Ardent Leisure says it will suffer an $84 million to $94 million loss for 2017-18, with cuts to the value of Dreamworld theme park in south-east Queensland, plus impairments on its US entertainment centres business hurting the results.
That will take the losses for the past two financial years to more than $150 million at worst.
The loss comes on top of the $62 million loss recorded for 2016-17 as the company felt the full shock for the 2016 tragedy at Dreamworld that claimed four lives. An inquest into the deaths is continuing.
"FY18 EBITDA includes a $75 million Dreamworld revaluation decrement, $6 million of Dreamworld incident costs (net of insurance recoveries), SkyPoint revaluation decrement of $4 million and $1 million of other asset impairments and non-cash losses, Ardent said in yesterday’s announcement.
The revaluation adjustment for Dreamworld reflects slower recovery in attendance at the theme park than projected previously,” Ardent said in Monday’s announcement.
There will also be a non-cash impairment charge of $38 million associated with five underperforming locations in the company’s Main Event business in the US.
The Dreamworld theme park continues to struggle following the 2016 tragedy that claimed four lives, with park owner Ardent Leisure saying the recovery in patron numbers is taking longer than expected.
"Revenue from the Australian Theme Parks division was impacted by continued slow recovery post the Thunder River Rapids ride tragedy which occurred in October 2016, discounted ticket pricing, and some adverse weather conditions,” Ardent explained yesterday.
"Net debt as of 26 June 2018 was approximately $11 million, reflecting the use of proceeds from the sale of the disposed businesses to pay down the current syndicated facility.
"The Group intends to replace the current debt facilities with new facilities better suited to support the growth and capital requirements of the Main Event and Theme Park businesses,” the statement added. Ardent shares were down 2.3% to $1.95.
