News State Queensland Dreamworld theme park worth $164 million less after ride deaths

Dreamworld theme park worth $164 million less after ride deaths

dreamworld ardent leisure
The inquest into the Dreamworld deaths is continuing. Photo: Getty
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Dreamworld has lost $164 million of its property value since four people were killed at the Gold Coast theme park in 2016.

The park lost about $75 million in a property revaluation in the 2017-18 financial year, according to unaudited figures provided by owner Ardent Leisure to ASX on Monday.

“The revaluation adjustment for Dreamworld reflects slower recovery in attendance at the theme park than projected previously,” the release said.

Dreamworld lost $89 million in revaluation the year prior, for a combined property value loss of $164 million.

It also about haemorrhaged $6 million in incident costs in 2017-18, after insurance recoveries.

Audited figures will be released on August 22.

Four people were killed in the Thunder River Rapids ride tragedy.

A coronial inquest is investigating the deaths of Cindy Low, Kate Goodchild, her brother Luke Dorsett and his partner Roozi Araghi on October 25, 2016.

They were travelling on a raft on the 30-year-old ride when it collided with another raft and partially flipped.

The inquest is expected to resume in October.

Revenue at Ardent’s Theme Parks division plummeted by $37.1 million in the 2016-17 financial year, a decline of 34 per cent.

Revenue was $107.6 million in the year before the accident, and dropped to $70.9 million.

The unaudited figures on Monday projected revenue to slide slightly to between $67 million and $70 million.

“Revenue from the Australian Theme Parks division was impacted by continued slow recovery post the Thunder River Rapids ride tragedy which occurred in October 2016, discount ticket pricing and some adverse weather conditions,” the release said.

The division is forecast to book a loss of between $91 million to $95 million for the year, compared with a loss of $98 million a year earlier.

Ardent shares were down eight cents to $1.93 at 11.31am on Monday.

The trading update comes a month after Dreamworld chief executive Craig Davidson resigned.

Ardent CEO Nicole Noye took over as acting CEO of theme parks until Mr Davidson’s replacement has been found.

Ms Noye will be supported by two new executive appointments of Phil Tanner as director of safety, and former Queensland Police Inspector Mike McKay as director for culture, community and external relations.

How did Dreamworld fare last year?

Last year Dreamworld lost $89 million in a property revaluation, as well as $5 million in incident costs after insurance recoveries.

The 2016-17 audited report said the fatal incident was the main factor behind Ardent losses, due to its closure for 45 days after the incident and significantly reduced visitation after re-opening.

“Dreamworld has faced very challenging trading since re-opening but is firmly on the path to recovery, however this will take some time,” last year’s report said.

Ardent predicted the recovery would take two years.

Cumulative season pass sales were down 10 to 15 per cent last year, compared to the 2015-16 financial year.

Ticket sales were on a positive trend, Ardent said at the time.

The New Daily contacted Dreamworld and Ardent Leisure.

-with AAP