Ann: Ardent Leisure Group Half Year Financial Res, page-30

re: Ann: Ardent Leisure Group Half Year Finan... EPS is down 30% for two major reasons:

1. Major equity raising done during the GFC, to strengthen the balance sheet and pay Macquarie $17m to internalise (Ardent was not alone in raising capital during the credit crunch- and unfortunately had to do so at a highly dilutive price during a sharemarket crash)

2. Dreamworld's earnings have come off a lot from their peaks due to a price war waged by Village, which operates 4 parks on the Gold Coast versus Ardent's one. Ardent has therefore had to be a price follower. Latest result presentation flags that both Village and Ardent are now increasing their prices.

Opeating margins at all businesses have remained very strong despite the challenging environment, due to managements focus on cost management.