Ardent Leisure on the mend but the Dreamworld tragedy remains a problem
Written on the 23 August 2019 by Business News Australia
While the 2016 Dreamworld tragedy continues to haunt the results of parent company Ardent Leisure (ASX: ALG) the company's books are on the mend.
During FY19 the group reported a loss of $60.9 million, compared to a loss of $90.7 million in the prior year.
Total earnings has improved by around $65.7 million, from a loss of $54 million in FY17 to a profit of $11.7 million this year, driven by an increase of $107.5 million from continuing businesses.
Year on year comparison of the group's earnings results is impacted by the sale of two businesses, non-cash valuation losses on the Dreamworld and SkyPoint properties in the prior year, as well as impairment charges at several US entertainment centres in the current and prior years.
Ardent says that FY19 continued to be impacted by post-incident trading conditions for its theme parks business following the tragic events at Dreamworld in 2016.
The group was also hit by costs associated with Coronial Inquest hearings into the Dreamworld disaster, non-recurring costs, as well as further impairment charges at the previously impaired US centres.
Considering the reinvestment of earnings and available capital into the business to drive growth at Main Event and to support Dreamworld's recovery through the creation of new attractions the board has declared there will be no dividend for shareholders in FY19.
Shares in Ardent Leisure are down 2.97 per cent to $1.14 per share at 11.43am AEST.
Business News Australia
Author: Business News Australia