Dreamworld owner Coast Entertainment Holdings reports increased net profit in last financial year

New attractions saw Dreamworld and Skypoint enjoy increased visitation, ticket sales and revenue in the 2023/24 financial year with owner Coast Entertainment Holdings Limited (CEH) reporting positive EBITDA and increased net profit in its end-of-year results.

ASX-listed CEH, which also owns Gold Coast waterpark WhiteWater World, has advised that new attractions and offerings resulted in increased guest numbers, ticket sales and revenue last financial year, despite trading being impacted by severe storms on the Gold Coast during its normally peak Christmas season.

In a statement to the ASX, CEH advised that showed ticket sales were up 3.1% - the highest increase since 2016 - visitation grew by 14.3% and its revenue of $87 million was up 3.8% on the previous year.

Net profit was up 99.6% to $2.6 million by comparison with $664,700 the previous year.

The group overall recorded its first positive earnings before interest, tax, depreciation, and amortisation (EBITDA), excluding specific items, since the 2016 ride tragedy.

SkyPoint achieved record earnings while Dreamworld had its highest year on year increase in ticket sales since 2016.

Visitation at both attractions for the start of the current financial year already showing strong year-on-year growth with EBITDA up 56% for the theme parks and attractions division.

CEH said its year on year revenue growth came despite the previous year benefiting from $2.6 million in Covid stimulus payments.

The launch of new attractions, including Kenny & Belinda’s Dreamland precinct, the Dreamworld Flyer and the Wiggles Big Red Boat Coaster, was credited with the higher visitation.

The company advised that a shift in spending from one-day tickets to annual passes “has driven repeat visitation, albeit with some dilution to per capita yields”, noting “SkyPoint, which was previously heavily reliant on international business, continued to perform well despite international visitation remaining below historical levels.

“The business has delivered record revenue and EBITDA performance in the year, driven by ongoing focus on driving attendance and yield in local and interstate markets and gradual recovery in international visitation.”

The statement said costs had been squeezed by 22.6% thanks to a head office restructure and a 50% cut to directors’ fees.

Explaining that consumer businesses were challenged by the economic landscape last financial year,

CEH Chief Executive, Greg Yong advised “the two severe weather events during the peak summer trading period added further challenges to FY24 trading performance.

“Nevertheless, we achieved growth in key financial and non-financial metrics, including strong guest satisfaction scores, despite Dreamworld being impacted by significant construction activity throughout the year.

“The growth in attendances demonstrates that our new products and services are resonating well with our guests.”

The company sustained more than $2 million damage and loss of income in the Christmas and New Year’s storms and their resulting power outages, and had received $700,000 in insurance payments last financial year.

A further $1.6 million of progress payments had been received in the current year.

Dreamworld was forced to close for three days, and Whitewater World for five days, over the peak season.

As at 25th June 2024, the group held $89.2 million cash. It paid out $18 million to shareholders in buybacks throughout the year.

CEH Chairman Gary Weiss said the company was committed to restoring value for stakeholders, stating “looking ahead, we remain focused on unlocking further potential value, underpinned by the opening of new attractions including the new Rivertown precinct, the return of international visitors to historical levels, and optimisation of the Group’s land holdings

“These opportunities are expected to enhance our operational landscape and position the group strategically for continued growth.”

Work undertaken by Theme Park Support in replacing electrical and control systems to help revitalise Dreamworld’s Gold Coaster - one of the theme park's signature rides - is the subject of a feature in Australasian Leisure Management issue 163.

Images: Dreamworld’s Gold Coaster (top), storm damage at the theme park in December last year (middle) and Greg Yong (below).