Six Flags Reports Surprise Decline in 2016 Third Quarter Revenue
After a strong start to 2016, Six Flags has reported a surprise revenue decline, something the company blames on poor weather during what is traditionally a strong period through the summer months.
In quarter 3, which ended in September, Six Flags said it saw a 2% drop in attendance. Given the seasonal nature of its business, Six Flags typically expects the most traffic during its June and September quarters. Revenue from admissions fell 4.4%, and total guest spending also declined. Shares fell 4.9% to $48.75 in pre-market trading.
“The unusual weather patterns negatively impacted attendance during many of our peak summer days. However, when the weather was normal, we saw healthy double-digit growth in attendance,” said Six Flags CEO John Duffey.
The Texas-based company owns 18 theme parks in North America, operating rides such as the Texas SkyScreamer swing ride and the Twisted Colossus roller coaster.
Six Flags emerged from bankruptcy in 2010, and its results have generally improved in recent years as more Americans have jobs and more discretionary spending.
In all, Six Flags reported earnings of $102.5 million, or $1.09 cents a share, down from $157.3 million, or $1.64 cents a share, a year earlier. The company blamed the decline in profit on a stock-based compensation charge. Revenue fell 3% to $557.6 million. Analysts had projected a profit of $1.65 a share on $586.4 million in revenue, according to Thomson Reuters.
Six Flags Entertainment anticipates an increase in 2017 with many of the companies theme parks opening new attractions.
Six Flags Entertainment Corporation is the world’s largest regional theme park company with $1.3 billion in revenue and 18 parks across the United States, Mexico and Canada. For 55 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling water parks and unique attractions. For more information, visit the official Six Flags website by clicking here.
Stay connected with Coaster Nation!
Subscribe on YouTube!
MORE GREAT VIDEOS FROM COASTER NATION!