Ardent Leisure Group

Ardent Leisure’s suite of premium leisure assets is anchored by the Dreamworld theme park in Queensland and its neighbouring property, WhiteWater World. It also owns the SkyPoint observation deck in Surfers Paradise. We particularly like Ardent’s growth prospects with Main Event Entertainment, which features centres anchored by bowling and laser tag in multiple states across the US. Main Event grew revenue 14% in FY21. We see Ardent benefiting in particular from the unlocking of the NSW-Queensland border and generally from a world that is leaving the Covid lockdowns behind and looking to have fun. Ardent Leisure’s earnings are expected to normalise in FY22 at above A$120m and grow at double digits thereafter. Additionally, we believe the EV/EBITDA multiple of only 8.4x for FY23 consensus is inexpensive.

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