Join our daily newsletter At The Bell to receive exclusive market insights
- Theme park and attractions owner, Ardent Leisure (ALG) will be withdrawing its financial year 2020 guidance earnings for Main Event
- Main Event is the fastest growing bowling entertainment business in America and has over 43 centres around the country
- The growing concern of coronavirus covid-19 has resulted in the reduction of attendance and revenue at centres across America
- Main Event’s earnings before interest, taxes, depreciation, and amortisation margin is expected to be below the 20 per cent guidance previously issues.
- On market close, Ardent is down 6.41 per cent, selling shares for 36.5¢ apiece
Theme park and attractions owner, Ardent Leisure (ALG) will be withdrawing its financial year 2020 guidance earnings for Main Event.
Main Event is the fastest growing bowling entertainment business in America and has over 43 centres around the country. The entertainment place not only has bowling but laser tag, high ropes, billiards, video games and dining options.
The growing concern of coronavirus covid-19 has resulted in the reduction of attendance and revenue at centres across America. As a result, Main Event no longer believes it will achieve the constant centre revenue growth of between 1.5 per cent – 2.5 per cent as previously stated.
Due to this, Main Event’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) margin is expected to be below the 20 per cent guidance previously issued.
Ardent owns some Australia’s biggest theme parks and attractions such as Dreamworld, WhiteWater World and SkyPoint.
The company says the impact of the outbreak is expected to continue for longer than initially anticipated.
“Both Main Event and Theme Parks are pursuing a range of mitigating actions in response to the downturn in guest attendance,” the company said.
“These include adjusting operating costs, deferring non-essential capital investment, and reviewing other non-critical business activities and discretionary expenses,” it added.
Ardent’s Theme Parks division will continue to focus on marketing efforts in the domestic market for the short to medium term.
“The health and safety of our team members and guests remains our key priority and our businesses have undertaken a range of measures to enhance the cleaning and sanitisation of Main Event centres and the Theme Parks operations,” Ardent told the market.
On market close, Ardent is down 6.41 per cent, selling shares for 36.5¢ apiece.
