Ardent Leisure suffers revenue fall

The Ardent Leisure Group (the owners of Goodlife Health Clubs and the Dreamworld and WhiteWater World attractions) has released their half-year financial performance results.
While the company reported a net profit of $9.71 million, for the six months to 31st December, up from $500,000 for the first half of last year, the results show an overall loss of revenue with core earnings falling 17.9% to $23.16 million from $28.23 million.

While revenue from the Ardent Leisure Group's attractions dropped 4.7% to $178.8 million from $187.64 million, Goodlife Health Clubs recorded total revenues of $35.9 million representing a 3% increase on prior year revenues of $34.8 million, with earnings growing by 10.8% to $14.1 million.

Ardent's bowling division recorded a 3.4% drop in revenues of $53.3 million, the Group attributing the decline to strong competitive cinema offerings and comparably unfavourable weather conditions in Western Australia and South Australia.

Group Chairman Neil Balnaves (pictured) explained that "the business has experienced mixed trading conditions with strong growth in health clubs, acceptable performances by the bowling and marina divisions and lower revenue and earnings at theme parks and main event entertainment,

"Despite these trading conditions, operating margins were once again improved across the majority of divisions."

The Group continues to grow with the recent acquisition of seven health clubs from Zest in Western Australia and the Q1 Observation Deck.

Dreamworld is set to open a new family attraction in April while one of the park's thrill rides will also be refurbished and re-launched in July. April will also see a new water thrill ride open at WhiteWater World.

Ardent Leisure's current share price is $1.56.