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.

The Disruptors: 3 Revolutionary Aussie Companies to Back for 2018

We’re living in one of the most exciting times in investing history. Innovation and a booming culture of entrepreneurship are constantly creating new companies with the potential to make forward-thinking investors very rich. Now more than ever, one small, smart investment could make a huge difference to your wealth.

That’s why at The Motley Fool we’ve been scrutinizing the ASX to uncover the kinds of companies that we believe could turn into the next Cochlear or REA Group.

We’ve found three exciting companies that we believe re poised to perform in the new year. Click here to uncover these ideas!

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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.