Dreamworld operator flags second-half hit due to storms

The news: Dreamworld operator Coast Entertainment has reported strong attendance growth in the first-half of the fiscal year, but flagged a likely hit for the second-half due to the recent wild weather in south-east Queensland.

The numbers: Coast shares were down 2.4% to 41 cents in early trading on the ASX despite the company saying its theme parks business recorded 6.5% attendance growth in the six months to December. Ticket sales were up 11.8% over the prior period, although revenue is expected to be flat due to a change in sales mix.

The context: The company, formerly known as Ardent Leisure, said storms which hit the Gold Coast between Christmas and New Year’s Day resulted in significant damage, prolonged power outages and the temporary closure of both Dreamworld and WhiteWater World. It said there would be adverse impact on the trading performance of the business beyond the days of closure, with most of this falling into the second half of FY24, because both weather events occurred during peak trading periods and had resulted in significant cancellations of travel and accommodation bookings into the Gold Coast. The company told investors it is still assessing the impact.