Dreamworld operator, Ardent Leisure, is predicting better-than-expected earnings, despite disappointing margins for Main Event.
Core earnings of $76 million are expected. This figure is a slight improvement on the company’s predicted range of between $73 million to $75 million.
Austrailian-based Ardent owns FEC and bowling chain, Main Event Entertainment, headquartered in Dallas.
Main Event revenue grew by 30% to $226.2 million following new US centre openings. Despite this, its earnings grew by only 5.6% and margins fell.
Revenue for Ardent’s bowling and entertainment centres in Australia also dropped, impacted by the closure of Kingpin Crown for refurbishment.
According to Ardent, its theme parks operations were hit by a 34% fall in revenue to $70.9 million, reflecting the Dreamworld closure and drop in visitor numbers after it reopened. The park was closed for 45 days last year following a fatal accident. The company says the recovery of Dreamworld is likely to take two years.
Ardent chief executive, Simon Kelly, described Main Event’s results as disappointing and said they provided plenty of opportunities for improvement. He added that Dreamworld had faced very challenging trading since reopening, but insisted that it was on the path to recovery.
Image courtesy Ardent Leisure
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