Ardent: Getting ready for the main event

Wilson Asset Management

Last Friday, Ardent Leisure Group (ASX: AAD) provided a trading update for its Dreamworld and Main Event businesses. Despite seeing attendance numbers increase steadily since re-opening on 10 December 2016, Dreamworld’s unaudited revenue fell 63.0% to $3.66 million, versus $9.89 million recorded in December 2015. As we discussed at our Shareholder Presentations, we are monitoring the visitation daily at Dreamworld and note that visitor numbers may begin to build over January with favourable weather conditions and the re-opening of the remaining four rides. In relation to the important Main Event division in the United States, Ardent confirmed that revenue was US$102.1 million for the six months to 31 December 2016, with average sales growth per centre down 2.9%. Pleasingly, Main Event’s newly constructed centres are performing above expectations and are exceeding management targets, and we expect this momentum to contribute to positive sales growth per centre over the next 12 months. Shares in Ardent closed up 0.9% for the week. We own Ardent as a research driven investment in WAM Capital, WAM Leaders and WAM Research.


About this contributor

Wilson Asset Management

Wilson Asset Management

, Fund Manager

Established in 1997 by Geoff Wilson, we are an independently owned investment manager based in Sydney. Today, Wilson Asset Management is comprised of eight investment professionals who offer a combined investment experience of almost 100 years.

Expertise

ASX:AAD ASX:WAM ASX:WAX ASX:WLE ASX:WAA

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Medium screen shot 2017 02 28 at 8.02.18 pm

Patrick Poke

That like-for-like data seems to be key, will be very interesting to see how it comes out next quarter.

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