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compared to the previous year. This was largely driven by two major film productions, Unbroken, directed by Angelina Jolie and San Andreas, starring Dwayne Johnson and Carla Gugino, both being shot at VRTP’s studios on the Gold Coast. 

VRL will continue executing our strategy of revitalising the Gold Coast theme parks to ensure that the parks and the product offering remain highly relevant and attractive to consumers. New attractions, together with a number of other enhancements, will further underpin strong attendances in future years. 

Wet’n’Wild Sydney is one of the world’s biggest and most unique water parks with over 40 rides incorporating the world’s best technology available. The inaugural season exceeded expectations with record attendances and exceptional sales of season passes. The park boasts extreme attractions including the Double Skycoaster, spectacular award-winning slides, a Lazy River raft ride and Australia’s largest Wave Pool. 

On 12 December 2013 Wet’n’Wild Sydney successfully opened to record crowds nine months ahead of its original schedule. This was an outstanding achievement given the extent of the wet weather and other issues faced during the construction period. VRL is extremely pleased with the overall result and the financial performance of the new park in its first season of operation, supported by the tremendous market response to the season pass program, with passes sold out in the park’s first operating season at impressive yield levels. 

The Wet’n’Wild Sydney park closed as planned at the end of the Easter school holiday period and reopened for its much anticipated second season in September 2014. Initial system and process related issues encountered in the park’s inaugural season have been rectified in the off-season and VRL is confident that this will further enhance the customer experience at this world class water park. 

## INTERNATIONAL THEME PARKS 

At the beginning of the year VRTP’s USA water parks division consisted of three water parks, Wet’n’Wild Phoenix in Arizona, Wet’n’Wild Hawaii on the island of Oahu, and the new park Wet’n’Wild Las Vegas, in Nevada, USA. In late November 2013 VRL exited its interests in Wet’n’Wild Phoenix and Wet’n’Wild Hawaii whilst continuing to hold its approximately 51% interest in Wet’n’Wild Las Vegas. 

Wet’n’Wild Las Vegas opened in late May 2013 on time and on budget and, as Nevada’s best water park, it has enjoyed strong attendance and outstanding season pass sales. The first season ended in October 2013 and reopened in mid April 2014, commencing with limited open days, ramping up to seven days from the last week in May. To kick start the calendar 2014 season, a new award-winning, extreme water slide, Tornado, was added which has proven to be a big drawcard and has assisted in differentiating the park’s superior offerings and season pass ticket sales. 

The VRL Board considered that it was an appropriate time to divest the majority of our water park interests in the United States market as the Company believed it would be difficult to achieve a significant presence in that market. The competitive pressure to acquire properties had been increasing with the upturn in the US economy and the Company considered that management time and capital could be better focussed in countries where the market is not yet mature and where higher returns are possible. 

For over 20 years VRL has been at the helm of Theme Park development and management in Australia. We are using that vast experience and VILLAGE ROADSHOW LIMITED 

success to capitalise on the enormous potential in Asia. For the past three years, VRL has been developing a major strategy for building and managing theme parks in China and South East Asia. VRL views this as one of the principal vehicles of the group’s growth and a vital part of our future. 

The formula for the success of this strategy includes leveraging VRL’s proven expertise, carefully choosing key partners, and making prudent investment decisions. This has involved considerable investment in management resources to conduct analysis, research, field trips and discussions with investors and partners. Primarily, VRL has continued its effort to build and deepen relationships, which are crucial in a region where conducting business is all about trust and respect. 

The Company has multiple dynamic opportunities under assessment with a view to develop the master plan to create world class theme parks in the most attractive locations as a major focus for the Company in the years ahead. Only the best of these opportunities will be progressed to ensure that they will lead to medium and long term profitability. 

VRL is well progressed with establishing a management team and an Asian head office in Hong Kong. This will include a mix of specialised VRTP managers, carefully sourced personnel with international theme park experience and local knowledge. Whilst there will be initial development costs, this is a critical step forward that will provide ‘on the ground’ expertise and an important presence in the region, which is an essential part in executing VRL’s strategy. 

VRL’s Consulting Service agreement with Hainan R&F Ocean Paradise Development Co. Ltd. (“R&F”), for the Hainan Island Park, ‘Ocean Paradise’ continues to move forward. Hainan Island is China’s largest island on the same latitude as Hawaii and a popular tourist destination with up to 15 to 20 million visitors each year. The mega-park will include an array of marine exhibits, thrill rides and a large water park, being operational at different stages during 2016. The project has experienced some delays in the construction of essential infrastructure, roads and primary services to the site, beyond the control of R&F. VRL is closely monitoring progress and will assess targeted opening dates during the course of the year. It is currently expected that the management fees that will be payable by R&F to VRL for operating the park are unlikely to commence until the 2016 financial year as a result of these unforeseen delays. 

VRL is also pleased to have recently formed a strategic alliance and signed a Key Term Sheet with CITIC Trust Co. Ltd., a subsidiary of CITIC Group, one of China’s largest finance conglomerates. The aim of this alliance is to leverage the respective strengths of both parties in order to make investments in theme parks and the surrounding real estate in China and South East Asia. 

In addition the Company has signed a number of Letters of Intent (“LOI”), or Memoranda of Understanding (“MOU”) or other agreements with various parties. At the date of this report these include: 

• An LOI between VRL and US based SeaWorld Parks and Entertainment Inc. to co-develop theme parks opportunities 

