Ardent Leisure Group Ltd (ASX: ALG) released its FY19 results to market this morning. Here’s a quick guide to the results before the market opens.

About Ardent Leisure

Ardent Leisure owns and operates a number of premium leisure assets on the Gold Coast including the Dreamworld and White Water World theme parks and Sky Point Tower which offers incredible views over the Gold Coast and surrounds from the observation deck. It also owns Main Event, a growing portfolio of family entertainment assets in the United States.

The Numbers

Ardent Leisure reported a decline in revenue of 11.7% to $483.3 million, however, revenue from continuing operations was up 14.4%. EBITDA grew 15.7% from continuing businesses. The video below explains what EBITDA is.

Revenue from the Main Event business grew 7.9%, reflecting performance from new centres opened in FY18 and FY19.

Theme Parks revenue growth was flat, with attendance affected by the Coronial Inquest hearings into the deaths of four people on a Dreamworld ride in 2016 and the opening of the new Sky Voyager ride taking longer than expected. The Coroner’s report is expected towards the end of 2019.

Net debt at 25th June 2019 was $87.3 million compared to $11.3 million at 26th June 2018.

Ardent reported a net loss of $60.9 million, an improvement from a loss of $90.7 million in FY18.


Ardent Leisure will not pay a final dividend for FY19, as the Board’s intention is to continue investing in Theme Parks and Main Event to drive recovery and growth.

FY20 Outlook

For Main Event, Ardent Leisure expects a constant centre revenue increase of 1-2% in FY20, but four new centres will also be opened. From FY21, the company expects to open 5-8 new centres per year.

Ardent is targeting 20% EBITDA margins for Main Event. For Theme Parks, Ardent will invest approximately $50 million in new rides and attractions over the next 3-5 years. The company says there is a plan to implement a turnaround but admits it will take time and investment.


Ardent reported that Dreamworld is expected to return to profitability in FY20, but it will take 3-5 years to reach historical earnings levels. While I do believe Ardent Leisure can turn its business around, it seems clear that time is needed, and I’m not convinced now is the right time to invest.

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Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.