Coronavirus impacts Ardent Leisure guidance
13 March 2020,
Dreamworld owner Ardent Leisure (ASX: ARG) has decided to withdraw its FY20 earnings for Main Event, a bowling-based entertainment business operating across 17 states in the US.
On 21 February, the company had lifted the revenue forecast for Main Event by half a percentage point to a range of 1.5-2.5 per cent, however uncertainty around Covid-19 has resulted in the reduction in attendance and revenue at its 43 US centres.
The impact of the outbreak is also now expected to continue for longer than initially anticipated.
"Both Main Event and Theme Parks are pursuing a range of mitigating actions in response to the downturn in guest attendance," the company said.
"These include adjusting operating costs, deferring non-essential capital investment, and reviewing other non-critical business activities and discretionary expenses. The Theme Parks division will continue to focus marketing efforts on the domestic market in the short to medium term."
The company says the uncertain nature and duration of COVID-19 means it is not possible to provide any further meaningful guidance on the impact to the group's earnings for the rest of FY20.
"The Group will continue to monitor the preventative actions taken by governmental and regulatory bodies closely in markets that we operate in and their potential impact on the business in this rapidly evolving situation," the company says.
Updated at 4:57pm AEDT on 13 March 2020.