Coast Entertainment Holdings Ltd · ASX:CEH
Coast Entertainment — H1 2024 Earnings Presentation
31 slides from Coast Entertainment's earnings presentation, Feb 23, 2024
Slide 1: 1H24 Results Presentation
COAST ENTERTAINMENT HOLDINGS LIMITED 1H24 RESULTS PRESENTATION 23 February 2024
Slide 2: Group Overview
1H24 GROUP OVERVIEW 2
Slide 3: Key Messages
Steady performance despite external factors impacting trading KEY MESSAGES ▪ Consolidated EBITDA excluding Specific Items1 broadly in line with prior period, despite: ▪ Challenging economic climate weighing on consumer discretionary spending ▪ Southeast Queensland suffering two severe storms on Chri
Slide 4: Consolidated Results for Half Year Ended 26 December 2023
Key factors impacting 1H24 results CONSOLIDATED RESULTS FOR HALF YEAR ENDED 26 DECEMBER 2023 A$m 1H24 1H23 Variance Operating revenue 43.5 43.7 (0.4%) ▪ Operating revenue broadly in line with the prior period, impacted by Theme Parks & Attractions EBITDA1 excl change in sales mix toward annual passe
Slide 5: Specific Items Impacting Results
1H24 Specific Items mainly relates to class action settlement and deferred consideration from the Main Event sale SPECIFIC ITEMS 1 IMPACTING RESULTS Specific Items impacting current and prior period results which are useful in A$m 1H24 1H23 understanding the Group’s performance are set out in the ta
Slide 6: Theme Parks & Attractions
1H24 THEME PARKS & ATTRACTIONS 6
Slide 7: A storm that saw the most damage to Dreamworld in 30 years
Impact of storms A storm that saw the most damage to Dreamworld in 30 years ▪ Southeast Queensland suffered a devastating cyclonic storm on Christmas Day, followed by a second severe storm on New Year’s Day ▪ In the first storm, Dreamworld/WhiteWater World suffered significant damage to roofing, fen
Slide 8: Storm Damage
STORM DAMAGE
Slide 9: Storm damage and incessant rainfall throughout January
Weather impacts Storm damage and incessant rainfall throughout January ▪ Contrary to the long-range forecasts, January 2024 suffered 133% more rain impacted days than January 2023 and 128% more than the average for January over the last 30 years ▪ January 2024 had 246mm of rainfall, 328% more than J
Slide 10: 1H24 Financial Results
Solid attendance and ticket sales growth despite external headwinds 1H24 FINANCIAL RESULTS ▪ 1H24 attendance grew 6.5% notwithstanding: A$m 1H24 1H23 Variance ▪ Macroeconomic headwinds weighing on discretionary spending Revenue 43.5 43.7 (0.4%) ▪ The business cycling a strong 1H23 Operating expenses
Slide 11: Steady 1H24 amidst tough trading environment
Solid performance prior to the storm in December Steady 1H24 amidst tough trading environment Included $2.4m Included $0.2m revenue funded revenue funded by govt stimulus by govt stimulus 70.0 COVID impacted Economic COVID impacted Economic 60.0 headwinds & headwinds & 50.0 3.5 storm impacts storm i
Slide 12: 1H24 New Attractions
Strategic Initiatives 1H24 NEW ATTRACTIONS ▪ Ocean Parade was completed with the addition of the new splash zone, Seabed Splash, offering families a spot to cool off and enjoy a splash during their Dreamworld day. The attraction completed a reimagined area, where various thrill and family attraction
Slide 13: 1H24 New Attractions
Strategic Initiatives 1H24 NEW ATTRACTIONS ▪ All new ride investments to support our partnership with one of Australia’s leading brands, The Wiggles The Wiggles Big Red Planes The Wiggles Big Red Boat Coaster 13
Slide 14: 1H24 New Attractions
Strategic Initiatives 1H24 NEW ATTRACTIONS ▪ The beautiful Dreamworld Flyer and Seabed Splash attractions both opened during the half Dreamworld Flyer Seabed Splash 14
Slide 15: Rivertown… A Groundbreaking Dreamworld Experience
Strategic Initiatives RIVERTOWN… A GROUNDBREAKING DREAMWORLD EXPERIENCE ▪ Construction has commenced on ‘Rivertown’ which will offer the most immersive and heavily themed land in Dreamworld’s history including a new family coaster and a reimagined Vintage Cars attraction ▪ The ‘Jungle Rush’ family c
Slide 16: A Rebranded SkyPoint
Strategic Initiatives A REBRANDED SKYPOINT ▪ SkyPoint’s new brand and modernisation have now launched, offering a renovation, coupled with a more modern look and feel designed to appeal to a broader audience including domestic and international clientele, as well as business events clients 16
Slide 17: Differentiating Our Guest Experience
Strategic Initiatives DIFFERENTIATING OUR GUEST EXPERIENCE Being Brilliant at Basics is key to the Dreamworld Difference ▪ According to the Global Review Index (GRI)1, our properties continue to rank as the Gold Coast's best rated holiday experiences “Came back to Dreamworld after 13 years! Riding t
Slide 18: Progress on Strategic Initiatives
PROGRESS ON STRATEGIC INITIATIVES ▪ Safety case license granted ▪ Ongoing investment in fleet modernisation and enhancement Safety ▪ Representation of senior management as thought leaders in local and international safety forums ▪ Management involved with Standards Australia and international harmon
Slide 19: Other Updates
OTHER UPDATES SOLID BALANCE SHEET Upcoming events in 2H24 ▪ Easter Holidays Food Festival and Winterfest at Dreamworld Insurance claim progress ▪ Management is still working with the insurers to estimate the impact of business interruptions and property damages due to the two storms on Christmas Day
Slide 20: Capital Management & Corporate Costs
1H24 CAPITAL MANAGEMENT & CORPORATE COSTS 20
Slide 21: Cash Flows
CASH FLOWS A$m 1H24 ▪ At 26 December 2023, the Group had $106.4 million of cash on hand Cash balances at 27 June 2023 141.4 ▪ Operating cash flows improved by $4.7 million on prior period, driven Operating cash flows (3.1) mainly by higher annual pass sales, for which cash is received up front1 Net
Slide 22: Capital Management
CAPITAL MANAGEMENT ▪ At 26 December 2023, the Group had cash balances of $106.4 million. Subsequent to this date, the Group has received US$8.1 million (A$11.9 million) deferred consideration relating to the Main Event sale1, and paid $4.0 million to settle the shareholder class action ▪ The announc
Slide 23: Corporate Costs
CORPORATE COSTS ▪ Corporate costs of $3.0 million (excluding Specific Items) declined $1.0 million compared to the prior period despite ongoing cost pressures ▪ Savings driven by head office restructuring, insurance cost savings and a reduction in Directors’ fees ▪ Management continues to focus stro
Slide 24: Appendices
APPENDICES 24
Slide 25: Segmented Results – 1H24
APPENDIX 1 Segmented Results – 1H24 Discontinued Theme Parks & Continuing Operations A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 43.5 - 43.5 - 43.5 Operating EBITDA (1.7) (3.5) (5.2) - (5.2) Gain on disposal of Main Event business - - - 12.6 12.6 Segment EBITDA (1.7)
Slide 26: Segmented Results – 1H23
APPENDIX 1 Segmented Results – 1H23 Discontinued Theme Parks & Continuing Operations A$m Attractions Corporate Operations Main Event Consolidated Segment revenue 43.7 - 43.7 - 43.7 Operating EBITDA 3.3 (4.0) (0.7) - (0.7) Gain on disposal of Main Event business - - - 682.4 682.4 Segment EBITDA 3.3 (
Slide 27: Specific Items by business unit – 1H24
APPENDIX 2 Specific Items by business unit – 1H24 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 (3.7) - (3.7) - (3.7) recover
Slide 28: Specific Items by business unit – 1H23
APPENDIX 2 Specific Items by business unit – 1H23 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 29: Defined Terms
DEFINED TERMS 29
Slide 30: Defined Terms
DEFINED TERMS Defined Terms Description DTA Deferred tax asset EBITDA Earnings before Interest, Tax, Depreciation and Amortisation EBIT Earnings before Interest and Tax F&B Food and beverage LTI Long term incentive NPAT Net profit after tax pcp Prior corresponding period PP&E Property, plant and equ
Slide 31: 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
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