In an update to investors this morning, Ardent Leisure Group (ASX: AAD) revealed just how much its traffic numbers have been impacted by the tragedy that occurred at its Dreamworld theme park in October 2016.
On 26 October, four individuals were killed in a tragic incident involving a ride at the Dreamworld theme park on the Gold Coast. The park was closed for over one month as investigations were carried out to determine the cause of the incident, with attendance low when the park reopened early in December.
Today, Ardent Leisure Group, which also owns WhiteWater World as well as various other businesses such as AMF Bowling and Main Event Entertainment, provided a January trading update for the Theme Parks division. During the month, the division recorded unaudited revenue of just $6.97 million. The result was 50.4% below the $14.05 million recorded in the prior corresponding period.
In saying that, attendance does appear to have improved compared to December, which appears to be behind the 2% rise in the company's share price today. In contrast, the Theme Parks division endured a 63% dip in revenue for the period spanning 10 December to 31 December compared to the prior corresponding period. Future months should also benefit from Australia's first LEGO Certified Store, which opened at Dreamworld on 28 January.
In its note, management said:
"Guest sentiment continues to be very positive and once again we thank our passholders, guests and the broader community for their strong support."
It also confirmed that regular trading updates for the Theme Parks division will continue to be released over the coming months in order to keep the market fully informed.
Pleasingly for investors in the sector, attendance also appears to be improving for the theme parks owned by Village Roadshow Ltd (ASX: VRL), including Wet'n'Wild, Movie World and Sea World. That said, it is still experiencing a sharp decline in the number of locals attending who have traditionally made up the majority of park visitors. In a note to investors on 23 January, it said:
"During the key trading period of December 2016, and January 2017, ticket sales have remained solid when compared with the prior corresponding period. International and interstate visitation remains in line with the prior year. However, attendance by the local Queensland market which previously represented approximately 60% of attendances, has declined by more than 12% on the prior year since the Dreamworld incident. Wet'n'Wild Sydney appears to have been similarly affected by the incident."
Although there are some positive signs, it is clear that both companies still have their work cut out for them in order to attract more visitors back to their parks. Investors will likely be provided with more details when the pair release their latest earnings results.
