Village Roadshow has again lowered its earnings forecast as it struggled to lure visitors to its Gold Coast theme parks throughout a wet March.
The company now expects a net profit somewhere between a A$10m ($7.7m) loss to break even for the 2018 financial year. Village Roadshow previously revised its figures in January when it predicted a profit between A$12m ($9.3m) and A$17m ($13.2m).
Competition from the Commonwealth Games and a wet March were cited as the reason for low attendance numbers. However, the company hopes that the success of the games and associated media coverage will lead to tourism growth in the region.
As a result of the profit warning, Village Roadshow’s shares dropped 48 cents, or 15.2%, to A$2.67, wiping out almost A$78m ($60.6m) from its market value.
Theme parks across the Gold Coast are struggling to recover from the impact of the fatal accident at Ardent Leisure’s Dreamworld in 2016.
Clark Kirby, CEO of Village Roadshow Theme Parks, told Blooloop last month: “Four lives were lost, and it really shook the foundations of the whole theme park industry, both in Australia and worldwide. Since then, it has been a process of bringing people back into the parks and reminding them what an incredible experience theme parks do offer.”
Village Roadshow’s cinema division has also struggled with weak attendance. It is counting on a string of blockbusters, including Avengers – Infinity War, Solo – A Star Wars Story and Jurassic World – Fallen Kingdom, in the last quarter to shore up its numbers.