Dreamworld owner suffers storms financial hit
The damaging storms that forced the closure of Dreamworld and WhiteWater World on the Gold Coast over Christmas and New Year has left a financial hole for the owner of the theme parks.
Coast Entertainment, formerly known as Ardent Leisure, has also told investors that the closures have hurt its performance as the group faces a barrage of other headwinds from high inflation, interest rates and more Australians opting for international holiday at the expense of the Gold Coast.
In a trading update on Tuesday, Coast Entertainment said the two damaging storms over its peak trading period had resulted in the two theme parks closing for up to five days, and seen significant cancellations of travel and accommodation bookings into the Gold Coast.
“The adverse impact on the trading performance of the business has been felt beyond the days of closure, with most of this falling into the second half of fiscal year 2024,” the company said in a statement.
“Management is currently working with its insurers to assess the total financial impact and progress associated insurance claim.”
Queensland Premier Steven Miles on Monday launched a $2.5m program offering 50,000 $50 vouchers to support tourist operators in the wake of severe weather.
Coast Entertainment reported that the December half had seen more challenged economic conditions, with further interest rate rises and continuing high inflation weighing on consumer discretionary spending.
In the prior period, the group said the Gold Coast had benefited from pent-up demand, but was now experiencing a moderation in interstate travel due to cost-of-living pressures and a preference for international holidays.
The theme parks and attractions business anticipated a positive underlying earnings result, but lower than the prior period, due to cost pressures driven by the high inflationary environment, particularly in labour and utilities.
Attendance growth was up 6.5 per cent on the prior period from increased promotional activity throughout the period and the opening of new attractions in the new Kenny and Belinda’s Dreamland kid’s world.