Village Roadshow seems to have begun turning the nook financially with prospects returning to its theme parks and cinemas after a horror two-year run for its new personal fairness homeowners.
VRG Holdco, the entity that owns the storied Australian leisure group, posted a internet lack of $26.4 million for the 12 months to June 2021, in keeping with accounts lodged with the company regulator late final week. That end result was an enchancment on the $35.8 million loss the Village enterprise posted a 12 months earlier.
Non-public fairness agency BGH Capital – arrange by former Macquarie Capital banker Robin Bishop, and ex-TPG bosses Ben Grey and Simon Harle in 2017 – purchased the Village enterprise in December 2020 and delisted it from the ASX. The deal valued Village at near $586 million with expectations of turning across the ailing group, which owns the Warner Brothers and Moist ’n Wild theme parks, in addition to the Village Roadshow cinema advanced and movie distribution enterprise.
However the group has continued to battle below personal fairness possession, primarily because of the ongoing impacts of COVID-19 restrictions and final 12 months warned in its accounts that persevering with restrictions would threaten its ongoing monetary viability. Village, which additionally has a big movie distribution enterprise, was additionally dealing with structural shifts within the methods moviegoers wished to view new movies in the direction of streaming providers.
Whereas the impacts of the pandemic can nonetheless be seen in Village’s outcomes, the group’s administrators at the moment are upbeat following robust attendance throughout its companies.
“In fiscal 12 months 2023, the group expects robust summer season buying and selling and improved earnings underpinned by the launches of latest points of interest, and continued field workplace momentum from a pretty movie slate,” the group mentioned in its accounts.
The accounts present the rollercoaster that the Village enterprise has been on for the previous 12 months, with restrictions being loosened in October 2022 and earlier than new outbreaks curbed patron attendance at its venues.
“The height summer season buying and selling interval for each the group’s cinema and theme park operations was adversely impacted by the outbreak of the brand new Omicron COVID variant,” the group mentioned in its accounts.