Ardent Leisure Group HY19 Financial Results

[aaronm]

59 minutes ago, GoGoBoy said:

It’s a pity Ardent don’t look at Dreamworld’s own history books to realise that each major turning point for DW in terms of a positive trajectory for profits and attendance came about with the introduction of major new attractions... Wipeout, Tower of Terror, Nickelodeon Land. The answer does not lie in retreat.

I cannot think of a single troubled theme park that has turned around on the back of spending no money.

Next stop for Dreamworld is either a new owner or closing forever.

[RossL]

6 hours ago, AlexB said:

In the coming weeks.

I prefer the answer of "not this week", still probably correct for a couple of months.

[DaptoFunlandGuy]

On 22/02/2019 at 11:53 PM, RossL said:

I prefer the answer of "not this week", still probably correct for a couple of months.

The issue is, 'in the coming weeks' will eventually be right, assuming it does eventually open.

'Not this week' will eventually be wrong, unless it never opens.

[Mark Shaw]

On 22/02/2019 at 10:32 AM, Brad2912 said:

Yep.. just listening in. 

Someone has just asked in the first question.

SV - construction was 4-6 weeks behind needed for Christmas. Ride is finished except for some defects which are being resolved before the ride can be registered. They hope this will happen “in the near future” 

 

capital light focus on entertainment offerings to bring local/pass holders into the park more

master plan underway with focus to increase profitability on a much smaller footprint - analysing what/how land can be utilised for commercial and residential development. 

$5m per annum reduction in expenses (read: less staff, less operating hours)

A $5m reduction in expenses means they either have a lot of fat in the operations or they are going to make the kind of cuts that lead to a further deterioration in the experience delivery.  I suspect the latter. Ouch. 

[aaronm]

5 hours ago, Mark Shaw said:

A $5m reduction in expenses means they either have a lot of fat in the operations or they are going to make the kind of cuts that lead to a further deterioration in the experience delivery.  I suspect the latter. Ouch. 

Hard to see how they can save $13-14k/day otherwise. Surprising that there’s that much to cut really.

[Brad2912]

It wouldn’t be as straightforward as cutting $14k a day on operations.

it would be a case of dropping a range of middle management/supervisor positions with may save $500k a year, permanently closing a couple of retail/food outlets saving $x in electricity, gas, consumables, and staffing. Closing WWW for 4/5 months you would imagine would have a large utility saving. 

[Naazon]

11 hours ago, Brad2912 said:

Closing WWW for 4/5 months you would imagine would have a large utility saving. 

Along with reduced maintenance staff since they have a longer time to complete the works.

[DaptoFunlandGuy]

2 hours ago, Naazon said:

Along with reduced maintenance staff

Given the past couple of years, and the info revealed at the inquest, I would suggest if they're reducing maintenance staff lower than that, it will be less than or equal to zero.

[aaronm]

13 hours ago, Brad2912 said:

Closing WWW for 4/5 months you would imagine would have a large utility saving. 

And hand another free kick to Village.

$129 for Dreamworld annual pass, waterpark open sometimes

$149 for Village locals pass, waterpark open every day except Christmas

If I was a local it's an absolute no brainer...

[DaptoFunlandGuy]

but it honestly isn't worth keeping a waterpark open for 4-5 months if you're only seeing locals through the gate - they pay nothing to get in, yet you have to have a full staff on site to cater to them, and because they're regular visitors, they aren't buying merch, and they probably aren't eating there.

the losses would be phenomenal. you might as well cut off your nose to spite your face.

It's worth more money to save on wage costs, maintenance costs and operating costs than it is to lose a few people who want to swim at a waterpark in winter.

[Archer]

With all major spending now cancelled including the lazy river extension to WWW and replacement for the Mineride, Ardent Leisure is reflecting exactly what most companies do before they put a unit of their business on the market for sale.

They all try to make the financial books look as best as possible. Limit spending and have no long term plans.

Unfortunately due to the large cost in the earthworks already done on the lazy river and low Christmas holiday guest numbers , the 3rd quarterly financials will look ugly as well.

If it is, or could be rezoned, then land and housing developers would start circling when ( and not if ) Ardent Leisure sell.