Coast Entertainment (ASX:CEH) shares surged on Monday, 20 July 2026, after the Dreamworld owner announced Queensland Government approval for its Coomera development application and released a strong preliminary FY2026 trading update.
The Coast Entertainment share price finished 15.2% higher at A$0.53. The sharp gain may reflect investor optimism about both the company’s Gold Coast landholding and the continued improvement in its theme park operations.
What Did the Queensland Government Approve?
The approval covers Coast Entertainment’s 55-hectare freehold landholding at Coomera. The site includes Dreamworld, WhiteWater World and large areas of undeveloped land beside the Pacific Motorway and Coomera Town Centre.
The approved framework creates four land-use precincts. These include the existing theme parks, a nature-based tourism area, a gateway precinct and a town-centre transition precinct.
Future uses allowed under the plan may include hotels, short-term accommodation, restaurants, entertainment venues, offices, childcare facilities, sporting facilities, eco-tourism cabins and high-density housing. The approval also keeps the site’s existing tourism development rights in place.
However, this does not mean construction will begin immediately. Coast Entertainment said it had not made any final decisions or entered into commitments about how the land would be used. Individual projects will still require planning, funding and detailed development work.
Dreamworld’s FY2026 Trading Improved
The company also reported encouraging preliminary results from its Theme Parks and Attractions business.
On a reported basis, Dreamworld ticket sales increased 33% during FY2026, while total visitation rose 29.3% and revenue grew 20.8%. FY2026 contained 53 trading weeks compared with 52 weeks in the previous year.
On a like-for-like basis, which adjusts for the extra week, ticket sales rose 24%, visitation increased 26.5% and revenue grew 19%. Coast Entertainment also expects strong FY2026 EBITDA growth at both the theme park division and group level.
These results suggest that recent investment in new attractions and guest experiences is supporting higher attendance and sales, even while the consumer spending environment remains challenging.
What Does This Mean for Investors?
The planning approval gives Coast Entertainment clearer options for creating value from land that had remained uncertain for many years.
The company has commissioned an independent valuation of the Dreamworld business and surrounding freehold land. It has also appointed Barrenjoey Advisory to review the capital and funding options available and consider how the company can use its asset base to maximise shareholder value.
No particular funding or development strategy has been selected. For now, the approval creates an opportunity rather than guaranteed earnings.
What Should Investors Watch Next?
The next major updates will be the independent valuation, the result of the capital review and any detailed development proposals.
Investors should also watch the cost and timing of future projects. The approval includes conditions covering traffic, flooding, stormwater, bushfire management, noise, vegetation clearing and koala habitat.
The 15% share-price jump shows that the market welcomed the combined update. Longer-term performance will depend on Coast Entertainment maintaining Dreamworld’s growth while turning its Coomera development options into profitable projects without placing too much pressure on its finances.
