Coast Entertainment Holdings (CEH) H2 2024 earnings summary

Executive summary

• Achieved first positive group/consolidated EBITDA for continuing operations since FY 2016, despite high interest rates, inflation, and severe storms disrupting peak trading periods.

• Visitation to venues increased 14.3% year-over-year, with ticket sales up 3.1% and highest value since FY 2016.

• Revenue rose 3.8% to AUD 87 million, driven by new attractions and increased promotional activity.

• Deferred revenue from annual passes increased 12% to AUD 12.1 million.

• Maintained a solid balance sheet with AUD 89.2 million cash and no debt as of June 2024.

Financial highlights

• Theme parks EBITDA (excluding specific items) was AUD 7.4 million, up 56.4% year-over-year, highest since FY 2016.

• Group consolidated EBITDA from continuing operations (excluding one-offs) was AUD 1.1 million, up 132%.

• Net profit after tax was AUD 2.6 million, down from AUD 664.7 million in FY 2023, which included a large one-off gain.

• Net interest income increased 18.8% to AUD 5.3 million.

• Deferred revenue increased 12% to AUD 12.1 million as of June 2024.

Outlook and guidance

• Early FY 2025 shows strong growth in visitation, revenue, and EBITDA, with July revenue up over 10% and EBITDA up over 40% year-over-year.

• Share buyback expected to complete in Q1 FY 2025, with 45.1 million shares (9.4% of issued capital) repurchased at AUD 21.2 million.

• Ongoing focus on cost discipline, efficiency, and execution of product master plan, with further savings anticipated in insurance and audit fees in FY25.

• Management expects further insurance compensation for storm-related property damage and business interruption in FY25.

• Capital development pipeline progressing, with Rivertown precinct and Jungle Rush coaster on track for December 2024 opening.