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Ardent Leisure Expects Lift In FY 2017 Earnings Amid Disappointing Performance For Its Main Event Business

MILSONS POINT, Australia -- Theme park and family entertainment center operator Ardent Leisure Group expects to report full-year earnings ahead of its guidance, but admits it can do better in its preliminary operating report. Ardent owns Main Event Entertainment , a U.S.-based family entertainment and bowling chain that's headquartered in Dallas. Australian-based Ardent expects core earnings before interest, tax, depreciation and amortization of $76 million when it releases its annual financial results o...

August 24, 2017 | Nick Montano

MILSONS POINT, Australia -- Theme park and family entertainment center operator Ardent Leisure Group expects to report full-year earnings ahead of its guidance, but admits it can do better in its preliminary operating report. Ardent owns Main Event Entertainment, a U.S.-based family entertainment and bowling chain that's headquartered in Dallas.

Australian-based Ardent expects core earnings before interest, tax, depreciation and amortization of $76 million when it releases its annual financial results on Aug. 31, slightly ahead of its guidance range of $73 million to $75 million. Last year's 45-day Dreamworld theme park closure following a fatal accident in October is likely to drag revenue down from $688 million to $586 million, or 15%.

Ardent says the lift in earnings was driven by a better-than-expected finish to the year by its U.S.-based family entertainment center business.

While Main Event grew revenue 30% to $226.2 million on the heels of new U.S. center openings, its earnings grew only 5.6% and margins fell. There are about 40 Main Event FECs operating in 14 states. Revenue for Ardent's bowling and entertainment centers in Australia are down 2.2% at $127.7 million, impacted by the closure of Kingpin Crown for renovation.

Ardent reported that its theme parks operations experienced a 34% fall in revenue to $70.9 million, reflecting the Dreamworld closure and lower visitation levels after it reopened. The company says the recovery of Dreamworld is likely to take two years.

Ardent chief executive Simon Kelly says Main Event's results were disappointing, and Dreamworld had faced very challenging trading since reopening, but was on the path to recovery. "From my relatively early days in the business, it is clear that there are many opportunities for us to do better," Kelly said. "We are firmly focused on these opportunities which will deliver significant value upside for our security-holders. Main Event's results are disappointing and provide plenty of opportunities for improvement."

Click here to see Ardent Leisure's official announcement on its preliminary FY17 operating performance and strategic update.

In April, Ardent Leisure Group announced the appointment of Kelly, replacing Deborah Thomas as chief executive. Thomas commenced a new role as Ardent's managing director, chief customer officer and chief operating officer on July 1.