Aug 25, 2023

Jacob ShteymanAAP Theme park operator Ardent Leisure has recorded its first full-year profit in seven years after a rollercoaster few years following the deaths of four tourists at Dreamworld. The group, which also owns WhiteWater World and Skypoint on the Gold Coast, announced a net profit of $664.7 million on Friday after a $97.4 million loss the year before. Ardent chief executive Greg Yong said the result was a significant achievement given the substantial challenges the organisation has faced since the 2016 tragedy and the COVID-19 pandemic. "We are in the midst of an incredibly exciting time, with new attractions launching progressively over the coming years," Mr Yong said. Theme park operating revenue increased 70 per cent from the prior year to $83.9 million with total attendances up 39 per cent, although growth slowed in the second half as inflationary pressures bore down on consumers. But the news was not all positive. The figures were inflated by the sale of Ardent's US-based entertainment centre chain Main Event to Dave & Busters for $682.4 million, meaning the group's continuing operations were $17.7 million in the red. "Against the backdrop of the aggressive interest rate increases over the last 15 months and the resultant impact on consumer spending on discretionary items, we are clearly in a difficult operating environment," Mr Yong said. "It is our view that this is episodic rather than emblematic of our industry and further, we believe that if there was ever a time for an 'experience economy', it is now." The company announced on Thursday it had settled a shareholder class action lawsuit filed in June 2020 to recoup the losses of people who bought shares in the company in the two years before the tragedy on the Thunder River Rapids Ride. Ardent would incur a one-off cost of about $4 million in connection with the settlement and the balance of the settlement payment was fully insured, the company said in a statement to the ASX. Ardent announced an on-market buyback of 10 per cent of its shares after determining its cash balances of $141.4 million were surplus to requirements.