Ardent Leisure’s annual profit has climbed by more than a third, driven by solid earnings from its chain of US family entertainment centres.
Laser tag, tenpin bowling and indoor rock climbing venues in the United States have helped boost Ardent Leisure’s profit by more than a third.
The theme park and Goodlife gym owner’s full year profit has jumped 37.6 per cent to $49 million in the year to June 30, driven by growth in its US family entertainment business Main Event.
Main Event, venues that offer karaoke, rock climbing, ten pin bowling and laser tag activities, accounted for 21 per cent of Ardent’s earnings.
“This is expected to grow materially in the current financial year as the number of centres expands across the US from 14 to 20,” chairman Neil Balnaves said on Monday.
Chief executive Greg Shaw says Main Event centres have enjoyed stronger growth than its Australian businesses, which include Goodlife health clubs and Gold Coast theme parks Dreamworld and Whitewater World.
“Main Event has been the standout. We are seeing really significant growth in the existing centres as well as the new centres we’ve opened throughout the year,” he told AAP.
“It reinforces the fact it’s a unique business model. It has broad appeal across many ages and demographics and we are starting to see impacts from an improving US economy.”
Main Event’s revenues rose more than a fifth to $US89.3 million ($A96.62 million) in 2013/14.
Earnings rose by more than a quarter to $US22.4 million ($A24.24 million).
The rollout of new Main Event centres in the US will be accelerated with six new centres to open in 2014/15, an extra seven the following financial year and eight in 2017/18.
There are no plans to open centres in Australia.
Goodlife health clubs’ revenues lifted by 16.6 per cent to $164.1 million, while underlying earnings rose 12.1 per cent to $34 million.
Acquisitions of two clubs in Melbourne aided the result.
Revenues at Ardent’s theme park division rose 1.3 per cent to $100.1 million.
Attendances were up 8.9 per cent due to popularity of local unlimited passes and a Queensland government theme park marketing campaign.
But Ardent said revenues for July fell slightly to $9 million.
It said it was focused on providing park visitors with new rides in September and facility upgrades at Dreamworld.
Revenues at Ardent’s bowling centres fell to $113.9 million, from $115.2 million.
The Marina division’s revenues of $23.5 million was marginally ahead of 2012/13.
Its shares were eight cents higher at $2.88 at 1400 AEST.
Ardent’s profit rises on popular US entertainment centres
* Net profit of $49m, up 37.6 pct from $35.6m in 2012/13
* Revenue of $499.7m, up 11.3 pct from $448.9m
* Final dividend of 13 cents per share, up from 12 cents.