How Coast Entertainment’s Rivertown Lifted Revenue 44% Above Pre-COVID Levels
Coast Entertainment Holdings reports a robust FY25 with double-digit growth in visitation and revenue, driven by new attractions and strong promotional campaigns. Despite weather disruptions and cautious international recovery, the company starts FY26 on a high note.
- 11.2% visitation increase and $96.4 million revenue in FY25
- Rivertown attraction opening and promotional sales fuel ticket growth
- Theme Parks segment expects double-digit EBITDA growth, best since FY16
- Corporate costs decline supports consolidated earnings improvement
- Share buyback program nearing completion with $33.9 million cash reserves
Strong Recovery and Growth Amid Economic Challenges
Coast Entertainment Holdings Limited (ASX – CEH) has delivered a solid performance for the financial year ended June 24, 2025, with visitation rising 11.2% and operating revenue climbing 10.8% to $96.4 million. This marks a significant 43.6% increase compared to pre-pandemic FY19 levels, underscoring the resilience of the theme parks and attractions sector within a challenging consumer discretionary environment.
The company’s strategic focus on enhancing guest experiences continues to pay dividends, reflected in category-leading guest review scores. The December 2024 launch of the Rivertown attraction, alongside targeted promotional campaigns such as Black Friday and end-of-financial-year sales, has been instrumental in driving ticket sales and expanding the annual passholder base.
Navigating Weather Disruptions and International Visitor Trends
Despite the temporary closure of key sites like Dreamworld, WhiteWater World, and SkyPoint due to ex-Tropical Cyclone Alfred in March 2025, the parks managed to rebound quickly. The cyclone’s impact on the broader Gold Coast tourism market caused some Easter holiday disruptions, yet Dreamworld still recorded increased attendance and revenue during this period.
International visitation is gradually recovering but remains below historical norms, particularly from Asian markets such as China. This shift in visitor mix continues to influence overall attendance patterns, though domestic demand appears robust.
Financial Discipline and Capital Management
Corporate costs have been significantly reduced, with second-half expenses aligning closely with the first half, helped by lower insurance premiums and audit fees. This cost discipline has contributed to an expected double-digit growth in EBITDA for the Theme Parks & Attractions segment, marking the best earnings performance since FY16.
The Group’s capital position remains strong, holding $33.9 million in cash and having repurchased 34.2 million shares at a cost of $14.5 million under its ongoing buyback program, which is nearing its limit. The $10 million standby credit facility remains undrawn, providing additional liquidity headroom.
Regulatory Watch and Future Outlook
Attention remains on the Group’s land development application, which may be subject to a government ‘call-in’ process. While no formal decision has been made, Coast Entertainment has indicated it may challenge any conditions deemed overly restrictive or unworkable.
Looking ahead, the Group has started FY26 strongly, with double-digit growth in ticket sales and attendance in July, supported by improved attraction offerings and favorable winter holiday trading conditions. Management remains cautiously optimistic that ongoing investments and customer focus will sustain momentum as macroeconomic conditions evolve.
Bottom Line?
Coast Entertainment’s FY25 momentum and disciplined capital management set the stage for navigating regulatory hurdles and sustaining growth in FY26.
Questions in the middle?
- How will the potential government call-in impact the land development application and future expansion?
- Can international visitation recover sufficiently to support continued revenue growth?
- What is the timeline for resuming and completing the share buyback program?
