Dreamworld operator Coast Entertainment reports strong financial performance

Coast Entertainment Holdings Limited, the operator of Dreamworld, WhiteWater World and the SkyPoint Obeservation Deck, has reported a strong financial performance for the 2024/25 financial year, with a notable increase in visitation and operating revenue.

Advising that its full-year revenues were its strongest since 2016, when four Dreamworld guests died due to a ride malfunction, the Gold Coast attractions operator, formerly known as Ardent Leisure, said operating revenue of $96.4 million for the year ended 24th June was up 10.8% on the prior year while visitor numbers rose 11.2%.

In a statement, Coast Entertainment advised “this growth demonstrates the resilience of the business in a challenging economic environment, particularly within the consumer discretionary sector, and once again marks the group’s highest revenue for the continuing business since financial year 2016.”

The company said it had increased ticket sales by selling more annual passes to local tourists and by targeting major sales events such as Black Friday. International visitor numbers are gradually picking up but remain low by historical standards.

Noting that international tourists have been slow to return after the pandemic, explaining, the statement explained “both the volume and mix of international visitation remain markedly different from pre-pandemic trends, with visitation from Asian markets (particularly China) still well below prior levels.”

Coast Entertainment has struggled since the 2016 tragedy, but in 2023 it settled a class action related to the disaster. It also announced plans to unlock more value from surplus land around its Coomera site through a major property development.

The City of Gold Coast has yet to approve the proposed development, which includes hotels, restaurants and high-density residential property.

The company is pushing for the Queensland Government to exercise 'call-in' powers to fast-track the development application, but as of yesterday's announcement said no decision had been made.

The ASX-listed company continued to raise the prospect of a legal challenge if restrictions placed on the development proved too onerous.

It added “the group has previously indicated that conditions proposed on its development application by the State Assessment and Referral Agency may be challenged if they were considered unduly restrictive, unworkable or otherwise onerous and were adopted by Council when its decision is made.”

Coast Entertainment said it was 79% of the way through a planned share buyback, having secured $14.5 million worth of its shares since the program started in 2024. It expects to resume the buyback after pausing the program to wait for its full-year results to become clearer.

Coast Entertainment shares fell by 2.6% after the announcement to trade around 38¢ - the lowest for more than a year.

Dreamworld recently celebrated the 30th anniversary of its Tiger Island attraction.

Images: Dreamworld's Steel Taipan rollercoaster (top) and Tiger Island (below).