Fine weather boosts performance of Gold Coast theme parks

A rise in visitor numbers to the Gold Coast and fine weather during December looks set to boost the performance of Ardent Leisure and Village Roadshow’s theme parks through summer.

In an analysis of Ardent Leisure and Village Roadshow’s performance, Citi Research analyst Sam Teeger highlights how lower than average December rainfall and rising domestic passenger numbers at the Gold Coast airport are boosting visitation to Dreamworld, WhiteWater World, Sea World, Warner Bros. Movie World and Wet’n’Wild Gold Coast.

Teeger also suggests that the birth of two tiger cubs at Dreamworld and the re-opening of the Green Lantern roller coaster at Movie World are likely to have positive impacts on visitation at the respective parks.

In a share and performance analysis, Teeger recommends Village Roadshow shares, stating "Village still remains our preferred pick in the sector.

"Gold Coast theme parks represents 42% of Village's full year 2016 estimated earnings before interest, tax, depreciation and amortisation, compared to 25% at Ardent."

Teeger also makes other significant observations on the sector, and the possibility that Ardent Leisure may look to sell Dreamworld/WhiteWater World.

Following an earlier analysis of the impact of a potential theme park development on the Gold Coast by China’s Dalian Wanda Group, he suggest Ardent Leisure, which owns Dreamworld and WhiteWater World, “as a potential though reluctant seller of one of its theme parks to Chinese giant Wanda, who has announced it wants to build a theme park at the Gold Coast and is current in talks to buy (Hollywood film studio) Legendary Entertainment.”

Citi has suggested that Ardent Leisure could attract between $228 million to $360 million for its theme park which could help fund 20 to 30 new Main Event centres, its highly profitable US-based family entertainment centre division.

Teeger also highlights the growing importance of memberships (an expansion of former season pass schemes) to the Gold Coast’s theme parks.

Image: Dreamworld.

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