Ardent shows signs of recovery in theme parks following Dreamworld tragedy
Dreamworld CEO Craig Davidson, a staff member and Ardent Leisure CEO Deborah Thomas at the reopening of Dreamworld on December 10, 2016. (Photo by Glenn Hunt/Getty Images)
Dreamworld operator Ardent Leisure has noted tentative signs of improvement at its troubled theme parks division in February despite logging another sharp drop in revenue.
For the month, the theme parks unit — dominated by Dreamworld but also including WhiteWater World — booked revenues of $4.4 million, a level 35 per cent below last year’s reading.
“This represents an improving trend against December 2016 and January 2017, which respectively recorded reductions in revenues of 63 per cent and 50.4 per cent on the prior corresponding periods,” the company said.
Ardent (AAD) has provided monthly updates on Dreamworld since reopening the theme park in December, with a dramatic impact on foot traffic noted since a tragic ride malfunction in October claimed the lives of four customers.
Ardent plans to continue providing monthly reports until the end of fiscal 2017.
“As the park continues its return to normal trading it will be supported by the launch of a new brand campaign featuring the song ‘Pure Imagination’ performed by Guy Sebastian and supported by the Yugambeh Youth Choir,” the company said in a statement.
Its narrowing of the gap in revenue to the prior corresponding period coincided with a modest improvement in foot traffic at Dreamworld.
For February, the number of customers entering the park was down 33.6 per cent against last year.
This compared favourably against heavier declines of 44 per cent and 63.5 per cent in the prior two months.
Ardent Leisure shares edged higher on the update, climbing 1.3 per cent to $1.575 by 10.20am (AEDT)."
Pretty balanced article from the Australian Business Review yesterday. Trend looks solid. Easter will give a very good indication re the recovery.
------------------------------------------------------------------------------------------------------------- This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.
AAD Price at posting:
$1.64 Sentiment: Buy Disclosure: Held
