Ardent Leisure, the owner of the Gold Coast theme park Dreamworld, has been hit hard this half, reporting a loss of $49.3 million, due to the 45-day closure of the park.
The results were by impacted by a $95.2 million property, plant and equipment write-down, goodwill impairment and incident costs associated with the Dreamworld tragedy.
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Ardent Leisure earnings report
The owner of Gold Coast theme park Dreamworld says a 45-closure of the park resulted in a huge loss for the half.
The group has valued the theme park at $147 million.
The overall loss was partially offset by a $45 million gain on the sale of Health Clubs.
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Ardent chief executive Deborah Thomas said as Dreamworld recovers it is expected that the future valuation of the asset and profit contribution will improve. The board has declared that the distribution per security for the period will be 2 cents, compared with 7 cents for the previous corresponding period.
The theme park was forced to close in October when four people were killed in a tragic accident on the Thunder River Rapids Ride.
The theme park division recorded total revenues of $41.8 million for the period, and earnings before interest, tax, depreciation and amortisation (EBITDA) fell to $5.9 million due to the 45-day shutdown of Dreamworld/WhiteWater World following the tragic October incident.
Ms Thomas said "the effects of this tragedy will be felt for some time and there is much healing still to take place. Our priority in reopening the park was to do so in a way that was respectful to the families of the victims".
"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," Ms Thomas 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."
It has been estimated Ardent generates up to $300,000 a day from its Gold Coast tourist assets, which include WhiteWater World and SkyPoint. There is also a new LEGO store at Dreamworld, which is trading well.
At the time of the closure, brokers said that the impact of the event on Ardent's near-term outlook was still uncertain, as were the longer term implications.
During the period, the group sold the d'Albora Marinas business for $126 million. That represents an 11 per cent premium over current book value of $113.5 million.
The purchaser is a special purpose vehicle jointly owned by Sydney-based Balmain Corporation and Goldman Sachs.
But aside from the troubled theme park business, Ardent said its Main Event business was strong.
More to come