The Village Roadshow Ltd (ASX: VRL) share price has fallen into the red in morning trade following the release of its annual general meeting update.
At the time of writing the entertainment company's shares are down 1.5% to $3.67. This brings its year-to-date decline to a disappointing 19%.
What was in the update?
Today's update was a touch underwhelming. Once again the company advised of weakness in its theme park business due to the impact of the tragic events a year ago at Ardent Leisure Group (ASX: AAD) operated Dreamworld.
According to the release, year-to-date it has seen a 5.4% decline in theme park attendance in the Gold Coast as of 31 October 2017. However, it is optimistic that trading will strengthen in the summer months, leading to an improved EBITDA result from the segment compared to FY 2017.
Elsewhere, its cinema business isn't faring any better. Trading has been significantly below the prior corresponding period, reflecting an industry wide depressed box office. While there are some key releases due out in the coming months, the business is now expected to underperform the prior year. Unfortunately, the same is expected for its film distribution business.
But one positive, though, is that the board has indicated that it is likely to resume its dividend by the end of FY 2018 if things go as planned. This will no doubt be a welcome relief to shareholders and is potentially the reason why its shares have not sunk significantly lower today.
Should you invest?
While a turnaround may come in FY 2019, I would suggest investors hold off until there are signs of a return to growth.
In the meantime, investors may want to consider gaining exposure to the tourism boom through Event Hospitality and Entertainment Ltd (ASX: EVT) or Star Entertainment Group Ltd (ASX: SGR).
