Shares in Ardent Leisure (AAD) bounced higher yesterday in something of a relief rally, despite shareholders being told the financial impact of the Dreamworld tragedy would be “significant” and confusion about the theme park’s re-opening.
Ardent Leisure’s CEO yesterday warned the company’s revenues will take a “significant" hit after this week’s fatal accident at the Gold Coast theme park, and asked for patience while authorities investigate.
In an address at the company’s annual general meeting in Sydney on Thursday, Deborah Thomas expressed "our deepest and most heartfelt condolences" on behalf of the company to the families and friends of the four people who died on the Thunder River Rapids ride.
It was an emotional meeting, with some shareholders querying why it was held – but the company explained that once convened, it had to be held – although it could have been adjourned to a new date as a mark of respect for the four people who died.
Ms Thomas told a news conference after the AGM that it was too early to say exactly how the deaths would impact the company’s earnings, other than it would be “significant… due to the high level of fixed costs required to operate the business."
"It is not possible for me to provide any further guidance at this time, however we will provide regular updates to the market," she said.
And outgoing chairman Neil Balnaves said said the financial impact would not be long-term.
"It will have a material effect on Dreamworld’s result in the second half, there’s no doubt about that. And there will be a continuing effect, I would expect, through the next financial year, but it will diminish as time goes by."
In his speech, outgoing chairman Neil Balnaves said it was unfortunate the AGM could not be delayed in the wake of this week’s tragedy – but it was “a statutory meeting, and in accordance with the constitution of the company we are required to convene the meeting as planned”.
Dreamworld was to reopen today to hold a memorial for the people who died on Tuesday. The theme park will not reopen until at least next week, with an update expected on Monday.
