Ardent revenue rises on strong US business

Theme park operator Ardent Leisure says its popular indoor family entertainment centres in the US is behind a solid first quarter revenue rise.

Family entertainment centres in the US continue to be theme park operator Ardent Leisure's star performer.

Ardent's group revenue rose by more than 10 per cent to $139.1 million in the three months to the end of September.

Its laser tag, tenpin bowling and indoor rock climbing US chain, Main Event, is largely behind the group's underlying earnings rise of 5.2 per cent to $34.17 million.

The Main Event chain lifted revenues by 40 per cent to $US28.6 million ($A30.94 million) in the quarter, while underlying earnings rose 30 per cent to $US6.5 million.

Ardent's chief executive Greg Shaw says the improving US economy was partly behind Main Event's success.

"There's no doubt the overall consumer in the US is feeling more confident," he told AAP.

"We have added a full service casual dining restaurant to these facilities which has helped increase patronage."

The chain of 17 centres across the US is expanding, with another three due to open by March and seven more planned for fiscal 2016.

However, Ardent's theme park business, which includes Dream World and Whitewater World on Queensland's Gold Coast, has suffered a dip in earnings.

Revenues dropped to $25.4 million from $26.5 million, while underlying earnings fell seven per cent to $9.62 million.

Mr Shaw said the lower revenue would be partly offset by a $710,000 increase in prepaid annual pass revenue, which was yet to be recognised in the group's accounts.

"The locals have bought a lot more annual passes in the quarter but we don't take that revenue into account until they come to the park for the first time," he told AAP.

He said the group was investing in more food and beverage choices, including an "upmarket" pizza restaurant and burger bar at Dream World.

Elsewhere, the group's health club division lifted revenues and earnings by nine and five per cent, respectively.

Its bowling centres and marinas business also saw improvements.

Morningstar Equities analyst Brian Han said Ardent's results were likely to please investors, including a lift in its once lagging bowling business.

"The one standout was the bowling results which increased earnings by about seven per cent. That's really positive," he said.

Ardent's share rose 4.5 cents, or 1.32 per cent, to $3.455 at 1400 AEDT, while the wider market was down.


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