Leisure groups report huge profit rises

Leisure industry giants Ardent Leisure and Village Roadshow report massive profit increases.
The Ardent Leisure Group has reported full year profits of $36.143 million, an 89.8% increase, while Village Roashow have reported net profits of $185.52 million, up 96% from the previous reporting period.
Ardent Leisure, which operates Gold Coast theme parks Dreamworld and WhiteWater World along with AMF Bowling Centres, Gold Coast observatory SkyPoint, Goodlife Health Clubs and d'Albora Marinas, said its net profit was $36.143 million, up from $19.06 million last year.
Revenue from ordinary activities was up 7.3 per cent to $375.9 million, from $350.4 million for the previous corresponding period.
The Group said its strong income came came from adding a number of assets to its portfolio, including SkyPoint and several health clubs in Western Australia and Victoria.
Despite a decline in overseas visitor numbers as a result of the high Australian dollar and natural disasters in Japan and New Zealand, Ardent reported an increase in visitors to its Gold Coast theme parks, DreamWorld and WhiteWater World.
It reported a solid summer performance, despite the Queensland floods and unprecedented wet weather, and said its popular one ticket, two theme parks unlimited value offer drove revenue and attendance.
Meanwhile, asset sales have helped Village Roadshow post a rise in its full year net profit in a climate of "unprecedented commercial turbulence".
The theme park and cinema operator reported net profit of $185.52 million, up 96% from the prior corresponding period.
The result was lifted by the sale of the Sydney Attractions Group to Merlin Entertainment and the sale of its 52% stake in radio group Austereo to Southern Cross Media.
Excluding discontinued operations and other material items, Village said net operating profit after tax was $31.3 million, down 10.6% from the prior year.
In a statement Deputy Chairman John Kirby explained "modern times have seen unprecedented commercial turbulence.
"However, the quality of VRL's assets and businesses stand strong, and we face the future with confidence."
In terms of current trading, Chief Executive Graham Burke said its cinema exhibition business had been "very solid" in July thanks to the final Harry Potter instalment, and August was also looking very solid and tracking ahead of last year.
Burke added "we are now in the business of selling entertainment, and right now people are looking to buy low cost escapes from their day to day worries.
"When you consider the unprecedented months of heavy rain followed by the Queensland floods, the group's result is a testament to the power of our overall business," he said.
Village said a review of corporate overhead costs had identified about $10 million in savings earmarked for 2011/12.