Entertainment media company Village Roadshow Ltd (ASX: VRL) is in a trading halt pending a company announcement, off the back of news it will sell its western Sydney Wet’n’Wild water park for more than $40 million.
But according to The Australian, while Citi and Macquarie analysts believe the sale will “solve the company’s balance sheet issue” it won’t change the fact that cinema visits are declining.
According to the article, both Citi and Macquarie maintained a neutral rating on the stock but saw plenty of headwinds at play, including the flagged $95 million write down on the value of Village’s Gold Coast theme parks in the wake of a fatal accident at Dreamworld in 2016.
Elsewhere in the space shares in leisure and entertainment company Ardent Leisure Group (ASX: AAD) have stalled lately with a recent announcement of significant restructuring of its Dreamworld management team, with an inquiry into the 2016 accident continuing.
Event Hospitality and Entertainment Ltd (ASX: EVT) shares have slid into the red of late, while Aristocrat Leisure Limited (ASX: ALL) has continued its incline – closing off July 11 at $31.01 – up 45% up from its share price of $21.39 at this time last year.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. 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.