Numbers Rise But Profits Dip for Ardent Leisure

Ardent Leisure has reported that its 2010 core profit has slumped 23.6% to $34.5 million.

Ardent Leisure, whose operations include Goodlife Health Clubs, Dreamworld, AMF Bowling Centres and D'Albora Marinas was affected by a slump in Gold Coast tourism but have suggested that the tide has turned.

Ardent's theme park division, which includes Dreamworld, WhiteWater World and the Q-Deck in the Q1 building, weighed on the results despite a healthy 9.6% jump in attendances to 2.1 million, with growth driven by the contribution from Q-Deck which was acquired in December last year. However, this was not enough to keep buoyant its theme park revenue which fell 4.8% to $98.6 million.

The theme park division posted earnings before interest, tax, depreciation and amortisation of $33.2 million, down 13.8% from $38.5 million.

A growth in visitor numbers was offset by a drop in average spending from $53.96 a person to $46.89.

Despite the weak results from the Gold Coast, Ardent remains confident in the long-term future of its operations on the tourism strip.

The board has approved a capital expenditure plan over the next three years to reinvigorate attendances, starting with the relaunch of the Tower of Terror II ride next month.

A planned walkway atop the Q1 building is set to be built in the second half of this financial year, subject to council and regulatory approvals.

Ardent also is pushing to improve international visitor numbers which fell a further 0.2%.

Ardent's Chief Eexecutive Greg Shaw said there had been a 'strong rebound' in theme park revenues since the end of last financial year.

Revenues for July jumped 22.8% to $10.6 million compared with a year ago, pointing to a better year.

Ardent Leisure's latest bottom-line result is a sharp improvement on 2009.

This year's $19 million statutory profit is a significant turnaround to last year's $796,000 loss which was affected by asset writedowns, foreign exchange losses and higher interest costs.

The final distribution is 4.25c per stapled security, bringing the full-year payout to 10.75c.

Image: Dreamworld's popular Thunder RIver Rapids ride.

18th February 2010 - REVENUE DROP FOR ARDENT LEISURE