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.
Editor, Money Morning
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