Why has Village Roadshow’s Share Price Dropped by Over 12% Today?

Village Roadshow Limited’s [ASX: VRL] share price has fallen by 12.70% today, following the release of a trading update.

Shares are currently trading at $2.75, down from $3.15 yesterday.

Why has the share price fallen?

The fallen share price reflects the decrease in expected earnings for FY18, revealed in today’s trading update.

The company has stated that due to challenging trading conditions experienced in both their Theme Parks and Cinema Exhibitions, they expect net profit after tax to be within a range of a $10 million loss to break even.

Village stated that the forecast downgrade was a result of their Theme Parks on the Gold Coast experiencing low attendance throughout the Commonwealth Games, as well as a wet March. Along with the Cinema Exhibition division facing a slow start to the financial year.

What’s next for Village Roadshows?

Moving forward, things are looking positive for Village Roadshows.

Village expect that the Theme Parks will benefit in the long term from the highly visible media coverage of the Commonwealth Games, which will generate tourism growth into the region.

Along with the Cinema Exhbition division to recover partially in the remainder of FY18, as major releases such as the latest Avengers and Star Wars sequels, Deadpool 2and Jurassic World: Fallen Kingdom are all scheduled to be released in the last quarter.


Danielle Rawlings,
For Money Morning

PS: If you want to lay down a little money on the hottest corner of the ASX right now�but you don�t know your way around the small-cap sector�this report is for you. Get access now (free).

Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Fat Tail Investment Research, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.

Money Morning Australia