquatics / Attractions / Parks / Play / Recreation

 
 

Fitness On Demand

Fitness On Demand™ is a market-leading developer of virtual group fitness products. Our innovative video delivery systems offer robust content and a simple-to-use, comprehensive web app. Fitness…

read more

Fitness / Technology / Wellness

 
 

GOPLAY COMMERCIAL PLAYGROUNDS

Goplay designs and manufactures specialised playground equipment for indoor play centres, hotels, food chains, clubs and resorts. If our years of experience and dedication have taught us one thing,…

read more

Play

 
 

Aflex Inflatables

Aflex Inflatables are the leaders for obstacle courses, pool toys, waterparks and land-based watersides and fitness runs. They are industry leaders offering the widest range of pool, lake and beach…

read more

Aquatics / Play / Waterparks

 
 

Mattioli

Mattioli provides award winning painting, flooring and waterproofing services to the aquatics and recreation sector. We’re recognised as the leading contractor in the industry with award-winning…

read more

Aquatics / Recreation / Safety

 
 

NOVOFIT

NovoFit is an exciting and dynamic new company born from two of Australia’s leading commercial fitness equipment suppliers. NovoFit combines over 45 years of industry expertise, delivering state…

read more

Fitness / Recreation / Sport / 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