Dreamworld theme park's slow recovery weighs on Ardent Leisure

The 2016 tragedy at the Dreamworld theme park on the Gold Coast continues to impact entertainment group Ardent Leisure, which has flagged a wider loss this financial year.

Ardent on Monday said it expected a 2018 financial year net loss of between $84 million and $94 million, compared with a $63 million loss the prior year. The result would include a $75 million revaluation on the Dreamworld property and $6 million of costs relating to the Dreamworld accident that killed four people. It would also include a $38 million impairment relating to five underperforming locations in its US entertainment business.

Ardent's full-year audited results will be released on August 22. Its share price was down 4 per cent to $1.92 in early trade.

Ardent chairman Gary Weiss said the revaluation adjustment for Dreamworld reflected slower recovery in attendance at the theme park than projected previously. The theme parks are expected to deliver a $91-$95 million EBITDA loss, compared with a $98 million loss the previous year.

Ardent said its Main Event bowling-based entertainment division would have EBITDA of $12-$15 million, down from $46 million a year ago.

Ardent's net debt as of June 26 was about $11 million, reflecting the use of proceeds from the sale of the disposed businesses to pay down the current syndicated facility. The group said it intended to replace the current debt facilities with new facilities better suited to support the growth and capital requirements of the Main Event and Theme Park businesses.