While the recently released results for the last financial year were negative (as was expected) they were certainly not nearly as bad as I had expected. And much more importantly it looks like the company may have reached the bottom with significant growth experienced in all divisions in July.
As I have previously written in regards to this stock, I always felt that the first quarter results for the 2011 financial year (due to be released around October 2010 I think) would mark the beginning of a significant improvement in results with easier comparable periods and also the full effects of the opening of new bowling centres, gyms and theme park attractions. For me this would have been the make or break in terms of sticking with this company.
I was pleased to see that in July theme park revenues are up 22.8%, marinas up 7.9%, bowling up 9.6%, Main Event up 17.1% and Goodlife gyms up 21%. Their new Rooty Hill RSL AMF bowling centre has been the best performing centre to date.
We will also see more new bowling centres, gyms, new theme park attractions (Tower of Terror 2 at Dreamworld in September and possibly other new rides over the next few years) and a new outdoor adventure skywalk attraction for their Q1 observation deck. These should all help to contribute to the positive momentum
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