The Village Roadshow Limited (ASX: VRL) share price has jumped 2.17% on the ASX today after a solid half-year result in which the company reported a net profit after tax (NPAT) of $2.4 million.
What happened in first-half earnings?
The company cited a turnaround in its Theme Parks segment as a key driver of the result, with Gold Coast Theme Parks 1H19 ticket sales dollars up 27% on 1H18. This comes as theme parks around Australia continue to stabilise after initial declines in the wake of the October 2016 Dreamworld tragedy.
Group EBITDA rose 31% on prior corresponding period (pcp) to $65.0 million in the half, while NPAT excluding material items rose to $12.8 million (from $0 in 1H18).
The result was also buoyed by strength in the Cinema Exhibition Industry while the company's cost reduction program implemented in FY19 remains on track to deliver annualised savings of $10 million.
Leveraged for the troubled group reduced to 2.04x (from 2.83x in 1H18) while net debt was reduced from $338.5 million to $216.4 million in the half.
Pleasingly for investors, the Board plans to reinstate dividends at the full year result in August 2019 if performance continues to meet expectations.
The company endured a challenging 2018 as it's share price plunged 45% throughout the year to $2.805 per share as at 31 December 2018. While it has since recovered slightly to $3.26 per share, there's plenty of work still to do to keep debt under control and return to long-term profitability.
Foolish takeaway
I personally am not bullish on the leisure industry and particularly given this morning's result from Ardent Leisure Group Ltd (ASX: ALG) which saw them post a $21.7 million loss.
For those who are similarly bullish on leisure, I'd suggest checking out these top growth shares that have been tipped as market beaters.
