Coast Entertainment Holdings (CEH) H2 2024 earnings summary

Executive summary

• Achieved first positive consolidated EBITDA (excluding Specific Items) for continuing operations since FY16, 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 FY16.

• Revenue rose 3.8% to $87.0 million, driven by new attractions and increased promotional activity.

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

• Both Dreamworld and SkyPoint delivered positive EBITDA, with SkyPoint achieving record results.

Financial highlights

• Theme Parks & Attractions EBITDA (excluding Specific Items) was $7.4 million, up 56.4% year-over-year, highest since FY16.

• Group consolidated EBITDA from continuing operations (excluding one-offs) was $1.1 million, up 132% from a $3.4 million loss in FY23.

• Net profit after tax was $2.6 million, down from $664.7 million in FY23, which included a large one-off gain.

• Corporate costs (excluding Specific Items) reduced by 22.6% to $6.3 million due to restructuring and cost savings.

• Cash on hand at year-end was $89.2 million, with no debt.

Outlook and guidance

• Early FY25 shows strong growth in visitation, revenue, and EBITDA, with July 2024 revenue up 10.4% and EBITDA up 42.9% year-over-year.

• New major attraction, Rivertown, expected to further boost attendance and earnings, with opening on track for December 2024.

• Ongoing focus on cost discipline, efficiency, and execution of product master plan, with further savings anticipated.

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

• Share buyback expected to complete in Q1 FY25.