The first-half profit of Dreamworld owner Ardent Leisure more than halved after a fatal accident that killed four people last October and closed the attraction for over a month.
Sydney-based Ardent said core earnings dropped to $12.8 million in the six months to December from $30.5 million a year earlier. Revenue fell 5 per cent to $317.2 million.
"The results for the period were significantly impacted by the Dreamworld tragedy and the theme park's subsequent shutdown for 45 days," the company said.
"In addition, the Group recorded a statutory loss of $49.4 million [compared with a profit of $22.7 million], primarily impacted by a $95.2 million property, plant and equipment write‐down, goodwill impairment and incident costs associated with the Dreamworld tragedy."
It declared a 2¢ interim dividend, down from 7¢ a year earlier.
The tragedy that led to claims Dreamworld had ignored safety concerns and tested the company's management skills cut Ardent's share price overnight from $2.55 to $1.88. The shares closed at $2.17 on Wednesday.
Other one‐off events that impacted earnings include the five‐month closure for refurbishment of Kingpin Crown and the loss of more than two months of earnings from Health Clubs following the completion of its sale in October 2016. It made a $45 million profit on the October sale of its Health Clubs unit for $260 million.
Days after the October 24 accident, Australia's worst theme park tragedy in more than 35 years, the company warned it would have a 'significant' impact on earnings.
Earlier this month Ardent said the January revenue at its theme parks division was $6.97 million, just under half the $14.05 million it had made in the same month last year. Theme parks revenue in December was down 63 per cent, year on year.
On Thursday, Ardent said its Theme Park division recorded total revenues of $41.8 million for the period, and EBITDA fell to $5.9 million due to the 45‐day shutdown of Dreamworld/WhiteWater World.
"The effects of this tragedy will be felt for some time and there is much healing still to take place," chief executive Deborah Thomas said on Thursday.
The company said revenue at its US-based Main Event entertainment business rose 35.2 per cent to $US102.1 million and that Ebitda earnings of that division increased nearly 21 per cent to $US18.2 million. In December, it sold d'Albora Marinas, the country's largest marina portfolio, for $126 million, to raise funds to invest in Main Event.
"The revenue and earnings growth achieved at Main Event Entertainment was driven by 11 new centre openings since November 2015.
"Four new centres were opened during the first half and following the opening of a fifth centre in February, Main Event Entertainment is now operating 32 centres across 12 states in the US," Ms Thomas said.
"Six more centres are scheduled to open in the second half, including entry into two new states - Indiana and Pennsylvania."
In its outlook statement, the company focussed on the Main Event business and said new centres were making a 30 per cent-plus average Ebitda return on investment.
"Dreamworld is expected to recover over the course of time, assisted by new attractions and exciting branded retail concepts, supported by promotion to domestic and international visitors," the company said.
"The Theme Park businesses are also expected to benefit from increased domestic and international tourism to the Gold Coast for the 2018 Commonwealth Games and the development of land adjoining the property in Coomera".
For full coverage of today's earnings, go to the AFR Results Wrap Feb. 23
