Ardent Leisure shows doubling of revenue in the first six months of 2021/22 financial year

Dreamworld owner Ardent Leisure has reported results for the six months from July to December last year that show increasing revenues and a significant fall in net losses.

Revealing its results for the six months ended 31st December 2021 to the Australian Stock Exchange, the company announced a net loss of $36.8 million, a 55% reduction from its $82.3 million at the same time last year backed by a 993% improvement on earnings before interest, tax, depreciation and amortisation (EBITDA) to $43.6 million.

As a result, shares in the company rose by more than 17% on Friday.

The improved position was driven by strong performance of its US-based Main Event business, which yielded a 109.1% increase in revenue to $136.2 million (US$98.4 million), boosted the group’s operating revenue to $275.5 million, a 100.2% increase.

Despite increased earnings off the back of higher pass sales and improved attendance compared to last year, the Australian theme parks and attractions posted a $12.2 million half-year loss, up from $3.7 million at the same time last year, largely a result of a $6 million decrease in Federal and Queensland Government grants which boosted last year’s earnings.

With the improved results seen as being indicative of a recovery of the attractions and theme parks sector, Ardent Leisure Chairman, Dr Gary Weiss stated “the recent reopening of Queensland borders, easing of restrictions and successful launch of the Steel Taipan rollercoaster in December 2021 has seen the Theme Parks and Attractions business pick up demand in both local and interstate markets during the latter part of the period.

“However, this was somewhat dampened by a surge in Omicron cases and impediments to travel related with state government COVID-19 testing requirements.”

Ardent’s Theme Parks and Attractions Chief Executive, Greg Yong said the Omicron wave had foiled optimism after the re-opening of the Queensland border, adding “despite this, the business has seen increased ticket sales and attendances for the period, with January and February results suggesting demand is improving for leisure experiences.

“While it was pleasing to see our businesses operational for most of the half, demand was significantly impacted due to the Delta wave and associated border and public health restrictions.

“Although the businesses continued to incur significant costs while trading, this was not supported to the same extent seen in the earlier stages of the pandemic when the Australian Government-subsidised businesses through the JobKeeper scheme.”

Ardent Leisure has a market capitalisation of $758 million.

Image: Queues for Dreamworld’s Steel Taipan rollercoaster following its December opening.