Ardent value slumps on loss

INVESTORS wiped $200 million from the value of Dreamworld owner Ardent Leisure yesterday after it revealed heavy losses following last year’s Thunder River Rapids Ride tragedy.

Chief executive Deborah Thomas said that while visitor numbers were recovering, attendance was still down more than a third following the accident that killed four people in October.

Ardent reported a $49.4 million loss in the six months to the end of December compared to a $22.7 million profit in the previous period largely due to the tragedy.

Shares in the company plummeted 22 per cent yesterday after the loss was announced. Ms Thomas vowed Dreamworld would bounce back but said the tragedy had cost the company $95 million in property write-offs and other expenses.

The Thunder Rapids Ride will be dismantled following the tragedy.

“Our thoughts and prayers remain with the victims’ families in the aftermath of this tragedy,” Ms Thomas said yesterday.

“It is important for the families, our own people and the community that we respectfully take time to establish what happened and make sure it never happens again.”

Visitor numbers at the Coomera theme park plummeted during the crucial Christmas holiday period as fears about the safety of rides scared off tourists. Attendance was down 63 per cent in December, 44 per in January and 35.5 per cent so far this month.

Attendance at Dreamworld slipped 27 per cent in the last six months of 2016 to 906,000.

Ms Thomas said safety was paramount and a review of Dreamworld’s rides, including a 45-day shutdown of the park, had been central to rebuilding the trust of staff, guests and the community.

Since the tragedy, Dreamworld had improved its attractions including a refurbished Tiger Island, a laser and fire show and the opening of Australia’s largest Lego retail store.

“Our customers still love Dreamworld,” she said, adding there had been an improvement since the tragedy in customer satisfaction with the park’s food offerings, retail outlets and rides.

“There also has been a steady recovery in visitor numbers driven by the reopening of the big thrill rides and the Lego retail store delivering record weekend retail sales.”

Ms Thomas said Dreamworld will launch a television advertising campaign prior to the Easter school holidays called “Let Your Imagination Play” to help encourage people back to the park.