Coast Entertainment Posts 10.8% Revenue Rise and 275% EBITDA Jump in FY25

A Year of Growth and Recovery

Coast Entertainment Holdings Limited (ASX – CEH) has delivered a standout financial performance for the year ended 24 June 2025, marking its strongest results since 2016. Operating revenue climbed 10.8% to $96.4 million, propelled by a 10.5% increase in ticket sales and an 11.2% rise in visitation. This growth reflects a steady recovery from the pandemic era, with revenues now 43.6% above pre-COVID levels recorded in FY19.

The company’s Theme Parks & Attractions segment was a key driver, reporting EBITDA (excluding specific items) of $8.8 million, up 19.4% year-on-year. This marks the third consecutive year of positive earnings growth, underscoring the resilience of Coast Entertainment’s core business amid ongoing macroeconomic challenges.

Strategic Initiatives Fuel Momentum

The launch of the Rivertown precinct in late 2024, featuring new attractions like the Jungle Rush coaster and Jane’s Rivertown Restaurant, has been pivotal. The new area not only boosted visitation but also enhanced guest experience, earning category-leading review scores. Complemented by successful promotional campaigns such as Black Friday and End-of-Financial-Year sales, these initiatives helped grow the annual passholder base and improve guest retention.

Food, Beverage, Retail, and Experience revenues also surpassed FY16 levels, indicating a broad-based uplift in in-park spending. Despite increased promotional activity and repeat visitation, revenue per capita remained stable, reflecting a balanced pricing strategy.

Capital Management and Shareholder Returns

Coast Entertainment completed its second on-market share buyback in August 2025, repurchasing 34.2 million shares for $14.5 million during FY25, with an additional 9 million shares bought in FY26. This move signals confidence in the company’s growth trajectory and commitment to enhancing shareholder value.

Corporate costs fell 25.2% to $4.7 million, the lowest in over a decade, driven by savings in insurance and audit fees. The company ended FY25 with a healthy cash balance of $33.9 million and an undrawn $10 million standby credit facility, providing ample liquidity for future investments.

A Promising Start to FY26

Early trading in FY26 has been robust. July 2025 saw ticket sales surge 66%, visitation increase 38%, and EBITDA climb 48% compared to July 2024. This strong momentum continued into August, with visitation up 38% through mid-month. The success is attributed to favorable holiday trading conditions and ongoing promotional efforts.

Looking ahead, Coast Entertainment plans to open the King Claw ride, the Southern Hemisphere’s largest Gyro Swing, and will benefit from the return of the Big Brother TV show to Dreamworld, enhancing brand exposure and guest engagement.

Challenges and Outlook

Despite these positives, the company remains cautious. Macroeconomic pressures and regional disruptions, including the aftermath of Tropical Cyclone Alfred, have impacted consumer spending and visitation patterns. International tourism recovery is gradual, with key Asian markets like China still below historical levels.

Additionally, regulatory uncertainty looms over land development plans, with a potential ministerial intervention pending. Coast Entertainment has paused its application process, awaiting clarity on this front.

Nevertheless, management’s focus on operational excellence, strategic investments, and capital discipline positions the company well to capitalize on improving market conditions and unlock further value.