Fund Manager Summary on Coast Entertainment Holdings Ltd (ASX:CEH)
In December 2025, Spheria Asset Management commented that Coast Entertainment Holdings Ltd (ASX:CEH) was exhibiting strong operational momentum—with ticket sales up 54%, visitation up 35% and in‑park spend up 25% in the first 17 weeks of FY26—driving about 20% revenue growth and outsized earnings via operating leverage while a Queensland Deputy Premier 'call‑in' on development assessment accelerates the pathway to unlock 10–15 hectares within the broader ~55‑ha precinct as a potential valuation catalyst. Taken together, the commentary frames the investment thesis around two actionable themes: a structural recovery in core park economics that supports margin expansion if elevated visitation and spend persist and fixed‑cost leverage continues, and high‑upside land optionality from sale or redevelopment that could materially re‑rate the business once approvals and execution progress; key risks include execution and timing of land monetisation, regulatory and planning uncertainty despite the call‑in, the need to sustain strong guest demand and manage operating cost pressures, and potential near‑term share price volatility as initiatives crystallise, implying strategic priorities of sustaining operational momentum, accelerating consenting and stakeholder engagement for land initiatives, and preserving balance‑sheet flexibility to capture redevelopment or sale opportunities.
Commentary From The Managers
There are 2 insights from 1 fund managers regarding their investment in Coast Entertainment Holdings Ltd (ASX:CEH) available on Thesis Tracker.
Unlock Updates With ThesisTracker Pro
Don’t let information asymmetry undermine your investment returns. Join other engaged investors on ThesisTracker Pro.
Updates are made available to members within 12 hours of being released. The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Spheria Asset Management
31 Dec 2025
$0.55
Summary
- Spheria Asset Management believes Coast Entertainment Holdings is on a sustainable recovery trajectory and continues to hold because operational momentum, high operating leverage and a potentially transformational land unlock materially improve earnings prospects and valuation upside
- Monthly performance: delivered a strong +12% return in the month, continuing to outperform the market; momentum from the late‑October trading update carried through the November AGM
- FY26 (first 17 weeks to late Oct 2025): Ticket sales +54%, Visitation +35%, In‑park spend +25%
- Top‑line and earnings leverage: these trends drove +20% revenue growth, with earnings expanding faster due to high operating leverage from a fixed‑cost base
- Land catalyst: Queensland Deputy Premier issued a ‘call‑in’ notice (Sept 2025) to take direct control of the development application assessment, accelerating the pathway to unlock 10–15 hectares of surplus land within the broader ~55‑ha precinct via sale or redevelopment
- Valuation impact: unlocking or redeveloping surplus land is a major potential valuation catalyst beyond the core business recovery
- Execution and outlook: CEH continues to show robust operational improvement and clear progress on high‑upside land initiatives; Spheria remains positive on the outlook while monitoring execution risk
Spheria Asset Management
30 Sept 2024
$0.45
Summary
- Coast Entertainment Holdings (CEH.ASX) share price decreased 15% without specific company news.
- Weak consumer sentiment may affect visitation and ticket sales.
- FY24 results showed total theme park visitation increased by 14% (ticket sales +3.1%), the highest since FY16.
- Profitability improving due to higher revenues and 22% reduction in corporate costs.
- Positive outlook with revenue growth of 10% in July 2024 compared to the prior period.
- Company has significant asset value: $88m net cash, $57m tax losses, $25m excess Skypoint value, 20 hectares of land potentially worth up to $100m.
- Current market cap below $200m despite tangible asset valuation of $156m.
- Little value attributed to theme parks, which are approaching profitability (EBITA) and generating positive free cash flow.
- Spheria Asset Management continues to hold because of the underlying asset value and improving profitability metrics.
The completeness, accuracy or current status of the investments referenced are not guaranteed.
Frequently Asked Questions
Who is investing in Coast Entertainment Holdings Ltd (ASX:CEH)?
Fund managers including Spheria Asset Management have invested in Coast Entertainment Holdings Ltd (ASX:CEH).
Why do fund managers invest in Coast Entertainment Holdings Ltd?
Fund managers invest in Coast Entertainment Holdings Ltd due to its strong asset base and positive growth outlook. The company recently reported a 14% increase in theme park visitation, signaling recovery post-pandemic. Despite recent share price declines, it holds significant assets, including $88 million in net cash and valuable land holdings. With corporate costs down and profitability trends improving, the risk/reward profile appears favorable. The market capitalization relative to tangible assets suggests potential undervaluation, making it an attractive proposition for investors.
What happened to Coast Entertainment Holdings Ltd (ASX:CEH)?
There have been no recent updates from fund managers regarding Coast Entertainment Holdings Ltd although fund managers including Spheria Asset Management have previously commented.
What is the short interest in Coast Entertainment Holdings Ltd (ASX:CEH)?
The short interest in Coast Entertainment Holdings Ltd (ASX:CEH) is 0.52% which makes it the 272nd most shorted stock on the ASX. Of the 388.6M shares that Coast Entertainment Holdings Ltd has on issue, 2.0M have been sold short.
What does Coast Entertainment Holdings Ltd (ASX:CEH) do?
Coast Entertainment Holdings Ltd. engages in the investment and operation of leisure and entertainment businesses. Its brands include Dreaamworld, WhiteWater World, Main Event Entertainment, SkyPoint, and SkyPoint Climb. The firm operates through the Theme Parks and Attractions, and Corporate segments. The Theme Parks and Attraction segment comprises Dreamworld and WhiteWater World in Coomera, Queensland and the SkyPoint observation deck and climb in Surfers Paradise, Queensland. The company was founded on June 11, 1998 and is headquartered in North Sydney, Australia.