The Motley Fool

Village Roadshow share price trading higher on 1H19 results

The Village Roadshow Limited (ASX: VRL) share price has jumped 2.17% on the ASX today after a solid half-year result in which the company reported a net profit after tax (NPAT) of $2.4 million.

What happened in first-half earnings?

The company cited a turnaround in its Theme Parks segment as a key driver of the result, with Gold Coast Theme Parks 1H19 ticket sales dollars up 27% on 1H18. This comes as theme parks around Australia continue to stabilise after initial declines in the wake of the October 2016 Dreamworld tragedy.

Group EBITDA rose 31% on prior corresponding period (pcp) to $65.0 million in the half, while NPAT excluding material items rose to $12.8 million (from $0 in 1H18).

The result was also buoyed by strength in the Cinema Exhibition Industry while the company’s cost reduction program implemented in FY19 remains on track to deliver annualised savings of $10 million.

Leveraged for the troubled group reduced to 2.04x (from 2.83x in 1H18) while net debt was reduced from $338.5 million to $216.4 million in the half.

Pleasingly for investors, the Board plans to reinstate dividends at the full year result in August 2019 if performance continues to meet expectations.

The company endured a challenging 2018 as it’s share price plunged 45% throughout the year to $2.805 per share as at 31 December 2018. While it has since recovered slightly to $3.26 per share, there’s plenty of work still to do to keep debt under control and return to long-term profitability.

Foolish takeaway

I personally am not bullish on the leisure industry and particularly given this morning’s result from Ardent Leisure Group Ltd (ASX: ALG) which saw them post a $21.7 million loss.

For those who are similarly bullish on leisure, I’d suggest checking out these top growth shares that have been tipped as market beaters.

NEW! Top 3 Dividend Bets for 2019

With interest rates likely to stay at rock bottom for months (or YEARS) to come, income-minded investors have nowhere to turn... except dividend shares. That’s why The Motley Fool’s top analysts have just prepared a brand-new report, laying out their top 3 dividend bets for 2019.

Hint: These are 3 shares you’ve probably never come across before.

They’re not the banks. Not Woolies or Wesfarmers or any of the “usual suspects.”

We think these 3 shares offer solid growth prospects over the next 12 months. The first two currently offer fat, fully franked yields. The last is a surprising REIT offering you the benefits of being a landlord with none of the hassle! You’ll discover all three names and codes in "The Motley Fool’s Top 3 Dividend Shares for 2019."

Even better, your copy is free when you click the link below. Fair warning: This report is brand new and may not be available forever. Click the link below to be among the first investors to get access to this timely, important new research!

The names of these top 3 dividend bets are all included. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies move – we may be forced to remove this report.

Click here to claim your free copy right now!

Motley Fool contributor Lachlan Hall has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

Another is a diversified conglomerate trading near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

CLICK HERE FOR YOUR FREE REPORT!