Village Roadshow Sell Promo Business For $32M
Entertainment and media group, Village Roadshow, has announced the sale of its promotional solutions agency Edge Loyalty Systems for $32.3 million, with proceeds used to reduce group debt.
Shares are up over 6% to $2.57 shortly after 11:00AM AEST.
Purchased by US-based Blackhawk Network, the deal is pending approval from the Australian Foreign Investment Review Board, and is expected to complete by November 2019.
The news follows Village Roadshow’s $6.5 million full-year loss, with income down 12.7% to $1 billion.
The company claims it’s pursuing turnaround, highlighting a 37% lift in full-year EDITDA to $124.9 million.
“We are very pleased with the improved operating performance delivered so far, with our stronger balance sheet, and the return to paying dividends. With outstanding underlying businesses, and exceptional people, VRL is well placed for sustainable growth in earnings and cash flow,” claims Executive Chairman, Robert Kirby.
Village Roadshow has announced a fully franked dividend of 5c per share.
FY20 claims to have taken off well, following record July theme park attendance, offsetting softness in film distribution.