Dreamworld revenue takes a hit
Ardent Leisure, the owner of Dreamworld on the Gold Coast, has reported a hit to revenue from its theme park division following the tragic death of four visitors last October and says it cannot say when those revenues will return to normal.
Since the re‐opening of Dreamworld on December 10 through to December 31 the company's theme park division recorded unaudited revenues of just $3.66 million, down 63 per cent on the $9.89 million recorded in the prior corresponding period.
The company's shares fell 0.4 per cent on Friday to $2.23, but the stock has steadily recovered since touching $1.96 in the aftermath of the October 25 tragedy.
"We have opened the park back up slowly and we have done this to make sure we have the safest park in the world," chief executive Deborah Thomas told AFR Weekend.
While attendance numbers have steadily increased since Boxing Day and visitation has been more consistent, Ms Thomas said she was unsure of just how quickly the revenues from the theme park division would normalise.
"I wouldn't put a time frame on it at this point," she said.
There is also no indicative time frame as to when a coroner's report into the tragedy will be released.
As revenues dropped, costs at the theme park also stayed high with 1000 employees receiving continued pay during the closure. "[The employees] are important to the business and I see them as the greatest ambassadors for Dreamworld," Ms Thomas said.
Big thrill rides returned to service following an independent safety review and the park's last rides. The Tower of Terror II and the Giant Drop are scheduled to be back operating before the end of January.
"Overall guest sentiment has been very positive and we thank our guests, passholders and the broader community for their strong support," the company said in a statement.
Ardent said it would continue to make regular trading updates for its theme parks division over the coming months to keep the market and investors fully informed.
Citi analyst Sam Teeger said the attendance at Dreamworld was being closely monitored as a gauge for how well the overall theme park industry was doing.
"The elephant in the room is the impact of Dreamworld's accident on industry visitation," Mr Teeger said, "We suspect Village Roadshow's gained market share during the Christmas period, which should help it offset an overall market contraction."
Ardent also noted in its statement that its Main Event entertainment division recorded unaudited revenue of $US102.1 million ($139.1 million) for the period from July to December, up 35.2 per cent on revenue of $US75.5 million on the prior corresponding period.
However, unaudited constant centre revenue of $US68 million was recorded for the period from July to December, down 2.9 per cent on revenue of $US70 million recorded in the prior corresponding period.
Ardent said this revenue was affected by uncertainty around the US presidential elections and the associated low consumer confidence which can hurt casual dining. Texas was apparently more affected then most of the US.
