Coast Entertainment (ASX:CEH) reported a “solid performance” for the first half of FY2026, citing strong visitation and ticket sales momentum following recent attraction launches at Dreamworld and continued growth in annual passes, according to comments from Chairman Dr. Gary Weiss, CEO Greg Yong, and CFO José de Sacadura on the company’s earnings call.
Management also emphasized that FY2026 is a 53-week year, meaning the statutory first-half results reflect 27 weeks of trading compared with 26 weeks in the prior corresponding period. Executives said the additional week benefited reported numbers, but stressed that like-for-like trading performance was “excellent.”
Key first-half financial and operating results
Profitability growth outpaced revenue gains, which management attributed to operating leverage in a largely fixed-cost base. Theme parks and attractions EBITDA (excluding specific items) rose to AUD 11.2 million, up 169% versus the prior period and exceeding the full-year FY2025 theme parks and attractions EBITDA result cited by the company (AUD 8.8 million). At a consolidated level, EBITDA excluding specific items increased to AUD 8.7 million, up 368% over the prior period, while statutory net profit was AUD 3.2 million.
De Sacadura highlighted that the prior period’s statutory results included a AUD 5.2 million benefit from specific items, “mostly related to one-off insurance income arising from the FY2024 summer storms,” which he said should be considered when comparing year-over-year performance.
- Operating revenue: AUD 62.2 million, up 30.2%
- Theme parks & attractions EBITDA (ex specific items): AUD 11.2 million, up 169%
- Group EBITDA (ex specific items): AUD 8.7 million, up 368%
- Statutory net profit: AUD 3.2 million
Below EBITDA, depreciation and amortization increased by AUD 1.1 million, which the CFO said reflected a higher asset base after “significant capital investment” over the past 12–18 months. Net interest income declined by about AUD 1 million due to lower average cash balances and lower deposit rates.
Annual passes and deferred revenue growth
Management repeatedly pointed to annual passes as a key driver of momentum, while noting the accounting timing impact on reported revenue and per-capita metrics. De Sacadura said annual passes again increased as a proportion of the sales mix, with revenue recognized over 12 months. As a result, deferred revenue balances increased 43% during the period to almost AUD 22 million by the end of December (also referenced as AUD 21.8 million at 30 December 2025).
Yong said that on a like-for-like 27-week basis, operating revenue was up 21.8%, while ticket sales rose 38% and attendances increased 32%. He added that total per capita was below the prior period on a like-for-like basis partly due to “mathematical dilution” from annual passes, because guests may visit immediately while the ticket revenue is recognized over the subsequent 12 months.
During Q&A, Yong argued that while annual pass holders may spend less per visit, their aggregate spend across multiple visits can exceed that of a one-day visitor over the course of the pass term. He also described annual passes as a “weather hedge” and said the local pass-holder base can support visits from friends and family traveling to the Gold Coast.
Attraction launches, activations, and guest experience focus
Executives cited new and refreshed experiences as key contributors to attendance growth. Yong discussed the mid-December launch of King Claw, describing it as a high-thrill replacement for the prior “Claw” ride and stating the project was delivered on time and on budget. He said the launch generated mainstream and social media coverage and that early guest response was “very strong,” with management believing it was additive to new and repeat visitation over the holiday period.
He also highlighted a strategic collaboration announced in September 2025 with Australian Geographic, which introduced “Wild with Australian Geographic,” a reimagined wildlife precinct. Yong said the partnership is intended to boost brand awareness, strengthen Dreamworld’s education business, and reinforce wildlife education and conservation themes. He pointed to additions including “Our Country,” a touring 360-degree immersive experience previously showcased at the World Expo in Japan, and a rebooted Woolshed Theatre offering “curriculum-aligned presentations” to support school group visitation.
In addition to new attractions, the company said it has been using events and activations to deepen engagement. Yong cited the Dreamworld Fun Run, a trial of extended trading hours with evening fireworks during the Christmas period, and a focus on building loyalty and repeat visitation. He said Dreamworld achieved a new record daily attendance during the peak holiday period, with the car park reaching capacity and overflow parking required.
Management also highlighted guest satisfaction performance, with Yong saying guest scores remained strong even with “materially higher daily attendance.”
Balance sheet position and capital allocation
Coast ended December with AUD 37.6 million in cash, no drawn debt, and a renewed and increased bank loan facility of AUD 20 million that remains fully undrawn, management said. Operating cash flow was AUD 17.3 million, up AUD 13.4 million, which the CFO attributed to stronger trading and higher annual pass sales (with cash received upfront). Capital expenditure totaled AUD 10.3 million, including approximately AUD 4 million of maintenance CapEx and AUD 6.3 million of development CapEx, largely tied to completion of King Claw.
The company also completed its second on-market share buyback, with the CFO stating the final AUD 3.7 million was funded earlier in the half.
De Sacadura discussed what he characterized as balance-sheet value not reflected under current accounting, including AUD 134 million of available tax losses and a further AUD 47 million of tax-deductible temporary differences for which no deferred tax asset is recorded. He said the combined tax benefit represented AUD 54.4 million that remains off balance sheet.
He also referenced the historic-cost accounting treatment for Dreamworld and SkyPoint assets, noting SkyPoint was independently valued at AUD 37 million in December 2023, which he said was nearly AUD 27 million above its book value at the time. De Sacadura said that adjusting for unrecognized tax assets and the SkyPoint valuation uplift alone implied a pro forma net asset position of around AUD 302 million, or AUD 0.78 per share, while noting this did not include additional benefit from SkyPoint’s reported earnings growth since that valuation or any potential upside for the Dreamworld site.
Second-half trading and outlook considerations
Management said positive trends continued into the second half, though it expects growth rates to moderate as the company cycles a stronger comparative period following the December 2024 opening of Rivertown and due to timing effects from the 53-week year. Yong said January delivered growth on a like-for-like basis, with year-to-date Dreamworld and WhiteWater ticket sales up 34%, visitation up 28%, revenue up 22%, and EBITDA excluding specific items up 90%. He also said SkyPoint delivered year-to-date revenue and EBITDA “best on record.”
During Q&A, executives reiterated that January attendance and revenue were not down year-over-year, pointing to timing shifts in where the peak Christmas-to-New Year week fell between December and January across the two periods.
Yong also disclosed the closure of the Motocoaster thrill ride, with the final day of operation on 1 February 2026. He said management is evaluating strategic options for the site and will update the market in due course, but did not provide further details.
Separately, the company described a joint initiative with Network Ten and Endemol Shine Australia to host Big Brother at Dreamworld, including building a new house on site. Yong said the show premiered 9 November and has become Network Ten’s “biggest reality TV show since 2023” and its biggest ever show on streaming, generating national exposure and incremental revenue streams including catering, merchandise sales, and some post-production access to the house.
The company also announced a partnership appointing Dreamworld as the official theme park partner of the Australian Olympic Team, spanning Dreamworld, WhiteWater World, and SkyPoint, with a media and stakeholder event planned for 17 February.
Finally, management updated investors on the group’s development application process, noting that Queensland’s Deputy Premier and Minister for State Development, Infrastructure and Planning issued a statutory call-in notice, meaning the Minister will determine the application rather than the local council. Yong said the statutory process is ongoing and that the company expects a final decision before the end of the financial year, while emphasizing that the group has not yet made decisions or commitments on land use if approved.
About Coast Entertainment (ASX:CEH)
