Dreamworld attendance down, profits up

Despite a slump in interstate attendance at the Gold Coast theme park for the recent half-year period, Dreamworld has seen an increased operating margin, increasing the Macquarie Leisure Trust-owned park's overall profits.

Though the park has seen a 3.1% attendance increase from Queensland visitors, overall attendance is down 2% for the last six month period, with interstate visitation down 3.2% and international down 9.8%. Queensland visitors make up a total of 43% of attendance in the latest figures while interstate and international make up 38% and 19% respectively. Attendance was down to 744,000, down 15,000 on the corresponding half-year this time last year.

Through what the company describes as improved operating efficiencies, Dreamworld increased operating margins to 40.1%. Most major theme park operators around the world such as Disney and Six Flags have profit margins ranging from 15-30%.

Dreamworld and its new water park WhiteWater World now collectively contribute 58% of Macquarie Leisure Trust Group's profits and account for 50% of the Group's total assets, which also include Australia's largest chain of bowling centres, marinas across the country and a chain of family entertainment centres in the United States.

With the opening of WhiteWater World adjacent to the theme park, the Group's CEO Greg Shaw has insisted that the new park is not diluting the existing park's attendance and suggest that the close proximity will benefit both parks with improved ticketing options such as the World Pass. Mr Shaw commented, "As WhiteWater World becomes better known in interstate markets, we believe the World Pass will provide an increasing contribution towards total attendance of both parks."

Capital expenditure estimates have also been put forward by the group with Macquarie Leisure assigning $6.1 million per year to Dreamworld, up from $6 million in previous years' estimates. As can be expected, expansions to the $56 million WhiteWater World aren't on the cards for the near future with no capital expenditure assigned for the new park.