Value of Ardent Leisure's theme parks written down by up to $27m

Dreamworld re-opened in December, 2016 more than six weeks after the deaths of four people on the Thunder River Rapids. Picture / AAP

Theme parks and entertainment centres operator Ardent Leisure will write down the value of its theme parks by A$15 million to A$25m ($27m) after attendances failed to fully recover from the fatal accident at Dreamworld in October 2016.

Ardent said that Dreamworld, WhiteWater World and SkyPoint should break even in terms of first-half earnings and that attendances at Dreamworld have improved more slowly than originally projected.

Dreamworld attendances over the crucial school holiday period rose by 41.2 per cent compared to a year ago, when attendances plummeted following the deaths of four people on a ride.

"As a result, the group expects to book a further non-cash, pre-tax valuation impairment charge in the range of A$15 million to A$25 million in its accounts for the first half of FY18," Ardent said.

Ardent expected its theme parks to make a positive contribution to earnings over the full financial year.

Ardent said its Main Event family entertainment centres in the US grew revenue by 1.3 per cent in the first half, while growth momentum had continued into January but is anticipated to moderate in coming weeks.

But some Main Event locations were experiencing pressure on margins, were underperforming in terms of sales or had been hit by Hurricane Harvey, and costs had increased due to higher staff levels.

"As a result, Main Event's core first half Ebitda (earnings before interest, tax, depreciation and amortisation) is expected to be flat, in US dollars, compared with the prior corresponding period," Ardent said.

Ardent also said on Friday that it expects to gain a tax credit of US$10m ($13.6m) to US$13m in the first half as a result of the recent corporate tax reductions in the US.