This article is from the Australian Property Journal archive
ARDENT Leisure has posted an interim revenue of $333.8 million up 16.8% on the back of the continued success of the US Main Event business and Goodlife health clubs.
The core EBITDA rose by 10.6% to $63.8 million for the six months to 31 December 2015. Statutory profit grew 20.4% to $22.7 million. Although core earnings were down 5.1% at $30.5 million impacted by higher depreciation, tax and interest including a $1.0 million one‐off expense relating to the refinancing of debt facilities. Distribution per security has been maintained at 7.0 cents.
Group chairman Neil Balnaves said overall, the Australian businesses performed ahead of expectations during the first half with a focus on consistent improvements and judicious investment to leverage ourexisting assets and drive organic growth.
“The standout performer in the Group continues to be Main Event, where US dollar revenues grew by 22.6% for the half, while the health club business has recovered strongly with strong membership growth driving its second quarter EBITDA up 20.9%. Importantly, the health clubs division has achieved record membership sales in January with expectations that the business will deliver over 10% EBITDA growth in the second half.
“The bowling division continued the turnaround theme with total revenues up 11.6% for the half. Kingpin Darwin, which opened in August 2015, has been an outstanding success and management’s strategy to transition traditional bowling into multi‐attraction entertainment, together with innovation in food and beverage, has helped drive outstanding revenue growth across the portfolio.
“The theme park division recorded strong revenue growth of 6.6% for the half, with a successful pass campaign and unique new attractions, including three tiger cubs born at the park, driving increased attendance and in‐park spend. A strong trading performance during the peak January season has set the business up for a solid start to the second half,” he added.
Balnaves said the group’s full year performance will be weighted to the second half, with two new Main Event centres opened towards the end of the first half and another five centres scheduled to open in Q3 and Q4.
“We expect to see the turnaround in our Australian businesses and the expansion of Main Event continue with improved results for the full year as management drive revenue and contain costs,” Balnaves said.
Australian Property Journal
