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Category: Business, Economics and Finance / Disasters and Accidents

Dreamworld share price plummets in wake of tragedy

Wednesday, 26 Oct 2016 13:51:08

Dreamworld's parent company, Ardent Leisure, lost $140 million on the day of the tragedy. (AAP/Dreamworld)

Dreamworld's share price has plummeted in the wake of Tuesday's deaths at the Gold Coast theme park.

Ardent Leisure, which owns Dreamworld, lost $140 million on Tuesday afternoon as its stock plunged by almost 8 per cent from $2.55 to $2.35.

Shares slipped further on Wednesday morning's trade to $1.86 and, despite making some gains mid-morning, closed down 14.9 per cent at $2 — the lowest close since July 13, 2016, and the biggest one-day loss since it fell 19 per cent in March 2015.

Research analyst Bruce McLeary says winning back public confidence and getting the crowds back into the theme park will be a challenge.

"It will be an extremely hard thing to do and it won't be something they'll be able to do in a matter of weeks," he said.

"It will take a considerable amount of time."

Mr McLeary also said there was considerable uncertainty, with Dreamworld yet to reopen, and questions over maintenance, expenditure and legal ramifications as a result of the tragedy, which killed four people.

Board members are expected to be grilled on Thursday by shareholders at the company's annual general meeting.

"Hopefully the board will be more focused on what happened, how to fix it and how it doesn't happen again rather than focussing on how to get the share price back up to where it was.

"At the end of the day the share price will do what it does."

AustraliaPlus


 

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