Village Roadshow has gone into a trading halt

Wet’n’Wild. Brett Hemmings/Getty Images

Entertainment group Village Roadshow has gone into a trading halt.

The company says it’s preparing information about a potential capital raising.

Earlier this month, Village announced the sale of its Wet‘n’Wild Water Park in Western Sydney to Parques Reunidos, one of the world’s leading leisure park operators based in Spain, for $40 million.

Village will use the proceeds from the sale pay down debt.

Both key divisions, Theme Parks and Cinema Exhibition, are being hit by “challenging trading conditions,” says the company.

The company says the continuing adverse impact from the Dreamworld tragedy, which left four dead on the Gold Coast, has shaken the confidence of parents in taking children on rides.

In the latest half year results revenue was down 5% to $515,163 million.

Village shares last traded at $2.18, well down on the 12 month high of $4.21.

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.