What Happened to Ardent Share Price?
Shares of Ardent Leisure Group Stapled [ASX:ADD] lost 3.09% today. Shares went from trading at $1.875 yesterday down to $1.815 at time of writing.
Why the Share Price Drop?
The group’s chief executive officer and managing director Simon Kelly has unexpectedly resigned after spending six months in the position. He gave no reason for his resignation.
Kelly said he remained ‘very positive about the potential of the Group’s businesses.’
Geoff Richardson, the group’s chief financial officer will be taking over as interim chief executive officer until the board of directors finds a replacement.
AAD is the owner of theme parks Dreamworld and WhiteWater World, and indoor entertainment venues such as AMF and Main Event — a bowling leisure centre in the US — along with health clubs and marinas.
What Now for Ardent Leisure Group?
According to the press release, the company is ‘trading broadly in line with expectations’ of its core EBITDA for financial year 2018.
Dreamworld, which makes up 11% of the business remains challenged after last year’s tragedy, but ‘within expectations.’
So does Main Event, which holds 46% of the EBITDA contribution. The company is planning to accelerate its growth in the US to 200 centres.
The bowling and entertainment business is tracking 20% higher than the prior period.
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