Dreamworld tragedy continues to hurt Ardent Leisure

Dreamworld tragedy continues to hurt Ardent Leisure

Tourists and locals alike are still avoiding Ardent Leisure's Dreamworld theme park nearly two years after the 2016 tragedy that killed four park visitors.

Visitors have been slow to return to the Gold Coast theme park, resulting in Ardent reporting an $84 to $94 million loss for FY18.

The loss is even worse than FY17, when Ardent reported a $63 million full year loss.

As a result of these figures, Ardent has cut $75 million from the value of Dreamworld and flagged a non-cash impairment charge of $38 million related to five leisure centres in the US.

Shares in the embattled entertainment company have dived following the release of its preliminary, unaudited results. At 1.55pm AEST shares in Ardent were down 3.7 per cent to $1.93 per share.

In total, Ardent's theme park operations are estimated to report a loss of $91 million to $95 million for the FY18 period, compared to $98 million in FY17.

A $38 million impairment charge will hit Ardent in its bowling alley business in the US. The total underlying earnings of the bowling and games centres division will dip to $12 to $15 million, down from $46 million a year earlier.

This unfortunate trading update comes just a month after Craig Davidson, chief executive of Dreamworld, resigned. Davidson was in charge of Dreamworld during the 2016 tragedy.

Ardent expects its full year report to be released on August 22.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Business success comes from thinking inside the box for TAXIBOX founder
Partner Content
On a first glance, the world of storage solutions might not seem particularly exciting ...
TAXIBOX
Advertisement

Related Stories

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Will philosophy and ‘counterfactuals’ help us unlock the mysteries of AI?

Artificial intelligence is increasingly being rolled out all around...

ACCC launches probe into misleading social media influencer posts

ACCC launches probe into misleading social media influencer posts

Australia's consumer watchdog is cracking down on social media ...

Takeover talks reignited between Tyro and Potentia Capital

Takeover talks reignited between Tyro and Potentia Capital

Talks of a potential takeover are back on between Sydney-based Tyro...

Go1 acquires AI-powered ed-tech Anders Pink

Go1 acquires AI-powered ed-tech Anders Pink

Queensland-based Go1 has this week acquired a UK ed-tech partner fo...