Coast Entertainment Holdings Limited (CEH) Earnings Call Transcript & Summary

Thank you for standing by. Welcome to the Coast Entertainment Limited FY '25 Full Year Results Conference Call. [Operator Instructions] I would now like to hand the conference over to Dr. Gary Weiss, Chairman of Coast Entertainment Holdings Limited. Please go ahead, sir.

Thank you. Good morning, everyone, and thank you for joining us today for our presentation of the FY '25 full year results for Coast Entertainment Holdings Limited. My name is Gary Weiss, Chairman of Coast Entertainment. I'm joined today by our Chief Executive Officer, Greg Yong; and our Chief Financial Officer, Jose de Sacadura. Turning to Slide 2. I will start by providing an overview of the key highlights for the year, after which I will hand over to Jose and Greg to take you through some further detail. Turning to Slide 3. FY '25 has been a year of transformation and momentum for the group. At a time when many of the retail and consumer discretionary sectors have struggled, the group has delivered a solid performance, demonstrating the strength and resilience of its operating model. We have seen momentum building from these strategic initiatives and significant capital investment of recent years. The opening of Rivertown in December with the new Jungle Roche Family Coaster, Miracippy Motors and James Rivertown Restaurant was a defining moment for the group, delivered on time and on budget, that has received outstanding guest feedback and contributed to a stronger second half performance. King Claw now well advanced should add further momentum when it opens later in the year. In FY '25, the value of ticket sales increased by 10.5% and was 57.1% above FY '19 pre-COVID levels, the highest we have seen since FY '16. This was driven by the launch of Rivertown, increased promotional activity and our ongoing focus on delivering exceptional guest experiences. Visitation also grew 11.2% on prior year, 6.3% above pre-COVID levels supported by ticket sales growth, a larger annual pass holder base and with an increased repeat visitation. This resulted in the group delivering operating revenue of $96.4 million, up 10.8% on prior year and also the highest reported in 9 years. Additionally, the group's deferred revenue balance increased by 4.8% compared to June 2024, reflecting continued strong sales of annual passes. Notably, F&B retail and experience revenue for the year also surpassed FY '16 levels. Theme parks and attractions EBITDA, excluding specific items, rose 19.4% to $8.8 million, again, its best results since FY '16. At the group level, EBITDA, excluding specific items, improved 275% to $4.1 million, and the net loss from continuing operations narrowed to just $0.1 million, an improvement of $9.9 million compared to FY '24. Pleasingly, this momentum has continued into FY '26 with strong ticket sales and visitation in July and August so far, which Greg will talk to shortly. Over the last few months, we also finalized our FY '24 storm-related insurance claims and completed our second share buyback. We ended the financial year in a solid financial position with $33.9 million in cash, a debt-free balance sheet, valuable freehold holdings and $139.2 million in available tax losses. With a resilient business model, a clear strategic direction and a strong balance sheet, we are well placed to build on the momentum we have seen over the last few months. With that, I will now hand over to Jose to take you through the group's financial results in more detail.

Thanks, Gary, and good morning, everyone. Turning to Slide 4. As Gary mentioned, the group delivered another year of solid top line growth, with operating revenue up 10.8% on the prior period to $96.4 million. This was driven by a combination of higher entry revenue and increased in-park spend and was our strongest revenue results since FY '16 despite the ongoing challenging macroeconomic conditions. Importantly, we saw momentum build as the year progressed, with revenue growth in the second half of 11.9%, ahead of the 9.6% growth reported in the first half. However, these numbers don't tell the full story given that a large proportion of the ticketing mix is now made up of annual passes. These pass sales remain an important strategic lever both in providing upfront cash flow and in driving repeat visitation. As revenue recognition for the annual passes is spread over 12 months, the full benefit of these sales will continue to flow through into FY '26, hence, the $12.7 million in deferred revenue balance we are carrying at the end of June. Dreamworld ticket sales performance was a standout particularly in the second half of the year, which saw a growth rate over PCP more than double that of the first half, even while absorbing disruption from ex tropical cyclone Alfred. Greg will provide further color on this later in the presentation. However, the acceleration that we're now seeing reflects a lift from the opening of Rivertown in December supported by well-timed promotional activities including highly successful Black Friday and end of financial year sales campaigns. Theme parks and attractions EBITDA, excluding specific items, increased 19.4% to $8.8 million. This represents the third consecutive year of positive EBITDA earnings and growth for the business and demonstrates the earnings leverage possible when we combine steady revenue growth with a disciplined approach to managing our largely fixed cost base. At a group level, corporate costs, excluding specific items, also decreased 25% to $4.7 million, driven by insurance savings, lower order fees and ongoing efficiency initiatives. And I'll provide further detail on this later in the presentation. Putting all these component results together, consolidated EBITDA for the group, excluding specific items, improved to $4.1 million for the year, up 275% from the $1.1 million reported in FY '24. And at the bottom line, as Gary mentioned, net loss from operating operations reduced to $0.1 million, a $9.9 million or near 99% improvement compared to the prior year. As you can see from the table, the group statutory EBITDA and net profit results have been impacted by some unrealized nonrecurring specific items, and I'll provide some further detail on these next. Turning to Slide 5. Here, we detail the specific items impacting our reported results for the year. As you can see in FY '25, these items were predominantly positive but are nevertheless called out to enable investors to get a transparent view of the underlying trading performance and run rate of the business. As Gary briefly mentioned, during the year, we were pleased to finalize our insurance claims relating to the FY '24 storms. As part of this, we recognized $5.8 million of insurance income, comprising $3 million for property damage and $2.8 million for business interruption. This is in addition to the $0.7 million of insurance proceeds received last year in respect to storm-related property damage. Related to this, we have also recognized a $0.4 million expense for associated repairs and maintenance activities in the year. This follows $1.9 million recognized for the majority of the repair costs in the prior year. Other specific items impacting EBITDA include unrealized derivative gains on FX hedge contracts of $0.3 million and a noncash LTI valuation expense of $0.7 million. Below EBITDA, we have pulled out the tax impact of these items, and we've also called out a $0.2 million expense for tax losses in the year, which were not recognized as a deferred tax asset as well as a $0.8 million credit for utilization of deductible temporary differences for which we have not previously recognized the DTA. I'll draw your attention to the footnotes in the slide, which disclosed $139.2 million in tax losses and $48.2 million in deductible temporary differences together with a combined value -- tax value of $56.2 million, which are not carried in the group's balance sheet. And as I stated in previous presentations, despite this conservative accounting treatment, these items do continue to be of material value to the group as they do remain available for the group's future use. With that, I'll now hand over to Greg to take you through the performance of the Theme Parks and Attractions business.

Thanks, Jose, and good morning, everyone. It's a pleasure to be talking about another solid year for the Theme Park and attraction business and a year where we've continued to improve our resilience in the face of both weather-related and macroeconomic challenges. The key message I want to convey today is that we are seeing strong trading momentum in the business. Some of this momentum is masked by the fact that we're seeing a lot of growth coming from your passes. As most of you are aware, we cannot recognize the full value of the revenue in our accounts at the time of purchase, albeit that we can see the positive impact in cash and increasingly in our deferred income balance. I'll also discuss some important leading indicators of this momentum, which can be seen in attendance as well as in their food, beverage, retail and experience revenues, which are all showing very strong growth comparative -- in comparison to the prior year and against historical benchmarks. FY '25 has been a pivotal year, and Slide 7 highlights several of our key achievements, both financial and nonfinancial. These will be explored in more detail shortly, but I'd like to call out a few highlights. Firstly, our food, beverage, retail experience, events and functions businesses all delivered strong performance and meaningfully, they all surpass FY '16 levels. Secondly, we also completed the Tiger Island protective contact project during the year. This has been a carefully planned multiyear initiative to enhance safety and welfare for both our tight handlers and our tigers. Thirdly, guest satisfaction remains a core priority, with a continued focus on safety and keeping our traction uptime high. Our uptime at 98% for the year is amongst the best in the world and is a reflection of how far we've come in the engineering and reliability functions of the organization. And importantly, we've achieved these while tightly managing costs in a high inflation environment and continuing to improve efficiency, including through our solar paywall power initiative. The installation completed this year is now Australia's largest solar system in a theme park and is expected to deliver savings and reduce our carbon emissions by around 20% on an annual basis. Turning to Slide 8. What is clearly compelling and undeniable is that Rivertown has been the highlight of the year and more than that, has been a game changer for Dreamworld. It's not just a new land. It's a complete reimagining of the Dreamworld experience. The project was delivered on time and on budget despite the very challenging construction environment here in Queensland, and that's a testament to the dedication of our teams and our external partners. Rivertown was designed as an immersive intergenerational experience, one that resonates with guests of all ages from grandparents to grandchildren, and it plays a crucial role in elevating the overall guest experience and importantly, driving visitation. Dreamword has not felt this complete in years following a long period of transformation and construction across the park. And since Rivertown's opening, we've seen strong momentum across all key revenue metrics, clearly demonstrating success in revitalizing Dreamworld's offering. Turning to Slide 9 and just a very brief recap on the Rivertown attractions. As you may recall from our half year results presentation, within Rivertown, we introduced 2 major new rides, Jungle Rush, a thrilling family coaster and [ Maricipy Motors ], a reimagined version of the classic vintage car ride here at Dreamworld. Both have been well received and are key to our strategy of broadening family appeal. Next, Slide 10 offers a glimpse into what I guess is saying at Rivertown. The response has been nothing short of phenomenal with guests praising the immersive theming, the world-class execution of the new land. And I honestly believe you can pick this up and put it into any park in the world and it would not feel out of place. Testament to our due diligence throughout the procurement and commissioning process, I'm pleased to also say that both Rivertown's jungle rush and [ Maracipy Motors ] have been opened and without any material downtime since day 1. On Slide 11, we highlight another key element of the land, James Rivertown restaurant. This beautifully themed jungle inspired dining space includes interactive animatronic displays and a fantastic menu that significantly enhances our F&B offering. It also increases our capacity to host private functions and accommodate international visitors as they return. James has been an important pillar in seeing our conferencing and events business and moreover, our Food and Beverage business at Dreamworld hitting FY '16 performance, a tremendous result given that attendance is still well below FY '16 numbers. On Slide 12, we've given some guest quotes that highlight their sentiment about James. The feedback speaks for itself guests are consistently praising the unique theming, the quality of the food, the family-friendly design and again, reinforcing the success of this addition to Rivertown. Moving to Slide 13. I'm pleased to share that once again, we've exceeded our GRI scores for the year, building on the strong performance in FY '24. While Rivertown has been a major driver, this uplift reflects the cumulative impact of all of the attractions delivered over the last 18 months, along with our continued efforts to enhance the guest experience through initiatives like the night markets and expanded in-park offerings. As you can see from the reviews on this slide, guests are consistently highlighting the things like lots to do for everyone, great guest service and excellent value, common themes and refrains that clearly demonstrate our initiatives are resonating well. And that's exactly the type of loyalty and repeat visitation that underpins our strategy. On Slide 14, we showcase some of the key events and activations we posted through the year. Our events calendar has delivered some record-breaking results with highlights including the night markets and the Dreamworld fun run, which was just held on Sunday, and I'm pleased to say with another record-breaking day. These activations were not only commercially accretive, but they also played a key role in deepening engagement with our annual passholders, in driving repeat visitation, all of which goes to another critical aspect of our strategy, which is to increase retention within the pass holder base. Turning to Slide 15. And this year was obviously not without its challenges. In March, ex-tropical Cyclone Alfred caused widespread closures, including in our properties for a little bit over a week, impacting both attendance and revenue. While our venues sustained minimal damage, the Gold Coast region suffered extensive infrastructure damage and severe beach erosion, which caused disruption to inbound tourism. And I'm sure you all saw the imagery around the country in your own TV screens. Local communities also faced extended power outages and a challenging cleanup in the days after the storm. But in the aftermath, experienced Gold Coast launched the Love GC stimulus campaign in which we participated and received very strong interest in our products. So despite the adverse weather, our Dreamworld would have delivered a very strong solid April results, demonstrating the strength of our underlying demand and the resilience of the business. Now turning to financial performance on Slide 16. What defines distinguishing and strengthens our performance this year is the continued delivery of compounding growth despite the ongoing pressure on consumers and as I just mentioned, some weather-related disruptions. Without repeating too much of what Jose mentioned earlier, I'd like to highlight just a few key points. Ticket sales rose 10.5%, but importantly, the second half growth of 15.1% was more than double the 7.1% growth in the first half of FY '25. This clearly reflects the momentum that we've seen since Rivertown's launch, and it's important to note that these numbers represent growth on growth on growth, with ticket sales in FY '24 and FY '23 finishing well up on their respective prior periods. FY '25 operating revenue grew 10.8% to $96.4 million, with growth in the second half accelerating to 11.9% compared to 9.6% in the first half despite cycling a strong prior year comp following the launch of [indiscernible] Dreamland. As we've indicated, annual pass revenue is recognized over 12 months, so it tends to lag behind ticket sales, which is a more immediate indicator performance. As at June year-end, we had $12.7 million of deferred revenue on our balance sheet, which is up 4.8% on the prior year. Attendance has increased by 11.2% year-on-year, again, with a higher growth rate due to growing momentum in the second half, notwithstanding the closures and the [ ESA ] disruptions caused by Cyclone Alfred. International visitation is improving, but it does remain well below historical levels. And it's worth noting that the Gold Coast as a destination in terms of international visitation is still down 41% on pre-COVID levels. And when you drill down into the detail, you'll find that China is down 81% compared to FY '19 levels for the destination. Consequently, our guest mix has shifted substantially from what it was pre-pandemic. Finally, EBITDA margin continues to grow, reflecting improved operating leverage. Slide 17 shows just how far we've come since FY '17. Annual pass sales continue to grow steadily and have now surpassed FY '16 levels. Annual pass sales have been a significant element of our recovery story, helping us lock in future visitation, increased in-park spend and strengthen engagement with our local market. In park per capita revenue rose year-on-year and is now 47% above FY '17. And as I've mentioned, our total food, beverage retail experience revenues in FY '25 have now exceeded FY '16 levels. Despite more repeat visitation from pass holders, which is mathematically dilutionary to our per cap spend, our total revenue per capita remained in line with FY '24 and is 45% higher than in FY '17. Slide 18 shows a very strong start to FY '26 as momentum built continues to build in the business. In July 2025, ticket sales were up 66%, partly driven by successful into financial year campaign. It's worth highlighting that July sales were the highest monthly sales we've achieved in any month in the past 10 years, surpassing FY '16 monthly sales even for any of our typically busy summer months. Visitation increased 38% year-on-year, with July attendance exceeding that of the peak summer months at Dreamworld, a very strong result and further evidence of momentum shift within the business. That strength has carried into August with attendance up 38% so far to the 19th of August, reinforcing the sustained demand that we're starting to see in the organization. Total revenue for July rose 16% over the prior period with our deferred revenue balance at the end of July now increasing above June and at some 32% higher than the prior comparative period. As I've mentioned several times, entry revenue growth tends to lag ticket sales and visitation due to the high proportion of annual pass sales. And what I think is a good indicator of actual economic activity in the business is that in-park revenue has tracked very closely to attendance. As I mentioned, attendance was up 38%, and our in-park revenue business was up 39% compared to the prior comparative period. EBITDA for July, excluding specific items, increased by 48%, the best result we've seen since July 2016. Pleasingly, SkyPine also delivered record revenue and EBITDA in July. We recently announced our partnership with Network 10 and Endemol Schein to bring Big Brother back to Dreamworld. Production will begin later this year with a brand-new house to be built on site. This isn't just a start. This is a full circle moment that strengthens Dreamworld's legacy as a destination for tourism, entertainment and immersive experiences. Guests will be able to see live glimpses of live filming in the house during their visits and critically, Dreamworld will be mentioned on air in every episode screen nightly around the country. We've also got another exciting brand collaboration underway aimed at expanding our education footprint and enhancing the guest engagement. So stay tuned for that announcement. Moving on to Slide 19. And as we've mentioned a few times now, our momentum is clearly building. Our results have strengthened significantly following the opening of Rivertown with strong sustained performances in the April and July school holiday periods. This has translated into sustained growth in Dreamworld rolling last 12 months' performance. What's especially pleasing is that we're not seeing just a growing base, but we're seeing the growth rate increasing. And that tells us that the underlying numbers are accelerating, not just holding steady. To give you a little bit of context on that, Dreamworld ticket sales for the last 12 months of July grew 17% on compared to the same period last year. That's an increase from 10.5% growth in the 12 months to June. Dreamworld attendance on a rolling 12-month basis to July 2025 increased 19% on the PCP. Accelerating from 15% growth in the last 12 months to June. Pleasingly, this growth trajectory accelerated into August with the last 12 months to week 8 of FY '26, now 21% above the PCP. And Dreamworld in-park revenue also on the last 12 months basis to July 25, grew 21% year-on-year, again, a step-up from the 17% growth in the year 12 months to June. By showing an LTM trend, by demonstrating the business is delivering consistent and repeatable performance not just benefiting from one-off short-term factors. And importantly, this momentum isn't just through a silver bullet like Rivertown alone, but it's a culmination of several years of disciplined and strategic execution. All in all, we're seeing stronger, higher guest satisfaction, a continually growing passholder base with significantly better retention, a stronger interstate performance such as for New South Wales and Victoria despite relatively limited advertising in those markets, and that is something that we will be addressing in the coming year. Looking ahead, we'll also -- we also anticipate meaningful upside as international markets continue to recover. Next on Slide 20 is an update on our next attraction. As part of our ongoing investment in the Park King Claw, a bigger, faster, higher capacity successor to the claw is on track to open by the end of this calendar year. Importantly, the King Claw will be the largest driver swing in the Southern Hemisphere setting a new benchmark for thrill rides in our region. This [ $14 million ] attraction has already generated significant positive media coverage, reinforcing our confidence that it will be another major drill card for our guests. Turning to Slide 21. Outside the core park business, we continue to progress our land development application with the relevant authorities. In early June, we met with the Deputy Premier of Queensland, who also has Carriage as Minister of Infrastructure and Planning, amongst other portfolios. In that meeting, Coast raised concerns that several of our proposed conditions from the state assessment and referral agency were unworkable and moreover were contrary to the vernacular that we were hearing out of the Christophe Leigh government, namely to get the shovels ready as the states open for business. Tourism is critical as outlined in the Destination 2045 Queensland Tourism plan and that infrastructure for the 2032 Olympic Games is an urgent priority for the state. But we were pleased that the Deputy Premier suggested that a ministerial call in may be the both expedient way to address our matters of concern, and we remain in active dialogue with his office in order to facilitate this outcome. At this stage, no statutory decision has been made to commence the call in process and should this change, Coast will obviously update the market accordingly. Turning to Slide 22. Our strong business fundamentals continue to present opportunities for value creation and remain central to the investment thesis. We have a strong balance sheet with no debt and some unique value creation levers with significant unrecognized tax losses available for future use, providing a valuable tax shield into the medium term and property values, which we believe to be significantly higher than the current carrying values. Our asset base of owned land underpins risk. And given it is located in a highly strategic growth corridor, provides real prospects for organic growth in the lead up to the 2032 Olympic Games. Between FY '17 and FY '23, our continuing operations generated cumulative losses of [ $116 million ]. Importantly, we are now seeing meaningful improvement in financial performance on the back of investment and operational excellence and are well positioned to benefit from an improving consumer environment and an international tourism recovery. We are now firmly back in profitable territory with momentum clearly building across the business. Our recent brand collaborations, including Big Brother and another iconic partnership to be announced shortly will further strengthen our positioning and broaden our reach. What guides and anchors us is our commitment to executing our strategy, delivering value for sustainable, meaningful and enduring outcomes for our guests, shareholders and other stakeholders. And I firmly believe that the business has never been in a better position to realize that value. Finally, and just as importantly, we're [indiscernible] strong people culture. Built on a shared passion for what we do, our proprietorial mindset and our relentless commitment to safety and exceptional guest services. I'd like to sincerely thank all of our team members for their ongoing dedication to their organization. And I will now hand the call back over to Jose to talk a little bit more about corporate costs and capital management.

Thanks, Greg. I'll now provide some commentary regarding the group's corporate costs, cash flows and capital management before opening up the lines for questions. Turning to Slide 24. Corporate costs remain a key focus for the group. We are committed to maintaining a lean cost base while supporting the strategic priorities of the group. And to that end, we've made further meaningful progress in the year. Corporate costs for FY '25, excluding specific items, were $4.7 million, a 25% reduction compared to the previous year and the lowest we've seen in more than a decade. Costs in the second half of FY '25 were broadly in line with the first half, reflecting a stable and sustainable cost base. As the chart shows, compared to the FY '17 peak, we have now realized almost $12 million of annualized cost savings. That's a reduction of around 72%. FY '25 corporate costs were also more than 20% below COVID impacted years of FY '20 and '21. Remembering, of course, that those years benefited from some extraordinary temporary measures, including periods of directors and staff taking pay cuts, no executive or staff bonuses, receipt of government wage subsidies and very little domestic or international travel. That being said, the current environment has brought some inflationary pressures, and we're very mindful of the need to maintain a disciplined approach, both to mitigate these pressures and to preserve the hard won savings we've achieved over recent years. Turning to Slide 25. As Gary said at the start, our balance sheet remains strong, and we closed the year with almost $34 million in cash and 0 debt. Operating pretax cash flows for the year were $9.7 million, up $13.2 million year-on-year, driven by stronger trading, higher annual pass sales for which we receive cash upfront and $5.2 million of insurance receipts relating to those FY '24 summer storms. Offsetting this slightly was a $3.2 million decline in net interest income for the year due to lower average cash balances and a slight decline in deposit rates. Capital expenditure for the year totaled $49.3 million, broadly in line with the prior period, and this was made up of $9 million in maintenance CapEx, which pleasingly was covered by our operating and interest cash flows in the period and $40 million in development CapEx, driven mainly by Rivertown costs as well as some upfront spend towards the upcoming King Claw attraction. As mentioned earlier, Rivertown was delivered on time and within budget and is already generating returns through a higher visitation, increased in-park spend and improved guest satisfaction, and our expectation is that King Claw will bring more of the same. Looking ahead, however, we do expect development CapEx to significantly moderate as we near completion of our major capital program, with anticipated development spend in FY '26 of around $8 million, predominantly related to the completion of King Claw. In terms of capital management initiatives, FY '25 saw us complete our first on-market share buyback earlier in the year and commenced a second buyback in November. And by the end of FY '25, we had completed around 80% of that second buyback, repurchasing over 34 million shares at a cost of $14.5 million. In total, $19.1 million of cash was utilized across both buybacks in FY '25, with the second buyback subsequently closed out in early FY '26 for a residual cost of $3.2 million. And finally, as mentioned at the half year, the group has established a new $10 million bank credit facility in the year. This facility was put in place to enhance the liquidity and funding flexibility of the group and has remained fully undrawn to date. That concludes the main part of our presentation, and I'll now open up the lines for Q&A.

[Operator Instructions] And the first question will come from Allan Franklin with Canaccord Genuity.

Probably something just want to step into a bit of detail on, please, just with James Rivertown, obviously great to see the positive anecdotes there. When you get into the financial side of it, if you can provide any additional detail, I would have thought there would have been a bit more pressure on cost of goods sold during the period. Yes, there was a bit of pressure year-over-year, but I thought it might have been more. Are there any other things we should be thinking about that perhaps offset some of the mix change on gross profit?

Allan, it's Greg here. Great question. Look, when we think about cost of goods, as we think about it across the commercial realm. So what I can say is that you're right. James is a business that has a higher cost of goods than some of the more traditional theme park parts of our business. So I won't disclose on the call today, the margins that we make on popcorn or churro other than to say that it is very healthy and quite distinctly different to what we would see at somewhere like James. In saying that, look, I think what we've tried to do with James is make sure we price for that. It's a higher per head spend in James and that, to some extent, offsets the higher costs that are involved in delivering that menu. And we're also really mindful about making sure that whilst it looks like a fantastic menu, it's also very strategic. We're trying to utilize products across the board there that can be used across the menu and really keep it quite simple from a back-of-house kitchen perspective. The other, I think, really important factor that we're seeing now is as the business is starting to scale, we're really seeing some opportunities to leverage that scale in terms of our supply chain. I'll give you an example with, if I think about the retail business, it wasn't that long ago. that we were buying pretty much everything from local suppliers, we just didn't have a cash position that afforded us opportunity to buy indent product. And moreover, I just didn't feel confident that we would want to go out there and spend a lot of capital -- working capital on international buyers when we just didn't have the attendance and the revenue velocity to sustain it. Now that we're starting to see that, we are actively prosecuting the case to move a lot of our buy overseas. And I can tell you that we're seeing some very, very strong performance in terms of cost of goods, particularly in the retail department, which is, to some extent, masking maybe some higher costs in James. But in saying that, I would just reinforce the fact that I think at James, we're doing a good job there, I think, as a team to manage those costs well. And you've seen the menu. It's a great menu, but at the same time, it's a little bit higher priced. And we continue to refine it, and I can say that we're about to make some additional changes to the menu in the next little while. And the key thing for us is making sure that we maintain the guest experience, and you've seen the very clear comments from our guests. They love the menu. They love the food quality. They actually think it's really good value. And what I'm mindful about is trying to maintain that but also strategically to make sure that we're continuing to improve margin in that area as well.

No, that's helpful. And I think Jose sort of partly answered my next question. But just on CapEx, the extent to which you have taken on cost per King Claw already. It was mentioned that there's $8 million of sort of development CapEx to come in F '26 and then perhaps if we can roll forward the $9 million of maintenance. Is that broadly the right framing?

Allan, yes, I think you're sort of on the money there. We're roughly about halfway through King Claw from an expense -- CapEx expense perspective. In terms of maintenance CapEx, yes, the usual run rate of the business sort of fluctuates between $5 million and $10 million. We see it as being around about $8 million next year, so all up circa $16 million of CapEx, half of which is maintenance and the other half, which is development.

Okay. Helpful. And then just last one on July, if you can just sort of help us understand any nuances in that print school holiday timing. As an example, I appreciate you called out in the financial year campaigns, which perhaps you've done before but did feel like you're pushing that fairly hard this year. Any new ones we should think about timing? Obviously, good to see that has carried through into August as well.