ARDENT LEISURE SHARE PRICE DROPS AGAIN AS THEME PARKS CONTINUE TO STRUGGLE

Written on the 9 May 2017 by Business News Australia

ARDENT LEISURE SHARE PRICE DROPS AGAIN AS THEME PARKS CONTINUE TO STRUGGLE

ARDENT Leisure's (ASX: AAD) theme park division is still losing money with visitation numbers in March and April down by 36.7 per cent compared to the same period last year.

Figures also reveal revenues from the theme parks division was down $9.6 million, a drop of 38.9 per cent as the company continues to struggle following the tragic deaths of four people on a Dreamworld ride in October 2016.

However, these numbers are a slight improvement from the Company's December 2016 figures which saw the company's theme park revenue down 63 per cent.

Ardent blames the figures on the significant rainfall the Gold Cost received during March as tourists cancelled plans to travel to the region following the flooding caused by Cyclone Debbie.

The Company says it will continue to invest in supporting Dreamworld by discounting ticket prices and increasing the number of maintenance employees operating the attractions.

Ardent has updated its anticipated financials for the theme parks division to be a loss of between $2 million and $4 million for the 2017 Financial Year.

The continued disappointing results coming from Dreamworld comes off the back of the shock resignation of Deborah Thomas as CEO of Ardent Leisure.

Thomas was "transitioned" to the role of Chief Customer Officer and Chief Operating Officer in late April this year.

Thomas was succeeded by former Nine Entertainment Executive Simon Kelly.

The results were also released in the context of rumours that the struggling theme park might be up for sale to Chinese investment company Songcheng Group.

Ardent Leisure is currently trading down 2.6 per cent at $2.05 and is down around 11 per cent for the year.

Business News Australia

 
Author: Business News Australia

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