Village Roadshow Share Price Drops by 4.29% Today

Village roadshow share price

Village Roadshow Limited [ASX:VRL] is an entertainment and media company, whose businesses include theme parks, film distribution, cinema and film production

Founded in in 1954, the businesses are located in Australia, New Zealand and the US.

The share price is down 4.29% for the day.

What’s caused the decline?

Village Roadshow’s share price has had a rough 2018, but what’s the reason for this?

Selling $51 million of their shares via an entitlement offer in a bid to reduce debt probably had  a big part to play.

Village Roadshow said the entitlement enables shareholders to buy five new shares for every 26 they currently own at an offer price of $1.65.

That, in combination with the sale of the Wet’n’Wild theme park, will bring them to a total of $87 million to reduce debt with.

Ticket sales for their other theme park, Dreamworld have also been declining, following the tragic events that transpired there.

A lack of high-quality movie releases has been hurting cinema attendance as well.

They just can’t seem to get it right at the moment.

What next for Village Roadshow?

Village Roadshow is expecting a loss of anywhere between $6 million and $10 million as a result of the difficult market.

But this doesn’t mean they’re not trying to turn things around.

Village expects to generate cost savings at its theme parks, but also believe that ticket sales will increase in 2019.

Village’s share price has been one to forget for the year of 2018, however a company that has been around since 1954 should have some tricks up their sleeves.

Regards,

Ryan Dinse,
Editor, Money Morning

PS: You’ll find over 2,000 stock listed on the ASX and on any given day a bunch will rise or fall. It’s near impossible to monitor these on your own. Our analyst Sam Volkering has picked out four Aussie stocks he believes could be top performers in 2018. Check out his free report The Four Best ASX Stocks for 2018.

 

Ryan Dinse

Ryan Dinse

Ryan Dinse is an editor at Money Morning. With an academic background in economics, he believes that the key to making good investments is investing appropriately at each stage of the economic cycle.

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