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

Thank you for standing by, and welcome to the Coast Entertainment Holdings Limited Financial Year 2026 Full Year Financial 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.

Good morning, everyone. Thank you for joining us today for the presentation of the FY '26 full year results for Coast Entertainment Holdings Limited. My name is Gary Weiss, and I'm the 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'll begin our presentation with a brief overview of the group's key highlights for the year, after which I will hand over to Jose and Greg to take you through the financial results and operating performance in more detail. Turning to Slide 3. Our key -- which highlights our key highlights for the year. As outlined in our announcement to the market on 20 July, the group is pleased to report a strong performance in FY '26 with solid growth across every key operating metric. It is worth noting upfront that FY '26 is a 53-week year, and our statutory results reflect an additional week of trading compared to the 52 weeks reported in FY '25. While this has contributed to the reported numbers, the underlying like-for-like performance across the business has been excellent, as Greg will explain shortly. In FY '26, the Theme Parks & Attractions business delivered strong growth across every key measure. Ticket sales increased 33% on the prior year, while total visitation reached 2 million guests, up 29.3%. Operating revenue also rose 20.8% to $116.5 million with the business achieving record revenues for food and beverage and retail. Notably, earnings growth once again significantly outpaced revenue growth with Theme Parks & Attractions EBITDA, excluding specific items, increasing 113.6% to $18.8 million. This highlights the continued operating leverage in the business as incremental revenue from higher visitation increasingly flows through to the bottom line. As a result of continued strong annual pass sales, deferred revenue also grew 58.7% to $20.2 million, providing a solid revenue base heading into FY '27. At a consolidated level, EBITDA, excluding specific items, increased 236.5% to $13.8 million and the group returned to net profitability, delivering a statutory net profit after tax of $6.1 million for the year. The group also generated positive net cash flows during the period, ending the year in a strong financial position with $35 million in cash, no debt and a fully undrawn bank loan facility of $20 million, providing the group with ample liquidity and funding flexibility. Beyond the operating result, FY '26 has also been a landmark year for unlocking value in the group's underlying assets. As announced on 20 July, we have now received planning approval for our 55-hectare Coomera landholding, providing greater certainty over the development potential for the site and opportunities to realize long-term value for shareholders. Following that approval, we commissioned independent valuations of both Dreamworld and SkyPoint, enabling the directors to determine fair values of $295.9 million and $51.7 million for Dreamworld and SkyPoint, respectively, both well above their current book values. Together with $136.1 million of available tax losses, providing a tax benefit of $40.8 million, most of which is not recognized on the balance sheet. These points are substantial value not yet reflected in our net assets, which Jose will expand on shortly. Looking ahead, while trading conditions remain very challenging for many in the retail and discretionary sectors, the group enters FY '27 with strong fundamentals, positive momentum and a much clearer pathway to unlocking the value of our landholdings. With that, I will hand over to Jose to take you through the group's financial results in more detail.

Thank you, Gary, and good morning, everyone. Turning to Slide 4. I'll take you through the group's consolidated financial performance for FY '26. As Gary noted, FY '26 is a 53-week year, so our statutory results reflect an additional week of trading compared to FY '25. My remarks will focus on the statutory results for the year with Greg later providing further detail on like-for-like performance. As this slide shows, FY '26 operating revenue increased 20.8% to $116.5 million, reflecting the continued positive momentum of recent years, a strong contribution from new attractions added over the last 18 months, increased marketing and promotional activity, and of course, the additional week of trading. These also drove a 29.3% increase in total visitation to our venues. What is particularly pleasing, though, is that this was achieved amid a very difficult trading environment, and once again, with a higher mix of annual pass sales for which revenue is recognized over 12 months rather than upfront. As Gary mentioned, this change in ticketing mix resulted in a 59% increase in deferred revenue compared to June 2025 and provides a solid revenue base for FY '27. Note that the group's results can be impacted from time to time by certain unrealized and non-recurring specific items. Although not significant to the group's pretax results in FY '26, it is worth remembering that the prior year benefited from $5.8 million of insurance income relating to the FY '24 summer storms. These and other specific items are set out in Appendix 2 to this presentation. Excluding the specific items, Theme Parks & Attractions EBITDA more than doubled to $18.8 million, reflecting the growth in revenue as well as improved operating leverage with higher visitation being absorbed across our largely fixed cost base. Corporate costs increased slightly to $5 million in the year, reflecting a stabilized cost base following several years of active cost reduction initiatives. As always, we continue to apply a disciplined approach to managing these costs. And at a consolidated level, EBITDA, excluding specific items, more than tripled to $13.8 million, marking the third consecutive year of positive and growing consolidated group EBITDA. Below EBITDA, depreciation increased by $1.8 million, reflecting our expanded asset base following the significant capital investment of recent years. The income tax benefit for the year of $6.2 million includes the recognition of $4.8 million of previously unrecognized deferred tax assets, together with a $1.4 million benefit for the utilization of previously unrecognized tax losses and deductible temporary differences. And as Gary mentioned, at the bottom line, the group returned to net profitability, delivering a statutory net profit after tax of $6.1 million, much improved compared to the loss of $0.1 million reported in FY '25. Moving to Slide 5, where we take a look at the group's cash flows and capital management. As you can see, the group continues to maintain a strong and flexible financial position. As at the 30th of June, we held cash balances of $35 million, an increase of $1.1 million on the prior year. This increase has been largely underpinned by strong operating cash flows, which more than doubled to $19.7 million, reflecting the stronger trading performance and higher annual pass sales for which cash is received upfront. Capital expenditure for the year totaled $16 million, comprising $6.7 million of maintenance CapEx and $9.3 million of development CapEx, primarily relating to the King Claw attraction, which launched in mid-December. Importantly, this investment was comfortably funded by the group's operating cash flows, which also covered $3.7 million of share buyback costs earlier in the year. Looking ahead, we anticipate development CapEx of approximately $17 million in FY '27. The largest component of which is expected to relate to the replacement of the Motocoaster attraction for which Greg will provide some additional color shortly. As mentioned in our half year presentation, back in December, we renewed and increased our bank loan facility to $20 million. This facility continues to provide the group with additional liquidity and funding flexibility and remains fully undrawn to date. As always, the Board continues to evaluate capital management options for the group, having regard to its operating performance, its capital position and future funding requirements, including for our land development opportunities, and of course, prevailing market conditions. Any decisions in this regard will be made with a view to maximizing long-term shareholder value. Turning to Slide 6. As Gary touched on earlier, FY '26 has been a landmark year for demonstrating the underlying value of the group's assets. As at the 30th of June, the group's reported net assets stood at $224.2 million or $0.58 per share. However, this really doesn't tell the full story. As I've mentioned in the past, the group's property, plant and equipment and intangible assets are carried in the balance sheet at historical costs, net of accumulated depreciation and impairments. This doesn't reflect the true value of these assets. Following the planning approval for our Coomera landholding, we engaged CBRE to undertake fresh independent valuations of both Dreamworld and SkyPoint. As announced on the 13th of August, having regard to these valuations, Dreamworld's fair value was determined by the directors to be $295.9 million, almost $103 million above its current book value of $193 million. That value includes an immediate uplift of $52 million relating to the surplus landholdings adjoining the theme parks and also assumes a further $38.5 million uplift potentially achievable through higher and better use of the car park area, which would require its relocation. The fair value is stated on a gross basis and excludes any potential transaction costs as well as cost of providing access to and infilling of certain developable areas, relocation of the car park and otherwise complying with development approval conditions. And I must note that the quantum of and responsibility for such costs are yet to be determined at this stage. SkyPoint's fair value was similarly assessed by CBRE at $51.7 million, $41.5 million above its book value of $10.2 million. This represents a $14.7 million uplift since its last valuation in December 2023 and reflects the strong financial performance of recent years. In addition, the group continues to hold $121.6 million in tax losses and a further $45 million in deductible temporary differences, which are not recorded in the balance sheet. Together, these represent $50 million of unrecognized deferred tax assets, which notwithstanding the conservative accounting treatment, remain fully available for future use by the group. So adjusting for these items, you can see that the group's pro forma net asset position is closer to $418.4 million or $1.08 per share. That's 87% higher than our reported net assets and well above our current share price. And finally, as recently announced, given the optionality and uplift in value unlocked by the Dreamworld planning approval, the Board has appointed Barrenjoey Advisory to lead a comprehensive review of capital and funding options to help maximize this value for shareholders, and we look forward to updating the market as that work progresses. So with that, I'll now hand over to Greg to take you through the performance of our Theme Parks & Attractions business.

Thanks, Jose, and good morning to everyone today. I have 4 objectives today that I want to get through. Firstly, to discuss the FY '26 results, the momentum that we've seen in the business and its resilience despite significant headwinds that we've discussed over recent years. Secondly, to show you exactly why we're very bullish about the opportunities to grow earnings through revenue and efficiency initiatives. Third, to illuminate some of the programs on foot that will unlock this growth. And lastly, to reiterate the investment thesis for Coast and why we believe there is still significant upside to come. Slide 8 highlights some of our key successes over the last 12 months, and I'll touch on these in detail over the -- throughout the presentation. Overall, FY '26 was a year of strong financial performance. Operationally, we continue to strengthen the Dreamworld experience by opening King Claw on time and on budget; launching Australia's first annual dining pass, achieving 98% attraction uptime; and we maintained our strong focus on safety with the introduction of Australia's first walk-through attraction metal detector. Importantly, these initiatives are translating into the guest experience with Dreamworld achieving the best guest satisfaction scores on the Gold Coast -- for all Gold Coast theme parks for the fifth consecutive year. We also continue to strengthen the Dreamworld brand through partnerships with Big Brother and Australian Geographic, and we were very proud to be appointed the official theme park partner of the Australian Olympic team, another important milestone that reflects the growing strength and the relevance of the Dreamworld brand. And beyond the operating business, finally securing the planning approval for our land development provides another important avenue to unlock long-term growth. During the year, we delivered several major launches, as shown on Slide 9. In September, we launched WILD with Australian Geographic. This is a strategic partnership with one of Australia's most trusted environmental brands, and the precinct combines immersive experiences with a strong focus on conservation whilst also supporting future growth in the education segment. In November, Big Brother returned to Dreamworld, providing significant national exposure for Dreamworld through Channel 10 and helping to drive increased interest in the park. And in December, we successfully opened King Claw. As the fastest gyro swing in the Southern Hemisphere, King Claw represents a significant step-up from its predecessor King Claw, both in scale and in the guest experience. And as you'll see in the numbers, it is already proving to be another strong draw card for Dreamworld, reinforcing our continued investment in high-quality attractions. Slide 10 speaks to just how strong visitation growth has been. We welcomed just over 2 million guests in FY '26, representing the highest attendance since FY '16. FY '26 marks the first full year contribution from Rivertown following its opening in December 2024. Together with the successful launch of King Claw in December 2025, these investments helped drive attendance growth of around on [ 10% ] on FY '25 or 27% up on a like-for-like basis. Importantly, and as shown in the chart, visitation continued to grow during the second half despite cycling strong comparative periods following the Rivertown opening. This growth is clearly attributable partly to the investment in King Claw. During the peak summer holidays, Dreamworld recorded its highest ever daily attendance, and the photograph on this slide shows the main and the overflow car parks operating at full utilization. Pleasingly, our NPS for the day was also very strong, and that proves that we can deliver a great guest experience even on our largest attendance days. Recent years growth continues to be underpinned by strong local demand, but at the same time, we continue to see significant opportunity outside our local market. Interstate visitation, particularly from New South Wales and Victoria continues to grow, reflecting targeted marketing initiatives and increasing brand awareness, but we see tremendous opportunity for further penetration into these markets over the coming year. International, as we've spoken about, also continues to recover, but still remains well below historical levels. A point to note on that would be the Gold Coast international arrivals, which are currently 63% of the pre-COVID levels. And China is only 30% of those pre-COVID levels, highlighting a meaningful medium-term growth opportunity as these international markets continue to recover. Turning to Slide 11, and some really great reading here. And as mentioned earlier, our guest satisfaction scores remain strong. And the important point here is it's not easy to do that given the substantive increases we've seen in attendance. So we're very, very pleased to see these results. We've talked a lot about what we've delivered operationally, our strategic initiatives, our new attractions and the strong guest demand. Slide 12 shows how those achievements translated into our financial performance, driving higher revenue, improved operating leverage and a significantly stronger earnings result. Jose and Gary have already covered the financials in good detail earlier. So I'm just going to touch on some of the metrics briefly. Ticket sales grew 24% on a like-for-like basis. And importantly, they're now surpassing FY '16 levels with growth across all ticket types, particularly annual passes and supported by continuous momentum from new attractions, increased marketing and promotional activity. Operating revenues reached $116.5 million, up 19% like-for-like, and we delivered record food and beverage and retail revenues, which are up 22% on a like-for-like basis. And our deferred revenue balance increased almost 60% to $20.2 million, driven by the strength of our annual pass sales and providing very good additional revenue visibility into FY '27. Importantly, the revenue growth translated into significantly stronger earnings with EBITDA, excluding specific items, more than doubling to $18.8 million on a like-for-like basis, up 118%, our highest result since FY '16, and our margin, excluding specific items, continues to improve, reflecting the operating leverage that we continue to build as the business scales. Turning to Slide 13. And you'll notice that the revenue per cap has softened to $58 from in FY '26 from $61.70 on a like-for-like basis in FY '25. I want to spend a moment explaining this because the movement is largely a function of a significant growth in visitation and the changing mix of our guests rather than a deterioration in the underlying economics. As we've discussed, our annual pass holder base has grown materially over the year. And we've talked about this a lot as well that pass revenue is recognized on a straight-line basis over the life of the pass. And so as pass holders visit more frequently, the revenue recognized per visit naturally reduces. On a like-for-like basis, visitation grew up -- grew 26.5%, outpacing revenue growth by 19% and per cap is simply the arithmetic outcome of that gap. We're also seeing a higher proportion of repeat and local visitation, and this naturally carries a lower per cap yield than a single-day interstate visit. But importantly, every time we get an annual pass holder visiting again, it creates new opportunities for in-park spending. In this context, the most important measure for us is total revenue, and that is now higher than what it was in FY '16. Slide 14 provides a simple example to illustrate the accounting effect and the mathematical dilution I've just described. A single-day ticket priced at $109 is recognized in full when the guest visits, resulting in a revenue per cap of $109 for that visit. In contrast, an annual pass priced at $169 is recognized evenly over its 12-month life which works out to be around $14 per month. But more importantly, the entire $169, so the cash is received upfront. And if that pass holder visits twice in a month, the revenue per capita equates to approximately $7 per visit for that month. So as annual pass holders represent a greater share of our visitation and as they visit more frequently, the reported revenue per cap is diluted. And importantly, that does not mean that the pass is generating less revenue. Rather, the same pass is actually being spread evenly across a number of visits and every visit we can get provides further opportunities for in-park spending and therefore higher lifetime value. This is an important dynamic because we continue to grow our annual pass holder base and build a more recurring and a more resilient revenue profile. Turning to Slide 15. Over the long term, our strategy is to grow per cap yield in a methodical and a considered way. And this slide shows how far we've come since FY '16. Ticket sales increased 33% or 24% on a like-for-like basis, again surpassing FY '16 levels. And ticket sales per caps are up 28% against FY '16, reflecting our ability to grow yield over time even in a more constrained operating environment. We're very happy with our in-park spend, seeing record in-park revenue in FY '26 and in-park revenue per cap up 62% compared to FY '16. So while revenue total per cap softened slightly against FY '25 for the reasons mentioned, it still remains 40% higher than what it was back in FY '16. Slide 16 is all about really putting FY '26 into perspective. It shows how far the business has come and how far it has evolved over the past decade. Whilst the momentum has built since FY '21, our product mix, our customer mix and the way that we recognize annual pass revenue have all changed compared to FY '16. For local guests an annual pass represents compelling value and encourages more frequent visitation. From our perspective, it's our highest price ticket. It represents that recurring relationship with our guests and provides multiple chances for additional spending throughout the year. But more importantly, it creates a renewal opportunity at the end of the pass. And this strategy clearly is delivering. As I mentioned earlier, we see further opportunity from other markets, interstate and internationally. There's also one critical difference when comparing FY '26 to FY '16. Since FY '19, annual pass revenue has been recognized on that straight-line basis over the 12-month life of the pass. But back in FY '19, it was -- sorry, back in FY '16, it was based on usage and visitation. Despite this change, we've now exceeded the FY '16 revenue levels whilst carrying $20.2 million of deferred revenue at the year-end. So when we look back at the business over the past decade, we've not only rebuilt revenue beyond FY '16 levels, but we've done so with a larger annual pass holder base, a more recurring revenue profile and further upside to come as interstate and international visitation continues to recover. Slide 17 steps back and it looks at the milestones we've achieved over the past 7 years against the backdrop of sustained external headwinds. Since FY '20, the business has navigated COVID-19, an ongoing period of high inflation and successive interest rate increases, the severe summer storms of FY '24 and Cyclone Alfred in March last year. The external environment remains challenging in the second half of FY '26 with a further 3 interest rate increases, higher fuel prices associated with the conflict in the Middle East and resultant subdued consumer confidence. We returned the Theme Park & Attractions business to positive EBITDA, excluding specific items back in FY '23 following the disruption of COVID and since then successfully opened several major attractions in a very difficult construction environment and more recently received planning approval on that landholding back in July. It is also important to recognize that the business now operates under a fundamentally different cost structure. Coast Entertainment is a stand-alone business today, whereas historically, the Theme Park business benefited from shared services infrastructure within the former Ardent Group. Despite that structural change and the external challenges we've navigated, FY '26 has delivered our highest EBITDA, excluding specific items since FY '16 and has more than doubled earnings since FY '25. Importantly, the business today is operating from a much stronger and more sustainable platform than it was previously. And I think this slide demonstrates the resilience of the operating platform we've built against all of those headwinds. And more importantly, as conditions improve and these conditions will improve, this business is incredibly well positioned to optimize performance when that happens. Turning to Slide 18 and an early look at trading in FY '27. July trading continued to be resilient. The growth is moderating and as we cycle a strong comparative period where FY '25 ticket sales were up 66% on the prior year, and we continue to navigate a challenging consumer environment. It's worth noting that July isn't directly comparable to the prior year, given FY '26 is 53-week year has shifted our trading dates out by 1 week. And that's important because under our reporting calendar, last year's end of financial year promotion was included in the July results, whereas this year it was included in the June results. With that context, total revenue increased 10% or 7% on a like-for-like basis over the prior period, with deferred revenue in July being up 27% on the prior period. And again, SkyPoint delivered its highest ever revenue result. Ticket sales were slightly below the prior comparative period on a like-for-like basis, while total visitation increased 12%, supported by the continuing success of King Claw and our larger annual pass holder base. EBITDA, excluding specific items, was up 4%, though slightly down on a like-for-like basis. And as always, current trading conditions shouldn't be taken as a guide to future performance. But that said, we remain optimistic that consumer demand will continue to strengthen as the macroeconomic conditions improve. Turning to Slide 19, and I'd like to spend a few minutes on where we see the next phases of value creation for this business. As I often say to the team and to you, there's no room for complacency. We've made significant progress, but we remain focused on continually improving the guest proposition and identifying new ways to grow the business. Slide 20 sets out the 3 key levers that underpin that growth. Firstly, growing attendance and revenue through reach, brand and experience. Simply put, bringing more people to our properties remains the foundation of our strategy. When we say through reach and brand, we mean through the quality and the innovation of our sales, our marketing and our partnerships. And our focus on experience, be it immersive new attractions or events is backed by our absolute focus on sector-leading service. And to be frank, my goal is actually to provide the best experience in Australia, and I think we're absolutely on target to do just that. Second, operational excellence through scale-driven efficiency. This means leveraging technology to improve efficiency and enhance how we operate our properties. We believe there are tangible initiatives underway that allow us to continue to create operating leverage while our attendance still scales. And we're already seeing pragmatic use cases being implemented through AI. And as we've said before, we think about technology as an enabler of our fundamentals, not just because it's fashionable. And third, transforming Dreamworld into a genuine multi-day destination. If we can unlock the latent value in our landholding in a strategic way that's complementary to our core businesses, we see substantive opportunity to grow in both revenue and in yields. This in our minds is a real unlock to materially higher guest spends than what we're seeing today. And lastly, as always, I stress that safety underpins everything we do in this portfolio. It is truly our North Star and our most fundamental value embedded at every level of the organization. Turning to Slide 21, and I want to reinforce the point I've just made in relation to growing attendance and revenue. This slide demonstrates just how much demand upside still remains. Our attendance today is still 17% below FY '16 levels, even though South East Queensland catchment has grown from 2.9 million people to 3.5 million people over the period, and Gold Coast visitation has grown from 11.2 million to 14.7 million in the same time. This means our penetration of significantly larger -- of a significantly larger market remains well below what it was a decade ago. Our view is that there are very clear pockets of demand and clear pockets of under-penetration, both inside and outside the local market. And that gives us clear confidence that there's further room to grow. As we've talked about, international visitation to the coasts also remains well below pre-COVID levels and simply regaining that ground represents meaningful sources of incremental growth. Looking ahead, the underlying market continues to expand. Greater Brisbane alone is projected to grow by 1.2 million people to almost 4 million by 2046. Together, these factors give us huge confidence that there is significant headroom to grow attendance. And as the next few slides will show, we're deploying a number of initiatives to capture that opportunity. Slide 22 showcases one of our new event formats this year, Christmas in July, a new super unique after-dark festive event complementing our daytime Winterfest offering. Across 5 magical nights Dreamworld transformed with festive light displays, live entertainment, center appearances, snow and a spectacular fireworks finale, alongside winter activities, including ice skating and marshmallow toasting. As this is a separately ticketed event, Christmas in July generated incremental revenue through ticket sales and paid in-park experience, and we saw a really strong uptake on our bundled premium offerings. I'm incredibly optimistic that we're on a winner with this one. It is, as we speak, the largest Christmas in July event on earth, and I can assure you we have much larger aspirations for it for next year. Slide 23 covers another new recurring revenue initiative. In late June, we launched Australia's first theme park annual dining pass. For 12 months, this pass allows guests to claim one meal and snack on every visit alongside a valid entry ticket. It's designed to provide excellent value for our regular guests and has seen strong take-up so far, whilst encouraging repeat visitation and converting guests who may not have otherwise purchased food and beverage in the parks. Like our annual passes, dining pass revenue is recognized on a straight-line basis over the 12-month period, and this provides another recurring and predictable revenue stream for the business. Slide 24 introduces Dreamworld Plus, our new program designed to turn our growing customer base into a higher-value, longer-term set of members. Through a rolling calendar of exclusive offers and experiences from meals and merchandise discounts to ride upgrades, Plus is designed to increase visitation frequency, grow secondary spend and ultimately support annual pass renewals. This is all about getting pass holders to derive one more visit, get extra value from their pass, something that we think is absolutely critical to retention and ultimately growing lifetime value. Slide 25 features Wahsworld, our partnership with the New Zealand Warriors, which saw Dreamworld transform for a week takeover. This included reskinning our massive highway billboard, Warriors-themed food and beverage, a fan march, a game day watch party at the Dreamworld Theater and meet and greet with Warriors legends. It is a great example of how we're using strategic partnerships to broaden our reach, engage new audiences and create new reasons to visit the park. As I'm sure many of you know, the Warriors are one of the hottest brands in the NRL today and their mantra of no retreat and no surrender is absolutely working both on and off the field. And we believe this partnership puts Dreamworld front of mind for any Kiwi looking to visit the theme parks on the next Gold Coast holiday. Slide 26 shows our expanded year-round events calendar, which includes recurring events as well as new formats and activations. We continue to refresh the calendar to keep offering relevant and engaging events, giving guests more reason to continue to visit throughout the year. Slide 27 turns to our second growth lever, which is operational excellence. This includes using intelligent forecasting to tactically extend trading hours, thereby increasing dwell time and in-park spends, rolling out more self-service kiosks and digital ordering capabilities to reduce SKUs, improve throughput and increase basket values, re-innovating in our mobile vending program to capture impulse spends in high-traffic locations and using digital tools to target offers throughout today at Dreamworld mobile site to create a more personalized guest journey. We're also using AI, robotics and automation to improve decision-making, enhance operational efficiency and to reduce our cost base, and we are already seeing tangible benefits from these initiatives. Slide 28 turns to our third growth lever and the next phase of Dreamworld's transformation. As previously announced, the Motocoaster permanently closed in February after 19 years of operation. Our new attraction will open in late 2027 as Lost Mine Mayhem, an ATV style family coaster reimagined as an immersive jungle mine adventure. The redevelopment will include new trains, upgraded control and launch systems and a lower minimum rider height, broadening the attraction's appeal to families, whilst also improving loading efficiency. Importantly, by retaining existing track infrastructure, we can deliver a significantly enhanced theming and ride experience for somewhat less than a complete replacement. Lost Mine Mayhem will beautifully complement Rivertown, creating another compelling family attraction and strengthening our overall guest experience at Dreamworld. Slide 29 brings us to the Coomera landholding itself. And as announced to the market back in -- on the 20th of July, following the ministerial calling of our development application in October 2025, the Queensland government approved the development application for our full 55-hectare site, and that delivers obviously very clearly long-term certainty over its future use and unlocking the 4 core land use precincts. Given the strategic optionality created by the approval, the Board has appointed Barrenjoey to lead a comprehensive review of capital and funding options to maximize shareholder value, and we look forward to updating the market as that process progresses. Finally, Slide 30 brings together why we believe Coast represents a compelling investment case. First, earnings are compounding. Theme Park & Attractions EBITDA, excluding specific items, reached $18.8 million, marking our fourth consecutive year of positive earnings and continued improvement year after year. Second, the business funded itself in FY '26. Operating cash flow more than doubled to $19.7 million, fully covering our operating capital expenditure and our residual $3.7 million of share buybacks. We finished the year with $35 million in cash and a fully undrawn $20 million facility. Third, we are filling existing capacity, not building it. Dreamworld accommodated 2.4 million visits in FY '16 compared to 2 million visits this year. Yet FY '26 revenue already exceeds those FY '16 levels. This means additional visitation can flow through a relatively fixed cost base and support ongoing operating leverage. Fourth, significant underpenetrated markets remain, and I feel exceptionally confident about this opportunity. Our recent growth has been driven primarily by the local market, while non-local and international visitation remains below FY '16 levels. Gold Coast international visitation is still very low, as we've talked about, providing a meaningful opportunity in terms of upside value. In my view, our product is as compelling as it has ever been, and this sets up a realistic opportunity to recapture these markets. Fifth, finally, achieving our planning approval unlocks the value of our landholding. Across the entire site, the Gateway precinct permits uses, including hotels, short-stay accommodation and entertainment, while the Town Center precinct allows for a multitude of uses, ultimately providing optionality for the future. And finally, as we've talked about a lot, our pro forma net asset value, as illustrated earlier in the presentation, is at $1.08 per share, well above our reported net assets of $0.58 per share. And Dreamworld's fair value of $295.9 million is significantly above its book value. SkyPoint fair value of $51.7 million, again, materially exceeds book value. And we have another $50 million of deferred tax assets that are not yet recognized in our balance sheet. So the message we want to leave with you today is that momentum is strong, the foundations are stronger, and we believe there is much more to come. Yes, economic headwinds and uncertainty remains. However, as I say regularly, these are episodic in nature. They're not endemic to this category. In fact, we're already seeing a structural shift towards experiences over material things. And I use this example regularly. But if you think back to the GFC, when everyone got their stimulus checks, everyone went out and bought plasma TVs. Today, if you give someone a check, they're far more likely to book a holiday or an experience. And a business like ours doesn't need to work out what the world could look like in the future to benefit from any shifts. Whatever shape the future of work takes, people with more time and money on their hands tend to spend more of it on experiences like ours, and we're already starting to see that play out. That concludes the main part of our presentation, and so we'll now open the lines up for questions.

[Operator Instructions] The first question today comes from Nick McGarrigle with Barrenjoey.

Can you talk through pricing strategies? Obviously, you've partly diluted the revenue per attendance, but it's driven some really strong attendance. But can you talk about how you think about pricing on a go-forward basis and if you feel like you found the right balance?

Look, we're happy with where it is today. Obviously, we've put a lot of capital into this business, and we see tremendous opportunity to take price over time. Our view, though, very strongly is that we've got to have the right strategy for the right time, and we're in a very difficult consumer environment at the minute. I can tell you, and I say this regularly to the market, we think we've got it right when we think about single-day and multi-day propositions. I think that our product is as good, if not better, than our competitor in that regard. But on an annual pass basis, it's a different product. And so we think about that very seriously as to how we think about pricing and promotions in that regard. You got to remember, in this business, volume is key. And so we're a fixed cost -- largely fixed cost business. The cost of bringing extra guests to the park really is negligible, but it's really disproportionate in terms of the EBITDA that it brings on for every additional guest. And you can see that clearly in our in-park revenue performance. So our view is it's largely where we would like it to be. Over time, we expect, and as I mentioned earlier, methodical increases over the period. We think the hotel in and of itself, if it goes ahead, could be a really significant unlock in that regard, but we see per caps increasing over time regardless of that. So again, we're absolutely cognizant of it. We take the time, I think, to try to illustrate some of the other drivers around the reporting of that number. We've talked a lot about the mathematical dilution, the numerator denominator issue that comes with that. But again, overall, we feel good about what we're doing there. We're always looking for ways to improve it. And again, I can tell you that it's a conversation we have 5 times a week every single morning in our sales calls, and it's absolutely top of mind. Jose, do you want to add anything to that?

I think you covered that pretty well. I mean, obviously, we mentioned increased marketing and promotional activity in the year, and that's really just a function of the current environment that we're in. We don't see that as being a permanent sort of feature. When we undertake promotions and stuff, they're always very sort of carefully considered. And as you can see in the year, the drop in per cap has been more than outweighed by the increase in volumes. And so ultimately, that strategy has been accretive to revenue. We've grown revenue. So yes, as Greg said, I think that's been the right strategy for us right now, but the plan over the long term is always to grow yields.

And maybe just...

Yes. I mean it seems to be working well because your annual pass deferred revenue balance is obviously probably one of the better indicators in terms of the way the year could look as opposed to the July result in itself.

Yes. And Nick, look, the other thing I just want to add to that, too, is that there's a couple of things that we've talked about over the last few years. This opportunity with international is significant, right? We are miles behind as a destination. This is not a Dreamworld issue. This is a destination issue. And as that international comes on, we feel really good about it. Now I've said to you before, and I've been misquoted on this by others, but I've always said, in the past, international attendance has been largely dilutive to per caps. They come in for less time, and so they get offered a cheaper ticket, a lot of competition, et cetera. What we're seeing at the moment, though, is a real change in terms of international, how it comes into the destination into our business. And so we're seeing a lot more free independent travelers as opposed to groups. And so we feel a bit more excited about international coming on at higher yields than what we used to see back in those days. Now that could change. I don't think all of the increases that we'll need to get to get back to those halcyon days will come from FIT, but it's a significant shift. If you think about the Chinese guests, for example, I mean, they are much more tech savvy than what they were back in FY '16 as we all are. And so the argument that you need to come on a tour is largely moot at this time. And so we feel good about what that looks like. And again, I just want to reinforce the point that I'm absolutely excited about, and I know some of our team are listening to this and they're sick of me saying it, but we feel so good about the opportunities that still are out there. What I want to make absolutely clear to the market is that when I look at where we are today, we are not sitting here going, gee, what else can we do to grow ticket sales? I mean we are not looking at that and saying nowhere left to get it from. In fact, we feel really good about it because we look at penetration back in FY '16, and we still have huge opportunity. Now you could say, well, what are you doing about it? Well, we're doing all sorts of things to get there. It's -- you could say, well, hey, why haven't we got it yet? Well, I think we're growing the business carefully and considerably. We've done a really good job in the local market and a reasonable job in those interstate markets. There are some macro factors in some of those interstate markets. Victoria, for example, is a challenge. Any retailer you talk to will say the same thing. But what we are absolutely clear on is that they did come to Dreamworld back in those days. We don't think there's any material shift in terms of how they feel about travel and coming to the Gold Coast. And we feel really strongly that our business is as compelling as ever, maybe even more compelling, probably more compelling. And so we feel really, really confident that we can recapture and pick up that penetration in a meaningful way. When that comes, that's not going to be annual passes. And so the recognition will come straight away, and that will certainly be reflected in the numbers. But again, I always stress the point, we don't run this business for the accountants. We run this business to make the most money we can in a very safe way. And so in our minds, if we sell on your pass, and that's the best thing we can sell, let's sell it. And we're not worried about the revenue recognition and trying to think around all of that. We want to do the best thing we can for the medium term of the business. And so if that's an annual pass, great. But what we do see is as we do more in New South Wales and Victoria, that will come on in a different way and that we'd more than likely recognize in that year.

And then maybe just as a second question on the property side, I think Jose made some comments around what goes into the $296 million. I think you've obviously got a major rise in attractions, book value written down at $67 million. In the $296 million, have you taken more of what you believe is a market value for the rides? And then is that also -- is that embedded into the $296 million?

Yes. Well, the $296 million includes all the land, buildings, rides, attractions, everything sort of on the land that we use to operate the business. It doesn't include working capital, though. But -- so obviously, the cash balance that we have is outside of that. But yes, it includes all of that. And most of the uplift on book value, I think, really comes from the land for the most part. I mean the valuation uplift resulting from that approval is I've called out the $52 million and the $38.5 million. That's close to $90 million of that increment over book value is coming from the land and the broader uses and the optionality that, that approval has brought.

And then I'm not sure if you can provide a comment on -- I think the valuation is obviously gross of any civil or preparatory works that are required to unlock some of that higher and better use like you've called out the car park. Do you have a rough sense of what that would be in terms of potentially a netting factor?

No, not at this stage. I mean I did say in my prepared remarks that we haven't -- well, the quantum of those costs and also responsibility of those costs is really yet to be determined. We're working through that at the moment. And it really depends on what we do with the land and who we might do it with as to what those costs might be and who bears those costs. So at this stage, I can't really provide a definitive answer on that.

No worries. And maybe -- I mean maybe you can't say or maybe it's changed. But I think in the development application, there was an approximate estimation on the cumulative CapEx to proceed with all of the proposed end buildings. Can you give us an update on or reiterate what that number was in terms of what the future funding requirement to proceed to actually develop the property if that was disclosed in the DA?

Yes. Look, I can't get into the specifics of the valuation of value assumptions really.

I mean in terms of like I think there was a comment around this might have been in the press, but a $200 million hotel, but the cumulative CapEx required to actually put into the site to get the buildings to an end state.

Yes. Well, yes, we haven't made any decisions in terms of what we're doing with the land just yet. So it's -- yes, until we have a clearer view, until Barrenjoey finishes their work, it's not totally clear as to what the total cost will be and the funding and capital requirements for that.

The next question comes from Allan Franklin with Canaccord Genuity.

I wouldn't mind just delving into the gross margin quickly, please. We do have 3 or 4 years' worth of history now, and it looks like 85% is a pretty steady platform to work from despite the opening of more food and bev. Just interested in understanding if that 85% is a nice base to use moving forward and just how that dining pass might actually work its way through, assuming you're obviously charging $89 and average person is coming through 3 or 4 times. Does that play around the margins at all?