Ardent Leisure records profit dip but looks at FEC expansion

Having posted a 34.4% decline in net profit for the financial year to the end of June, compared to the 2013/14 result, with profits of $32.1 million, Ardent Leisure is looking to its perennially high performing Main Event business to drive future profit growth.

The decline in net profit contrasts with Ardent reporting a 19% rise in revenues during the 2014/15 financial year to $594.6 million -  largely a result of the performance of its US-based Main Event family entertainment centres division.

Having been reported as looking at further international expansion, Ardent Leisure is now considering expanding the Main Event division centres by converting ten pin bowling alleys at its AMF and Kingpin Bowling facilities into FECs.

The group, which operates Goodlife Health Clubs; d'Albora Marinas; and the Dreamworld, WhiteWater World & SkyPoint theme parks and attractions on the Gold Coast, reported flat revenues and earnings for its Australian bowling alleys over the past year.

Ardent reported that depreciation and amortisation of property and equipment had increased during the year, while a revaluation of investment properties also weighed on the group. Meanwhile, corporate costs increased by $2.5 million to $15.1 million.

Commenting on the results, Ardent Chairman Neil Balnaves said Main Event was the stand out division, with US dollar earnings lifting 63.8% during the year.

Balnaves stated "theme parks and bowling have reported broadly consistent trends with the third quarter, while marinas had a softer final quarter, due to the impact of the redevelopment works at The Spit Marina and lower fuel sales in the winter period."

Looking to the future, Ardent Leisure Chief Executive Deborah Thomas said the group  was reviewing opportunities to convert some of its key bowling alleys into multi-attraction family entertainment centres.

Ardent opened its first such centre, Kingpin Darwin, on 1st August, with Thomas describing its first two weeks of trading as "exceptional".

She explained "the combination of bowling, arcade games, laser skirmish, great food and coffee has been well received in the Northern Territory."

Ardent's Gold Coast theme parks - Dreamworld and WhiteWater World - recorded flat earnings and revenue for the year.

Ardent described the result as solid given trade had been affected by unprecedented rainfall and Cyclone Marcia during the third quarter.

Image shows the newly opened Kingpin Darwin.

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