Ardent Leisure reports rising revenue and Greg Yong’s promotion to group Chief Executive

Announcing higher revenues for the 2021/22 financial year, Ardent Leisure has revealed a positive outlook as it reported that it is now debt free following the sale of its US-based Main Event business.

With revenues returning to levels not experienced since the deaths of four guests at its Dreamworld theme park in 2016, the attractions operator has revealed the promotion of its theme parks division Chief Executive Greg Yong to the role of Group Chief Executive.

Delivering its report for the last financial year, Ardent Leisure shared a positive outlook with rebounding visitation at its theme parks, albeit that it recorded lower net earnings in 2021/22.

The company has told investors that ticket sales at its core theme parks business, now consisting of Dreamworld, WhiteWater World and SkyPoint on the Gold Coast, are the highest they’ve been since the 2017 financial year, reporting a 37.3% jump in revenue in to $49.5 million - driven by a large uptake in annual passes by local residents and the rebound in domestic tourism.

Visitation to its theme parks was up 18.4% from the previous year while revenue per ticket is now 36% higher than before the 2016 deaths.

Commenting on the results, Ardent Leisure Chairman, Dr Gary Weiss advised “following the divestment of our Main Event business in June, the board reviewed Ardent’s management structure and believes it is appropriate that Greg assumes overall management responsibility for group activities.

“Since being appointed as theme parks and attractions CEO in April 2021, Greg has shown outstanding leadership and is highly regarded by the board and all of the team members he leads.”

Dr Weiss said the sale of Main Event business, consisting of 51 social entertainment centres in the USA, has placed the group in a “solid financial position, with all debt being repaid and significant cash being retained to recover, grow and develop the theme parks and attractions business.”

He added “the group now has the financial ability and capacity to ensure that the recovery program that we have overseen in our Australian business is given every opportunity to succeed.”

Noting that he had never been more confident in the recovery of the business, Yong advised “excluding the impact of COVID-19 associated cost reductions and government support, Dreamworld ticket sales, in park revenues, and per capita spend were the highest seen since FY17 while the underlying EBITDA loss was the lowest for the same period.

“We note that international visitation is still well below pre-pandemic levels, and this is having a material impact on non-holiday periods whilst the macro-economic outlook remains uncertain. Despite these factors, the business is well positioned with a strong, unencumbered balance sheet, fully owned land holdings and a pipeline of exciting new attractions set to be announced over the next six months.”

Ardent’s income was aided by $10.5 million in hardship payments, largely from the Federal Government’s JobKeeper program while the company still had $18 million of a $63.7 million secured loan provided by the Queensland Government in 2020 for its theme parks division remaining. It paid $21 million of the loan down in July due to a trigger of a clause as a result of excess cash.

Images: A young guest enjoying WhiteWater World waterpark (top) and Greg Young welcomes delegates to Dreamworld during this year's Australian Amusement, Leisure and Recreation Association (AALARA) conference (below).