Ardent Flags $94m Loss as Dreamworld Tragedy Weighs on Results

Owners of the Dreamworld theme park, Ardent Leisure, are struggling to recover from the 2016 tragedy which killed four people, writing down the value of the park by $75 million.

The ASX-listed owner and operator of Dreamworld flagged losses of between $85 million and $94 million in the 2018 financial year according to a financial update posted to the ASX on Monday.

Nearly two years after the accident, the group forecast its earnings before interest, tax, depreciation and amortisation (pretax) loss of between $50 million and $55 million. Ardent says it expects a $550 million revenue for the 2018 financial year.

“Revenue from the Australian Theme Parks division was impacted by continued slow recovery post the Thunder River Rapids ride tragedy which occurred in October 2016, discounted ticket pricing, and some adverse weather conditions,” Ardent said.

Related: Sydney Wet‘n’Wild Welcomes Spanish Owners in $40m Deal

The forecast included the $75 million cut to Dreamworld’s values and a $6 million outlay to cover the costs of the accident and its aftermath.

Overall revenue is expected to be between $545 million and $550 million.

The company reported a full-year loss of $62.6 million for the 2016-17 financial year, down from a $43 million profit the year prior to the tragedy.

Ardent’s shares were down more than 4 per cent to $1.94 per cent on Monday. The company will report its full year results on 22 August.

Australia’s largest theme park operator Village Roadshow also took a major hit to its 2018 financial year results, with the company targeting $10 million of cost savings including a 25 per cent reduction in the remuneration of co-chief executives Robert Kirby and Graham Burke.