NZ Experience profit rises as visitors flock to new ride

Friday 20th August 2010

New Zealand Experience, which operates the Rainbow’s End theme park in Manukau, lifted underlying earnings 22% as its new Invader ride drew more visitors at higher ticket prices.

Underlying profit, which the company said is easier to compare with the previous year, rose to $1.1 million in the six months ended June 30, from $916,000 in the previous period. The company boosted visitor numbers 6.6% to 273,500. Net profit surged 68% to $1.5 million over the period.

NZ Experience finalised its lease extension with the Manukau City Council to 2034 from 2019, adding a one-off lease compensation benefit of $879,000 and a lease tenure adjustment of $80,000 to the bottom line.

“Trading revenues increased by 10% due to increased customer numbers, improved revenue per visitor at the gate and from new business operations within the Park,” the company said in a statement.

“This came from an admission price increase and the successful opening of the new Invader ride in December 2009.”

The company was forced to realise a $538,000 one-off cost related to tax rule changes relating to depreciation.

A fully imputed dividend of 2.50 cents per share was declared, representing an 83% distribution of underlying profit, up 11 on the previous period.

NZ Experience said it remains positive on the outlook for 2011, with a number of capital projects in the pipeline.

“Operationally we are looking to continue the upward trend in visitor numbers and revenues due to a full year of operation of the new Invader ride and the continuation of initiatives started in the 2010 financial year,” said the company.

It expects increase visitation to 285,000, with operating profit is forecast to increase with expectations of an after tax profit in the range of $1.3m to $1.5m as a result of improved EBITDA, and lower depreciation charges.

Almost three-quarters of NZ Experience’s shares are currently up for sale, after Canada’s Garlow Management Inc., the trustee for the Estate of George Ryerson Gardiner, indicated it is looking to sell the 27.2 million shares.

Garlow Management has been selling off the former assets of Emerald Capital Ltd. after Gardiner’s beneficiary died in 2008. Emerald Capital was liquidated last year with some $385 million worth of distributions, and Garlow sold its 14% stake in Ryman Healthcare last month.

NZ Experience shares rose 9.4% to 35 cents.

Businesswire.co.nz

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