Visitor numbers and profits rise at Rainbow's End

New Zealand Experience Limited, operator of the Rainbow's End theme park, has reported a profit of $1.488m for the year to June 2011. Excluding the impact of non-recurring items first recognised in the prior year relating to extended lease tenure and deferred taxes, the company has recognised a 9% rise in comparable full year profit. The year has seen visitor numbers rise by 20,000, with close to 294.000 guests having visited the Park.
Total revenue during the twelve months to the end of June was up 0.6% to NZ $10.58 million, with the company saying trading revenue rose 9% including a strong first half but a weather disrupted second six months.
In a statement, the Park operator commented "this result maintains the positive trend in revenue and visitation growth, despite continued pressure on disposable income levels", adding "this impressive achievement results from a year of continuing developments and new initiatives throughout the Park."
Total park expenses were up 6.9% to NZ$8.52 million, including employee costs rising 14% to NZ$3.94 million. When non-recurring factors to do with the lease of the site and deferred taxes were excluded, the company reported an underlying profit up 21% to NZ$1.45 million and a reported profit down 3.3% to NZ$1.49 million.
New Zealand Experience Chairman Tony Frankham advised "our emphasis over the last two years has been to bring more visitors back to Rainbow's End to experience our exceptional product, and despite what is still a difficult economic environment, we have achieved that and increased the level of spend per customer."
"New initiatives have been implemented on a continuous basis to provide a variety of offerings including an expansion of our 'Night Rides' series which has been extended from four to eight nights per year, and the introduction of our Easter festival evenings for the first time in Easter 2011.
"Our marketing emphasis has also targeted corporate and group function activity, with strong growth in these areas over the festive season in the lead up to Christmas 2010."
Rainbow's End employs up to 230 staff during peak times, the majority of whom are in the 16 to 24 age bracket - which is the age bracket currently experiencing the highest unemployment levels in New Zealand.
In addition, the Park assists the community through regular sponsorship programmes and through direct involvement with several key charitable organisations and schools throughout New Zealand. Along with many other New Zealand companies, Rainbow's End is pleased to have been able to support fundraising and structured events for the people of Christchurch during what has been and continues to be a very difficult time.
Recent developments at the park include a new stage and a centre court food area with planning and feasibility under way for another major capital project.