Dreamworld Revenue Down but Results Solid for Macquarie

Macquarie Leisure Trust Group has blamed rain and Easter falling outside the reporting period for a drop in revenue at its Gold Coast assets Dreamworld and WhiteWater World over the nine months ending March.

Macquarie Leisure has announced that revenue for Dreamworld for the period was $69.97 million, a decline of 4.7% compared with the same period the year before.

WhiteWater World had a revenue of $13.9 million for period, a drop of 3.4% on $14.4 million recorded in the previous period.

Attendance at Dreamworld dropped by 4.7%, but per capita expenditure remained consistent at $65.69.

Macquarie Leisure Trust Group's Chairman, Neil Balnaves noted "Macquarie Leisure Trust Group results have again highlighted the benefit of being a leader in the affordable leisure sector, which has proven resilient in the current economic cycle.

"Pleasingly, Dreamworld and Main Event have experienced an improvement in earnings trends on those reported for the half year to 31st December 2008, while d'Albora, Bowling and Goodlife have maintained strong revenue and earnings growth. On the capital management front over $24 million in AMF freehold sales have been completed or contracted since February at above book value while a further $15 million in sales are currently under negotiation."

Group Chief Executive, Greg Shaw noted that the Dreamworld earnings result demonstrated the success of cost management initiatives, with margins being maintained at 38.5% of revenue against 38.6% achieved in the pcp.

Since the end of the reporting period, Shaw also advised that the new Alien vs Predator combat laser experience had been well received by park patrons. The new attraction was built at a cost of $2.1 million.

Other key MLE results included:

• d'Albora Marinas earnings up 6% on prior corresponding period

• The Bowling division recorded total revenues of $79.23 million for the nine month period representing a 6.1% increase on revenues of $74.65 million in the pcp. Earnings before property costs from the Bowling division increased 22.4% to $25.27 million against $20.65 million recorded in the pcp. On a constant centre basis, bowling revenues increased 1.1% on the 9 months to 31 March 2008 whilst earnings before property costs increased by 5.5%.

Shaw advised "the Bowling division has continued to perform well in the current economic climate. In particular, the performance of new centres at AMF Strathfield, Kingpin Darling Harbour, AMF Villawood and our recently opened AMF Joondalup in Perth have all exceeded expectations. There has also been a strong improvement in operating margins over the pcp, from 27.7% achieved in the nine months to 31 March 2008 to 31.9% for the nine month period to 31 March 2009."

Shaw went on to state "AMF has recently secured a new flagship bowling site which is expected to open in early 2010. Agreement has been reached with the Rooty Hill RSL Club, Australia's largest RSL club with a current membership base of around 50,000, to establish a purpose built, state of the art, AMF bowling and laser tag facility as part of their broader entertainment complex in Sydney's western suburbs. Following the success of new facilities at AMF Strathfield and AMF Villawood, Rooty Hill is expected to enhance AMF's position as the dominant player in Australia's bowling heartland."

After completion of the Group's first standalone M9 laser tag facility at Strathfield, plans are also advanced to establish a number of new M9 laser tag facilities to complement existing AMF Bowling centres.

• Expansion of the Goodlife portfolio has seen the division deliver significant increases in revenue and earnings over the pcp.

Goodlife recorded total revenues of $51.83 million for the nine month period against $20.88 million recorded in the pcp. Earnings before property costs equated to $18.91 million against $7.75 million recorded in the pcp.