Ardent Leisure Group Reports Preliminary FY23 Results

Ardent Leisure Group Limited (ASX: ALG) has provided a preliminary update on its unaudited trading performance for the fiscal year ending on June 27, 2023. The Group's Theme Parks & Attractions business has shown year-on-year growth in visitation and revenue, with operating revenue for the last two months of FY23 up 21% compared to the previous corresponding period. Despite macroeconomic challenges and a strong prior year, 2H23 revenue exceeded the prior period by 30%.

Strong Performance and Recovery

Unaudited revenue for the full year reached AU$83.9 million, a 70% increase compared to the previous year and 25% above pre-COVID levels in FY19. This marks the highest annual revenue for the Theme Parks & Attractions business since FY16, even with international visitation still below historical levels.

Improvements in Ticket Sales and Guest Experience

The aggregate value of ticket sales in FY23 reached its highest level since FY16, surpassing subsequent years. Additionally, revenue per capita in FY23 was 54% higher than in FY16. Both Dreamworld/WhiteWater World and SkyPoint achieved outstanding guest review scores, outperforming other Gold Coast theme park peers.

Modest 2H23 Performance

Following a solid performance in 1H23, the Theme Parks & Attractions business experienced a slight moderation in attendance volumes and revenues in 2H23. Economic conditions and inflationary pressures impacted discretionary spending. Despite these challenges, the business expects to break even in 2H23 and achieve its first positive full-year EBITDA result (excluding Specific Items) since FY17.

Future Growth and Development

Management remains focused on delivering a compelling guest experience and cost discipline. They anticipate further improvement as new capital investments are made, which will benefit from increased international and interstate visitation. The Group aims to return the business to historical earnings levels through its pipeline of new attractions.

Surplus Land Development

The Group owns approximately 55 hectares of land and is working on achieving Preliminary Development Approval for the entire site. Positive feedback and support have been received thus far, but further engagement with authorities and technical reports are required to progress the approval process.

Capital Management and Funding

As of June 27, 2023, the Group holds cash balances of approximately AU$141 million. With planned capital investments in new rides and attractions, the Group is reviewing its capital position and funding requirements. Prudent cash management is a priority to ensure operational and capital needs are met. The Group is also exploring options for managing its surplus cash, including the anticipated receipt of contingent consideration from the sale of Main Event.

Further updates on capital management and the release of FY23 results will be provided by the Group.

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