Rainbow's End profit takes off

The Invader ride opened at Rainbow's End in December last year and has helped increase revenue, New Zealand Experience says. Photo / Supplied

Throwing customers about in ever more imaginative ways has helped boost profit at Rainbow's End theme park.

Tony Frankham, chairman of park operator New Zealand Experience, said the new Invader ride, which opened in December last year, and initiatives to increase visits during the second half of the financial year had improved revenue and profit.

Frankham said underlying profit for the year ended June 30 was up 22 per cent to $1.1 million.

"We are continuing to develop and improve areas of the Park during this financial year, with a new food and beverage outlet having just opened and the centre court area currently undergoing a reconfiguration including a new and larger stage area," Frankham told the company's annual meeting yesterday.

Profit after tax for the 2011 financial year was expected be in a range of $1.3 million to $1.5 million as a result of improved earnings before interest, tax, depreciation and amortisation (trading profit) and a lower depreciation charge.

"I can report that we are on track to achieve this," he said. "We will review our target for the June 2011 year at the end of January after our traditional festive and summer trading periods."

The $2.5 million Invader ride opened on time and within budget, while another series of late openings with the park operating after dark would be held in the second half of the year.

Visitor numbers increased 7 per cent to 273,500 people last year, with a target for 285,000 customers in the 2011 financial year.

Meanwhile, 74.9 per cent majority shareholder, the estate of George Ryerson Gardiner, was seeking expressions of interest for its holding. Frankham said the company had been advised that the process was continuing with interested parties provided with an information memorandum and invited to lodge indicative bids.