Ardent Leisure is about to post a major loss


Ardent Leisure, the owner of the fatal Dreamworld ride on the Gold Coast, is heading for a full after tax year loss of between $84 million and $94 million.

The company, in reporting preliminary, unaudited results, says it will have a non-cash impairment charge of $38 million, plus $12 million of other costs.

In early trade, Ardent shares were down 4.1% to $1.92.

Revenue from the Theme Parks division has been impacted by slow recovery from the Thunder River Rapids ride tragedy which left four people dead in October 2016.

The full year earnings will also be impacted by a $75 million cut in the value of Dreamworld and $6 million in incident costs.

Overall revenue will be between $545 million $550 million.

Craig Davidson, the CEO of Dreamworld CEO, last month announced he was leaving, 20 months after the fatal Thunder River Rapids Ride accident.

Ardent in February posted a net loss of $15.64 million for the half year, after a $22.8 million impairment charge relating to Dreamworld.

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