RAIN AND RISING COSTS TAKE ARDENT FOR A RIDE

Written on the 21 February 2013

RAIN AND RISING COSTS TAKE ARDENT FOR A RIDE

DRIVING rains at the end of January hit revenues at Dreamworld, but the theme park still managed to deliver a solid performance over the six months to the end of December.

Theme park owner Ardent Leisure Group (AAD) reports a 5.5 per cent lift in revenue to $55.9 million during the half year.

Revenue growth was driven by higher visitor numbers, although Ardent says spending per visitor was down.

This should have translated to an improved bottom line, but Ardent says higher electricity costs due to the carbon tax and higher licence fees put a squeeze on margins.

This led to a 1 per cent fall in EBITDA (earnings before interest, tax, depreciation and amortisation) to $19.6 million.

Ardent Leisure CEO Greg Shaw says revenue growth at Dreamworld had been aided by new product releases, including the Kung Fu Panda attraction, and the resurrection of reality TV show Big Brother.

He says costs should come under control in the second half as licence fees normalise and power-saving measures are introduced at the theme park.

The current half year already has had a setback after revenues during Dreamworld’s peak January period slipped 1.7 per cent to $12.1 million due to the wet Australia Day weekend.

Across the group, Ardent Leisure – operator of health clubs, bowling alleys and marinas – posted an 11.4 per cent increase in its bottom line profit to $21.4 milion.

Group revenue lifted 9.8 per cent to $219.7 million.

Ardent Leisure is making an interim distribution of 6.6c per stapled security, up from 6.5c a year ago.


Latest News

PROFIT BOOST FORECAST AT VILLA WORLD

VILLA World has forecast profit growth of 5 per cent in the first half of FY17 in an earnings guidance released to th...

WP CURVE SOLD TO GODADDY

NASDAQ-listed tech company GoDaddy has bought Gold Coast's WP Curve for an undisclosed sum.

The subscription-b...

BOARD SHAKE-UP TAKES OUT SURFSTITCH FOUNDER

ONLINE actionwear retailer SurfStitch Group (ASX: SRF) has announced a major board shake-up in a move that effectivel...

ORIGIN TO DIVEST UPSTREAM OIL AND GAS BUSINESS

ORIGIN Energy will spin off its upstream oil and gas business in an as-yet unpriced IPO.

It will allow the Sydney-...

Related News

HOW MCDONALD'S AUSTRALIA REDISCOVERED ITS INNOVATIVE SPIRIT

MCDONALD'S is such a ubiquitous part of the Australian landscape today that it is easy to forget how it change...

JB HI-FI IS THE GOOD GUY IN $870 MILLION ACQUISITION

ELECTRONICS giant JB Hi-Fi has formally completed its $870 million acquisition of home appliance chain The Good Gu...

ACCC ACTS AGAINST MERITON'S RIGGED REVIEWS

MERITON Property Services is under fire from Australia's main consumer watchdog, after it allegedly engaged in mi...

ACCC FIRES WARNING SHOT TO IVF PROVIDERS

IVF clinics have been put on notice by consumer watchdog, the Australian Competition and Consumer Commission (ACCC...

Contact us

Email News Update Sign Up Contact Details

Subscribe to our mailing list

* indicates required
Email Format

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter