Surge in Dreamworld visitation contributes to Ardent Leisure revenue rise

Ardent Leisure has seen revenue for the December 2022 half year more than double on its 2021 performance with year-on-year income reaching $43.76 million as guests stream back to its Dreamworld, WhiteWater World and Skypoint attractions on the Gold Coast.

Eight months after the group sold off its USA-based Main Event for US$835 million ($1.2 billion) - a decision which contributed 97% ($649.5 million) to net profit for the half, the company reported earnings from continuing operations hit $32.2 million, rebounding back from a $15.9 million loss on the previous year.

Theme park attendance also grew by 67.4% year-on-year - despite a lack of international visitors - reaching 617,200 visitors, with Dreamworld ticket sales rising 84.3% during the period - their highest in six years.

Overall, the group posted a net profit after tax of $669.5 million in the first half of 2022/23 compared to a $36.8 million loss in the same period last year.

Ardent Leisure Chairman, Dr Gary Weiss said the company had endured a long recovery journey for exacerbated by the COVID-19 pandemic but said it was well capitalised to fund its future investments, which include over $50 million of new and upgraded rides and attractions.

Dr Weiss noted “the significantly improved trading performance demonstrates the resilience of our Theme Parks & Attractions business particularly during the recent challenging times.

“The Group now has ample cash to fund its investment in the theme parks and attractions business, and with no debt and unencumbered assets, has a solid financial foundation moving forward.”

Ardent Leisure Chief Executive, Greg Yong added “a return to positive EBITDA in the half for the first time in six years is a meaningful milestone in the recovery of this iconic business.

“Our strategy to focus on safety, be disciplined on costs to fund our priorities and to deliver an exceptional guest experience through brilliance at basics and providing memorable in-park interactions is yielding results.

“Economic headwinds remain front of mind, and it is prudent for us to regularly contemplate how to appropriately position the business to deal with these challenges.”

Adjusting for these items, earnings from continuing operations reached $300,000 for the period - up $16.7 million versus a $16.4 million loss in the same period in 2021, primarily driven by a solid recovery in the theme parks and attractions business.

Event programs such as globe riders, aerial acts, comedy acts and hydro stunts in the Dreamworld Pond proved to be popular with guests for the half, with the division recording an EBITDA of $3.3 million in the December half year.

The result compares to a loss of $11.8 million year-on-year despite the prior period benefitting from a $2 million injection from the Queensland Government’s Major Tourism Experiences Hardship Grant.

The group’s upcoming investment at Dreamworld includes the new Wave Swinger ride, as well as a new ‘Rivertown’ precinct offering a vintage cars attraction and a new major family rollercoaster. Anticipated to cost $35 million, the new ‘Jungle Rush’ coaster will feature the world’s first inclined turntable, and include 12 airtime elements in addition to the ability to run both forwards and backwards.

In August 2022, Dreamworld and WhiteWater World were issued with Major Amusement Park (MAP) Licences by the Workplace Health and Safety Queensland (WHSQ) under the Work Health and Safety Regulation 2011 (Qld).

The licensing regime for amusement parks in Queensland is a world-first, introduced by the Queensland Government in 2019 with the objective of achieving world-class best practice safety standards in theme park operations.

The company said the granting of the MAP Licences represents the culmination of several years of extensive work by the business, in consultation with WHSQ, demonstrating a robust safety case that provides a holistic framework for the management of health and safety at both Dreamworld and WhiteWater World.

Images: Queues for Dreamworld's Steel Taipan (top), the concept for its new Rivertown precinct (middle) and WhiteWater World (below).