Regulatory Call-In and Share Buyback Pose Key Challenges for Coast Entertainment

Strong Financial Performance Amid Challenging Conditions

Coast Entertainment Holdings Limited has delivered a standout FY25, posting its highest operating revenue and EBITDA since 2016. Despite macroeconomic headwinds and weather disruptions, the company’s Theme Parks & Attractions segment saw a 10.8% increase in operating revenue to $96.4 million, buoyed by a 10.5% rise in ticket sales and an 11.2% increase in visitation compared to the prior year. These figures notably surpass pre-COVID levels, signaling a robust recovery and growth trajectory.

EBITDA excluding specific items climbed 19.4% to $8.8 million, marking the third consecutive year of positive earnings and reflecting improved operational leverage and cost management. Corporate costs were trimmed by $1.6 million, underscoring management’s focus on efficiency amid inflationary pressures.

Rivertown Launch and Guest Experience Drive Momentum

The December 2024 opening of Rivertown, featuring the Jungle Rush family coaster, Murrissippi Motors, and Jane’s Rivertown Restaurant, has been a pivotal growth catalyst. The new precinct has received overwhelmingly positive guest feedback and media coverage, contributing to a strong uplift in attendance, revenue, and EBITDA in the second half of FY25. This revitalisation effort is central to Coast Entertainment’s strategy to enhance guest experiences and extend market reach.

Additional initiatives such as expanded packaging with hotel and travel partners and successful promotional campaigns, including Black Friday and end-of-financial-year sales, have further supported growth. The company also maintained a 98% attraction uptime, ensuring reliability and guest satisfaction, which has been recognised with a Platinum Safety Award for aquatic safety excellence.

Capital Management and Strategic Growth Initiatives

Coast Entertainment completed a second share buyback program, acquiring 43.2 million shares at a total cost of $17.7 million, reducing the total shares on issue to approximately 388.6 million. The company’s balance sheet remains debt-free with $33.9 million in cash and significant tax losses available, providing financial flexibility for future investments.

Looking ahead, the company is progressing with the development of the King Claw attraction, a larger and faster successor to the iconic Claw ride, expected to open by the end of 2025. Meanwhile, a land development application has been called in by the Queensland Minister for State Development, shifting decision-making authority from the local council to the state level. The timing and outcome of this process remain uncertain but could unlock further value for shareholders.

Positive Start to FY26 and Market Outlook

Early FY26 trading shows strong momentum with ticket sales up 54% and visitation up 35% year-to-date in October, surpassing FY16 levels. Operating revenue is up 20%, supported by favourable weather and ongoing promotional success. The company’s SkyPoint attraction also reported record revenue and EBITDA, while new collaborations, such as the partnership with Network 10 and Endemol Shine Australia to reinvigorate Big Brother, are enhancing brand visibility.

While international tourism recovery remains a key opportunity, particularly with China visitation still below pre-pandemic levels, Coast Entertainment’s focus on local markets and diversified revenue streams positions it well for sustainable growth. The company’s strategic investments and operational excellence continue to resonate with guests, underpinning optimism for continued momentum as macroeconomic conditions improve.