In its announcement to the ASX on Tuesday, Ardent Leisure Group (ASX:AAD) reported strong earnings for the nine months up to 31 March 2015. Group revenue was up 17.2 per cent at A$444.9m. Total divisional earnings before interest, tax, depreciation and amortisation (EBITDA) came in at A$101.6m, an increase of 10.9 per cent compared to the previous corresponding period. The company cited “outstanding performance from Main Event, both for new and constant centres” as the main contributor to the positive data. Its Main Event division recorded US$103.91m (A$131.95m) in total revenues, up 58.3 per cent compared to the previous corresponding period. EBITDA rose 63.7 per cent to US$27.05m (A$34.37m) for the division compared to the previous corresponding period.
Its US-based Main Event was cited as the best performing division of the company. Ardent opened its 20th centre in April and is projecting an additional seven centres in the US by 2016 and eight more in 2017. While its US business prospered, Ardent’s Goodlife Health Clubs suffered a fall in both revenue and earnings, falling 4.9 and 6.4 per cent respectively. The company said its acquisition of the Fitness First health clubs did not achieve the projected increases in membership or profit. The company’s theme parks, such as Dreamworld on Queensland’s Gold Coast, reported mostly flat revenues and earnings. Shares of AAD are up 22.5c, or 11.34 per cent, to $2.21 per share on Tuesday. AAD has fallen 12.99 per cent in the last 12 months and 24.32 per cent so far this year.
Author: Imran Valibhoy
May 05, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.