Village Roadshow issues profit warning
Shares in Village Roadshow have plunged more than 10 per cent after the company warned its half year results will be "substantially below" the previous year's.
The company says it experienced challenging conditions at its Gold Coast and Sydney theme parks, and in its Village Cinemas business, during the six months to December 31.
The owner of Warner Bros Movie World, Sea World and Wet'n'Wild says the October 2016 tragedy at rival amusement park Dreamworld continued to hurt its theme parks' visitor numbers, while a slow schedule of new releases affected cinema attendances.
Shares in the company dropped 44 cents, or 10.7 per cent, to $3.67 on Tuesday, wiping $71 million from its market value.
Village Roadshow made a $6.7 million net loss in the first half of the 2016/17 year, with revenue of $545 million.
The company said it has seen an improvement in ticket sales at its theme parks in January, and its cinema business is expected to recover in the second half to finish slightly below the prior year.
Village Roadshow said it expects its full-year net profit, before material items and discontinued operations, will be in the range of $12 million to $17 million.
It made a net loss of $66.7 million in 2016/17.
The company will release its half year results on February 16.
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