Easter visitation performance drives Ardent Leisure recovery

Advising that it has enjoyed its “busiest Easter in several years”, theme park operator Ardent Leisure has advised of strong income growth rates for the calendar year.

The owner of Gold Coast attractions Dreamworld, WhiteWater World and Skypoint reported significant increase in attendances and per capita revenues in the March quarter compared to the prior corresponding period, with revenue up 47.6% at $22.1 million.

April saw Ardent generate sales of $8.1 million, representing an increase of 5.5% year-on-year. While lower than the annual inflation rate of 7% as of the March quarter, it aligns with the increase in retail turnover nationally for the same period.

This follows a successful half year to December, with 136.5% year-on-year growth in revenue to $43.7 million - a figure nominally higher than the $38.7 million recorded for the same six months pre-COVID, although up only marginally when considering inflation.

However, both periods have to be compared with times 12 months earlier that were impacted by pandemic restrictions.

Ardent Leisure's Theme Parks & Attractions business reported EBITDA of $4.3 million excluding specific items for the December half, versus a $4.2 million EBITDA loss for the same period in 2019, and the group notes that earnings momentum has continued.

In a statement the company advised “despite emerging cost pressures, the business has continued to deliver a positive EBITDA result (excluding Specific Items) for both the third quarter and April 2023, but at more subdued levels compared with the first half of the year. The group’s corporate costs have remained consistent with 1H23 levels.

"The Group is of the view that the current economic headwinds are episodic and not emblematic of the leisure industry. Further, while international visitation to date remains low compared to historical levels, this is gradually recovering and presents upside potential for both Dreamworld/WhiteWater World and SkyPoint when these markets return to historical levels.

"Management remains highly focussed on effective and disciplined management of all expenses, noting that there are certain safety and engineering priorities which cannot be compromised."

Ardent is currently reinvesting in the business and "remains well capitalised to fund the ongoing recovery", focusing on delivering its recently announced pipeline of new attractions.

At Dreamworld this includes a new Wave Swinger, a new childrens' area with branding from Play School, Bananas in Pyjamas and The Wiggles, a vintage cars adventure area and the rollercoaster Jungle Rush, as well as a refurbishment of its landmark Giant Drop ride.

Image credit Dreamworld.