Village Roadshow (VRL) shares were sold off yesterday when it joined a rising number of companies revealing disruptions for first half or full year earnings.
Village shares fell more than 9% at one stage yesterday after it revealed that the Dreamworld (owned by Ardent Leisure (AAD)) disaster of late last year had impacted attendances at its extensive three parks in the surrounding area, as well as its Sydney-based park.
Village Roadshow, which owns Wet ’n’ Wild in Sydney and on the Gold Coast, as well as Warner Bros Movie World and Sea World (also on the Gold Coast), said the company’s theme parks had a solid start to the 2016-17 financial year until the Dreamworld tragedy.
"During the key trading period of December 2016, and January 2017, ticket sales have remained solid when compared with the prior corresponding period. International and interstate visitation remains in line with the prior year," Village said in a statement to the Australian Securities Exchange.
"However, attendance by the local Queensland market which previously represented approximately 60 per cent of attendances, has declined by more than 12 per cent on the prior year since the Dreamworld incident. Wet’n’Wild Sydney appears to have been similarly affected by the incident.
"Notwithstanding a minimal impact on ticket sales revenue, the decline in attendance has resulted in deterioration in food and beverage, retail and other in-park revenue. The ongoing impact of the Dreamworld incident will become clearer over the coming weeks."
The shares ended at $4.03, down more than 9%.
