This article is from the Australian Property Journal archive
ARDENT Leisure (ASX: ALG) remains in the red, reporting an annual loss of $60.9 million and it plans to complete a review of its leisure/theme park precinct to monetise the surplus land via commercial development with partners.
The loss result is an improvement from the $90.7 million loss in FY18, primarily due to a reduction of $31.8 million, impact from the sale of two businesses, valuation losses on the Dreamworld and SkyPoint properties as well as impairments in the prior year.
Total EBITDA has improved by approximately $65.7 million, from a loss of $54.0 million in FY18 to a profit of $11.7 million in FY19, driven by an increase of $107.5 million from continuing businesses, partially offset by a loss of $41.2 million contribution from operations that were discontinued in the prior year.
But FY19 continues to be impacted by restructuring costs, further impairments at several US entertainment centres and costs due the coronial inquest hearings into the fatal Thunder River Rapids accident in October 2016 where four riders were killed.
Revenue grew $60.9 million up 14.4% on prior period.
The US Main Event revenue increased US$21.8 million, up 7.9% versus prior year, primarily driven by additional contributions from centres opened in FY18 and FY19. Constant centre revenue in Main Event decreased 1.0% on a like-for-like basis. In Australian dollar terms, Main Event revenue increased by 17.0%, reflecting the movement in foreign exchange rates.
Theme Park revenue increased $0.3 million, up 0.5% versus prior year. The division recorded an EBITDA loss of $19.8 million, compared to an EBITDA loss of $93.8 million in the prior year. The improvement is largely driven by FY18 being adversely impacted by $79.6 million of non-cash valuation loss and impairments relating to Dreamworld and SkyPoint.
No dividend was paid in FY19.
Ardent has forecast constant centre revenue will increase by around 1-2% in FY20 with new ride attraction, Sky Voyager, opening and expected to increase attendance. “The proposed investment on new rides along with improvements made in 2H19 is expected to set Dreamworld on the path to recovery, with the aim of returning to historical pre-incident earnings or better over the next 3-5 years,”
Ardent also said it is completing the site master plan showing the footprint for the leisure/theme park precinct and surplus land that could then be improved and made available for commercial development with partners.
