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Village Roadshow investor day sends stock crashing
MYRIAM ROBIN JUNE 11, 2019
Village Roadshow fell 9.1 per cent on Friday afternoon, despite an initially muted reaction to an uncontroversial strategy presentation it posted in the morning.
The falls coincided with a 2pm sit-down Q&A theme parks boss Clark Kirby held for two dozen of the company's large holders and analysts. For many, it their first substantive interaction with the executive. Combining the share price reaction with our other sources of intelligence suggests he didn't exactly impress.
Kirby is the presumptive CEO, anointed by outgoing chief Graham Burkeas his "preferred candidate" when he announced his own retirement after 30 years in February (Burke was absent from the investor day). Kirby is also the son of the company's chairman Robert Kirby, and grandson of its late founder Roscoe. For Village Roadshow – a company that discloses its purchases of bikinis from Burke's daughter Lisa and decorates its offices with artwork rented on company dime from the Kirby family – this is more or less par for the course.
Village Roadshow heir Clark Kirby's first major investor briefing was accompanied by a 9 per cent share price plunge. AFR
But the company – 42 per cent owned by the Kirby family and its allies – still saw fit to hire top-tier recruiters Egon Zehnder to conduct an extensive if probably redundant CEO search. Asked how much the company was paying, the response given to investors on Friday was that "Egon Zehnder doesn't come cheap".
Well, of course they don't. And neither do the stretch white limousines the company hired to ferry said investors around. If any were unsure why the company spends so much on corporate overhead, now they know!