Shares in Ardent Leisure have rocketed to a six-year excessive after the theme park operator posted its first constructive earnings outcome since 2017.
The group, which owns Gold Coast points of interest Dreamworld and WhiteWater World, reported $300,000 in underlying earnings for the half on Friday, up from a $16 million loss the earlier interval.
Revenue jumped 137 per cent to $25.2 million, pushed by the return of attendees to theme parks following the easing of pandemic restrictions. Net revenue got here in at $669m, up from a lack of $36.8m – a outstanding 1921 per cent turnaround.
Ardent Leisure shares surged 5.8 per cent to 72.5c by 2pm, their highest value since December 2016.
Chairman Gary Weiss lauded the long-awaited return to profitability.
“In what has been a long recovery journey for Ardent, exacerbated by the COVID-19 pandemic, the significantly improved trading performance demonstrates the resilience of our theme parks and attractions business, particularly during the recent challenging times,” he mentioned.
In a symbolic enhance for the corporate, the Queensland regulator awarded Dreamworld and WhiteWater World new licences in August, as a part of a revamped security regime following the deaths of 4 individuals on Dreamworld’s Thunder River Rapids Ride in 2016.
Theme park working income surged 137 per cent to $43.7m, the best in over six years, as whole attendance grew 67 per cent.
“A return to positive earnings before interest, tax, depreciation and amortisation in the half for the first time in six years is a meaningful milestone in the recovery of this iconic business,” chief government Greg Young mentioned.
Ardent’s $1.1b sale of its US-based Main Event business, which operates 44 leisure centres that includes bowling alleys, arcades and eating places, enabled the corporate to erase all its money owed and lift funding funds and declare a 95c per share dividend distribution.
The firm mentioned it was centered on utilizing its new-found capital to fund development.
It will spend greater than $50m creating new points of interest at Dreamworld, together with a wave swinger trip, and a $35m rollercoaster to function the world’s first inclined turntable.
“Our strategy to focus on safety, be disciplined on costs to fund our priorities and to deliver an exceptional guest experience through brilliance at basics and providing memorable in-park interactions is yielding results,” Mr Young mentioned.
“Economic headwinds remain front of mind and it is prudent for us to regularly contemplate how to appropriately position the business to deal with these challenges.”
Source: www.perthnow.com.au
