AAD Details
·         Mixed results in third quarter: Ardent Leisure Group (ASX: AAD) stock rose over 1.03% on April 10, 2017 after witnessing some weakness initially as the group reported its third quarter results. The group’s Main Event segment’s unaudited revenues rose 25.1% year on year (yoy) to US$61.5 million during the period from January 01, 2017 to March 31, 2017. This was a record third quarter for Main Event. On the other hand, the Constant center sales fell over 2.5% on a yoy basis. Main Event segment witnessed pressure in several markets given the decreasing consumer discretionary spending environment, especially in Texas which has 14 out of 19 constant centers. However, the group reported that their Constant centre sales trends improved sequentially through each month of the quarter, especially in March as their initiatives like Main Event’s primary advertising strategy from radio to television at the end of February paid off. AAD is also now planning to add only eight Main Event centres in FY18 rather than 11 as previously guided. This will help the group have an increased focus on strategies to improve constant centre growth and refurbishment. The overall recovery of Theme Parks has also been said to be on track. The group has also appointed Bronwyn Weir as interim Company Secretary with an immediate effect while Alan Shedden is retiring from his position as Company Secretary and Group General Manager Corporate Services effective April 28, 2017.

·         Recommendation:AAD stock recovered over 20.4% in the last four weeks (as at April 07, 2017) and we give a “Hold” recommendation on the stock at the current price of $ 1.96 


Theme Parks Recovery (Source: Company Reports)

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