Ardent Leisure enjoys revenue boost

Strong results from its Goodlife Health Clubs division and its US theme parks have helped Ardent Leisure post a 13.2% rise in revenue for the first nine months of the 2012/13 financial year.

Revenues for the multi sector leisure group (which also operates AMF and Kingpin Bowling; d'Albora Marinas; and the Dreamworld, WhiteWater World & SkyPoint theme parks and attractions on the Gold Coast) were $336.72 million, compared to $297.47 million in the previous corresponding period.

Chairman Neil Balnaves explained that entertainment division sales were up 58.8% and the health club division up 56.2%, stating "the group has experienced a general strengthening in trading trends in the third quarter, with overall performance assisted by further diversification of our earnings streams."

Welcoming the Goodlife results, Chief Executive Greg Shaw stated "the Goodlife group continues to benefit from the increased scale and operating leverage delivered from the Fenix and Fitness First acquisitions.

"In the coming months, the division is expected to benefit from the maturity of recently opened clubs at Maroochydore on the Sunshine Coast, Dernancourt in Adelaide and Fountain Gate in Melboure."

The theme park division increased its revenue by 4.2% to $79.85 million despite poor weather conditions from late January through to March.

Shaw added that new attractions at Dreamworld were expected to build future market share, adding "the recent investment in strong new product at Dreamworld, including the DreamWorks Madagascar, Shrek and Kung Fu Panda precincts, the Pandemonium thrill ride and the return of the Big Brother series provide a strong foundation for building future market share."

Ardent Leisure also indicated that they would be looking to offer lower ticket prices at their theme parks outside of the peak school holiday periods.