Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Ardent Leisure Group’s (ASX:ALG) Woes Continue

Today, Ardent Leisure Group (ASX:ALG) released its first half-year results with the group posting a net loss of $21.8 million.

Today, Ardent Leisure Group (ASX: ALG) released its first half-year results for the period ending 25 December 2018, with the group posting a net loss of $21.8 million.

Ardent Leisure Group is an operator of leisure and entertainment assets across Australia, New Zealand and the United States. It operates the theme park Dreamworld on the Gold Coast where four people tragically died on one of its rides in 2016.

Key Results

Ardent Leisure Group reported:

  • Revenue down $38.8 million or 14.6% to $226.7 million
  • EBITDA up 112.5% to $0.2 million
  • Net loss after tax down 39.7% to $21.8 million.

Part of the $38.8 million revenue decline was due to lost contributions from the sale of the Marinas and Bowling Entertainment businesses which contributed $75.1 million in the prior period. This was partially offset by a $36.2 million or 19% increase in revenue from continuing operations, driven by Main Event which made up over 80% of the total revenue.

Dreamworld Nightmare Continues

Ardent reported the Dreamworld incident costs relating to the coronial inquest continued to impact its profitability. Dreamworld reported costs amounted to $5.3 million after insurance recoveries before tax, which isn’t enough to fully explain Ardent’s net loss — unless shaken consumer confidence is impacting sales too.

Group Operations

Ardent’s US-based leisure and entertainment business, Main Event, was the only operating segment to record a positive result, with EBITDA of $16 million on a margin of 11.5%. It’s Australian segment, Theme Parks, consisting of Dreamworld, WhiteWater World and SkyPoint, recorded a negative EBITDA of ($12.4) million with a negative margin of 36%.

Rask Perspective

While I am not intimately familiar with the details of the tragedy that occurred in 2016, a company that appears to have cut back its repairs and maintenance expenditure because it was over budget risking the lives of its customers says a lot about the company. At this time, it is not something I would add to my portfolio.

[ls_content_block id=”14945″ para=”paragraphs”]

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content