Dreamworld accident: Ardent Leisure's value shaved by $200m in wake of Dreamworld tragedy Four people are killed in an accident on a river rapids ride in the Dreamworld amusement park on Australia's Gold Coast. Dreamworld operator Ardent Leisure shares have been hit hard by investors, losing 20 per cent at the opening of trade after Tuesday's tragic accident at the theme park, which claimed the lives of four people.The stock was still down 17c, or 7.2 per cent, at A$2.18 (NZ$2.34) as of 11.10am in Sydney, shaving its market value to just over A$1 billion.The declines come on top of an 7.8 per cent fall the company suffered on Tuesday after news broke of the fatal malfunction of its Thunder River Rapids ride. Luke Dorset, his partner Roozi Araghi, and Kate Goodchild, were killed in an accident at Australia's Dreamworld. Dreamworld opened in the 1990s when it was owned by Macquarie Leisure Trust.READ MORE * Dreamworld to re-open * Killed Canberra couple were trailblazing heroes who stood up to bureacracy * New Zealand woman Cindy Low separated from family to sit in ill-fated raft * Kiwi man let group in front who died in tragic accident * Four dead in theme park tragedy * Dreamworld fatalities come after history of theme park accidents * Kiwi theme park-goers to be refunded * Union had raised operational issues with Dreamworld
for over a year * Ride had 'broken down' earlier in the day * Thunder Rapids: Moderate thrill New Zealander Cindy Low (top right) has been described as a beautiful wife, mother and dear friend. It comes as the Gold Coast theme park is preparing to open one of its biggest attractions next month, Australia's first Lego Certified Store.Ardent Leisure's chief executive Deborah Thomas has said the store would be the largest retail outlet at Dreamworld and would encourage more people to visit the park more often.Set to face its shareholders in the wake of the disaster, the company is scheduled to hold its annual general meeting in Sydney on Thursday. Ardent Leisure's share price has plummeted in the wake of Dreamworld tragedy. 'THE GOLD COAST IS SAFE' Queensland Premier Annastacia Palaszczuk has begged tourists not to cancel their Gold Coast holiday plans in the wake of the Dreamworld tragedy.The city's theme parks, which attract about 1.8 million visitors annually, had never had a fatality until the catastrophic malfunction on the Thunder River Rapids ride killed four adults.
Palaszczuk pleaded with holiday makers not to turn their backs on the tourism-dependent city."The Gold Coast is safe," she told Channel 7 on Wednesday, adding that a thorough investigation must head off the risk of similar tragedies in the future."Please continue to show your support to the Gold Coast and to Queensland," she urged visitors, when she appeared on Channel Nine."Please don't alter your holiday plans. Please continue to show your support. We will get to the bottom of this."Mayor Tom Tate said Tuesday was a very dark day for the Gold Coast."The task will be that these sort of things will not re-occur so that we can earn the trust of Australian people to come back to the Gold Coast and to have those wonderful memories for the rest of their life," he told Channel 7."We have seen some tragedies that hit the Gold Coast. But this is the most emotional."Dreamworld is closed until Friday.Earlier inindefinitely but police were in talks with the theme park over how long that will be for, Queensland Police Assistant Commissioner Brian Codd told reporters."
These types of investigation are not quick, they take a lot of time," he said. "It's absolutely vital that we get to the bottom of all aspects of this tragedy."Dreamworld said in a statement late yesterday that its "concern now is to support the families of the victims and to provide appropriate counselling to our visitors and staff".Dreamworld accounts for about 28 percent of Ardent's total earnings, according to Morgans Financial."Negative customer sentiment is highly likely," Morgans analyst Josephine Little said in a note to clients, cutting her recommendation on Ardent Leisure stock to hold from add.Little forecast theme-park revenue and operating profit at Ardent would decline by 20 per cent and 33 per cent respectively in the 2017 financial year.Previous theme park accidents have had material consequences for their operators.A fire on June 9, 1979 at Luna Park in Sydney destroyed the amusement park's ghost train and killed six children and one adult.The fire forced the park to close until 1982, when it reopened under new owners.
THEME PARK OPERATOR'S HISTORY OF STRIFEWith all Dreamworld's image of family fun and easy going life on the Gold Coast, its corporate history has been chequered, including trading in and out of receivership.Since Joh Bjelke-Petersen opened the theme park in 1981, Dreamworld has been an enormous boon to the economy on the Gold Coast.Initially it employed 220 people and helped grow the area's fun park industry.Dreamworld was originally owned by its creator John Longhurst, the father of Australian water-ski champion and two time Bathurst 1000 winner Tony Longhurst. In 1989, Bruce Jenkins's Dreamco purchased the park from Longhurst. The Dreamco company went into administration a year later.It took until 1994 for the company to trade its way back into the black. In 1996, the business was acquired by Singaporean businessman Kua Phek Long before a consortium called Leisure Wide Property Trust purchased Dreamworld from Mr Kua in 1998.By 1999, a voracious Macquarie Bank saw value in the assets and packaged them up in one of its externally managed funds, Macquarie Leisure Trust.But as the global financial crisis took hold and threatened the Macquarie model of externally managed trusts
, Ardent Leisure took over from Macquarie Leisure Trust in 2009.In August, Ardent reported a 32 per cent jump in net profit to A$42 million with a 16 per cent jump in revenues from continuing operations. Revenue from its theme park business, which includes Dreamworld, rose 8 per cent to A$107 million.For all of Dreamworld's popularity on the Gold Coast, the company's future appears not to be focussed on Australia. Balnaves acknowledged future growth of the business lay in the United States."The result supports the board's decision to continue prioritising investment in our high‐growth, high‐returning [US] business, and implement strategies to improve the performance of our Australian divisions," Balnaves said in August.Significantly, the average spending per customer at its local theme parks fell 4.5 per cent in the period to A$44.57 from A$46.68.- SYDNEY MORNING HERALD, AAP AND BLOOMBERG Search AllLEGO BioncleLEGO BooksLEGO BrickStixLEGO CityLEGO ClassicLEGO CreatorLEGO DC Super Hero GirlsLEGO DC SuperHeroesLEGO DimensionsLEGO Disney PrincessLEGO DuploLEGO ElvesLEGO FriendsLEGO GamingLEGO Home & FoodwareLEGO JuniorsLEGO LightingLEGO Limited DistributionLEGO Marvel SuperHeroesLEGO MindstormsLEGO MinecraftLEGO MinifiguresLEGO MixelsLEGO Nexo KnightLEGO NinjagoLEGO Party SuppliesLEGO Speed ChampionsLEGO Star WarsLEGO StationeryLEGO StorageLEGO Storage BagsLEGO TechnicLEGO the Batman MovieLEGO Watches & ClocksLEGO What's Coming