Coast Entertainment Holdings Ltd · ASX:CEH
Coast Entertainment — FY2024 Earnings Presentation
37 slides from Coast Entertainment's earnings presentation, Aug 23, 2024
Slide 1: FY24 Results Presentation
COAST ENTERTAINMENT HOLDINGS LIMITED FY24 RESULTS PRESENTATION 23 August 2024
Slide 2: Group Overview
FY24 GROUP OVERVIEW 2
Slide 3: Key Messages
Positive consolidated EBITDA excluding Specific Items KEY MESSAGES ▪ First positive consolidated EBITDA excluding Specific Items1 for continuing operations since FY16, notwithstanding: ▪ Economic headwinds impacting consumer discretionary spending and creating inflationary cost pressures ▪ Two sever
Slide 4: Consolidated Results
Recovery momentum continuing CONSOLIDATED RESULTS A$m FY24 FY23 Variance ▪ Operating revenue of $87.0 million increased 3.8%, driven by increased Operating revenue 87.0 83.9 3.8% promotional activity and the launch of several new attractions Theme Parks & Attractions EBITDA1 excl 7.4 4.7 56.4% ▪ Ach
Slide 5: Specific Items Impacting Results
FY24 Specific Items mainly relates to discontinued operations, class action settlement and storm related items SPECIFIC ITEMS 1 IMPACTING RESULTS A$m FY24 FY23 Trading performance of the Group in the current and prior year has been 1 impacted by a number of unrealised and non-recurring Specific Item
Slide 6: Theme Parks & Attractions
FY24 THEME PARKS & ATTRACTIONS 6
Slide 7: FY24 Successes
Year in Review FY24 SUCCESSES SAFETY PROFITABILITY EFFICIENCY EVENTS COMMUNITY 3rd year of perfect 2nd consecutive increase Significant reductions in Record performance for Excellent partnerships aquatic safety audit in annual operating corporate costs and flat existing events and new with local sch
Slide 8: New Attractions – Ocean Parade Extension
Strategic priorities NEW ATTRACTIONS – Ocean Parade Extension 8
Slide 9: New Attractions – Kenny and Belinda's Dreamland
Strategic priorities NEW ATTRACTIONS – Kenny and Belinda’s Dreamland 9
Slide 10: New Attractions – The Dreamworld Flyer
Strategic priorities NEW ATTRACTIONS – The Dreamworld Flyer 10
Slide 11: FY24 Financial Results
Achieved growth in key metrics despite external challenges FY24 FINANCIAL RESULTS ▪ FY24 revenue of $87.0 million was up 3.8% on prior year despite A$m FY24 FY23 Variance challenging economic headwinds, adverse weather impacts and the Revenue 87.0 83.9 3.8% prior year benefitting from $2.6 million o
Slide 12: Financial Highlights
FY24 Results Overview Ticket Sales1 Ticket Sales Per Cap1 FINANCIAL HIGHLIGHTS ▪ FY24 total ticket sales1 were highest since FY16, up 40% on FY17, despite challenging trading conditions ▪ Ticket sales growth in FY24 driven by increased promotional activity and the launch of new attractions FY17 FY24
Slide 13: Solid 2H24 Performance
Resilient performance despite the impact of severe summer storms and persistent inclement weather in 2H24 SOLID 2H24 PERFORMANCE ▪ Severe summer storms caused significant damage and trading disruption for the parks during the peak summer trading period ▪ Significant cancellations of travel and accom
Slide 14: Steady Performance Amid Tough Trading Conditions
FY24 earnings highest since FY16 STEADY PERFORMANCE AMID TOUGH TRADING CONDITIONS COVID impacted Storm COVID impacted Storm COVID COVID impacts impacts 12.0 impacted 100.0 10.0 impacted 2.5 90.0 10.0 2.0 5.0 80.0 1.5 - 70.0 8.0 1.0 $'m $'m 60.0 (5.0) 0.5 $'m 6.0 $'m 50.0 - (10.0) 40.0 4.0 (0.5) 30.0
Slide 15: Progress on Strategic Priorities
Strategic priorities PROGRESS ON STRATEGIC PRIORITIES ▪ Critical risk program well established ▪ Costs contained within CPI despite increased ▪ Ellis & Associates Platinum award achieved activity for aquatic safety ▪ Additional efficiency opportunities becoming ▪ Implementation of 3rd party auditing
Slide 16: Delivering a Differentiated Guest Experience
Strategic priorities DELIVERING A DIFFERENTIATED GUEST EXPERIENCE ▪ New attractions and ongoing focus on guest experience are resonating well with guests ▪ Strong guest satisfaction metrics despite significant construction activity at Dreamworld in 1H24 ▪ Our properties continue to rank as the Gold
Slide 17: Events & Activations
Strategic priorities EVENTS & ACTIVATIONS 17
Slide 18: Events & Activations
Strategic priorities EVENTS & ACTIVATIONS 18
Slide 19: Events & Activations
Strategic priorities EVENTS & ACTIVATIONS 19
Slide 20: Rivertown… A Whole New Dreamworld Experience
Strategic priorities RIVERTOWN… A WHOLE NEW DREAMWORLD EXPERIENCE ▪ Construction of ‘Rivertown’ well progressed despite difficult construction environment and weather delays, with opening date anticipated at the end of calendar 2024 (subject to external factors) ▪ The new world will offer the most i
Slide 21: Rivertown… A Whole New Dreamworld Experience
Strategic priorities RIVERTOWN… A WHOLE NEW DREAMWORLD EXPERIENCE 21
Slide 22: Rivertown… A Whole New Dreamworld Experience
Strategic priorities RIVERTOWN… A WHOLE NEW DREAMWORLD EXPERIENCE 22
Slide 23: Rivertown… A Whole New Dreamworld Experience
Strategic priorities RIVERTOWN… A WHOLE NEW DREAMWORLD EXPERIENCE 23
Slide 24: Other Updates
OTHER UPDATES SkyPoint ▪ Revenue and EBITDA, best on record despite international visitation still below historical levels ▪ SkyPoint’s new brand and modernisation launched, offering a renovation, coupled with a more modern look and feel designed to appeal to a broader audience, including domestic a
Slide 25: A Well-Defined Strategy for Long Term Growth
A WELL-DEFINED STRATEGY FOR LONG TERM GROWTH SAFETY REMAINS TOP HIGHEST EBITDA PRIORITY SINCE FY16 REVENUE PIPELINE WELL ESTABLISHED ONGOING COST DISCIPLINE ECONOMIC OUTLOOK CULTURE OF HIGH ▪ High interest rates will continue to impact consumer spending PERFORMANCE ▪ Inflationary environment will co
Slide 26: Corporate Costs & Capital Management
FY24 CORPORATE COSTS & CAPITAL MANAGEMENT 26
Slide 27: Corporate Costs
CORPORATE COSTS ▪ Corporate costs of $6.3 million (excluding Specific Items) declined $1.8 million compared to the prior year despite ongoing cost pressures ▪ Savings driven by head office restructuring, insurance cost savings and a reduction in Directors’ fees, resulting in the lowest level of Corp
Slide 28: Cash Flows
CASH FLOWS A$m FY24 FY23 Opening net cash/(debt) balances 141.4 (152.7) ▪ At 25 June 2024, the Group had $89.2 million of cash on hand Operating pre-tax cash flows (3.5) (6.7) ▪ Operating cash flows improved by $3.2 million vs prior year, driven Net interest income 6.1 3.4 by improved trading perfor
Slide 29: Capital Management
CAPITAL MANAGEMENT Share buyback Deployment of capital ▪ Capital development pipeline is progressing well, with the Rivertown precinct and Jungle Rush coaster on schedule for December 2024 93.9% opening. Approximately $24 million of this development remains to be funded in FY25 ▪ This precinct to be
Slide 30: Appendices
APPENDICES 30
Slide 31: Segmented Results – FY24
APPENDIX 1 Segmented Results – FY24 Discontinued Theme Parks & Continuing Operations A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 87.0 - 87.0 - 87.0 Operating EBITDA 2.3 (6.9) (4.6) - (4.6) Gain on disposal of Main Event business - - - 12.6 12.6 Segment EBITDA 2.3 (6.
Slide 32: Segmented Results – FY23
APPENDIX 1 Segmented Results – FY23 Discontinued Theme Parks & Continuing Operations A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 83.9 - 83.9 - 83.9 Operating EBITDA 3.1 (7.9) (4.8) - (4.8) Gain on disposal of Main Event business - - - 682.4 682.4 Segment EBITDA 3.1 (
Slide 33: Specific Items by business unit – FY24
APPENDIX 2 Specific Items by business unit – FY24 Discontinued Theme Parks & Continuing Operations Attractions Corporate Operations Main Event Consolidated Segment EBITDA has been impacted by the following Specific Items: Shareholder class action costs, net of insurance recoveries (3.5) - (3.5) - (3
Slide 34: Specific Items by business unit – FY23
APPENDIX 2 Specific Items by business unit – FY23 Discontinued Theme Parks & Continuing Operations Attractions Corporate Operations Main Event Consolidated Segment EBITDA has been impacted by the following Specific Items: Gain on disposal of Main Event business - - - 682.4 682.4 Unrealised derivativ
Slide 35: Defined Terms
DEFINED TERMS 35
Slide 36: Defined Terms
DEFINED TERMS Defined Terms Description Continuing operations Theme Parks & Attractions business and Coast Entertainment Corporate Head Office DTA Deferred tax asset EBITDA Earnings before Interest, Tax, Depreciation and Amortisation EBIT Earnings before Interest and Tax F&B Food and beverage LTI Lo
Slide 37: Disclaimer
DISCLAIMER This information has been prepared for general information purposes only, is not general financial product advice and has been prepared by Coast Entertainment Holdings Limited (ABN 51 628 881 603) (CEH), without taking into account any potential investors’ personal objectives, financial s
Coast Entertainment Holdings — FY2024 Earnings Presentation on 6ix