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Why the Village Roadshow Ltd share price is getting smashed today

Village Roadshow Ltd (ASX: VRL) shares were down 12% today at the time of writing after the company downgraded its FY 2018 earnings expectations due to challenging trading conditions experienced in their Theme Parks and Cinema Exhibition divisions.

The company expects FY 2018 net profit after tax to be in the range from a $10 million loss to break even.

It appears the Commonwealth Games on the Gold Coast have not significantly increased attendance at the company’s Warner Bros. Movie World or Sea World theme parks.  I presume that experience was the same at Dreamworld which is owned by Ardent Leisure Group (ASX: AAD) which had its shares down 2%. Event Hospitality and Entertainment Ltd (ASX: EVT) shares were also down 1.7%.

Personally, my pick in the broader ASX leisure and entertainment category would be high growth gaming company Aristocrat Leisure Limited (ASX: ALL). I’m also a big fan of these three disruptors.

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Motley Fool contributor Kevin Gandiya has no position in any of the stocks mentioned.

You can follow Kevin on Twitter @KevinGandiya.

The Motley Fool Australia owns shares of and has recommended Event Hospitality & Entertainment. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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