It is all enjoyable and video games till the earnings stories come out. Photograph: Brandon Wade/Fort Value Star-Telegram/Tribune Information Service by way of Getty Photos
Arlington-based Six Flags Leisure has had a painful experience this yr. At the same time as different theme parks rebounded from the pandemic downturn, income and attendance at parks owned by Six Flags are means down in contrast with 2021, in response to the corporate’s third quarter earnings report.
Why it issues: Six Flags is without doubt one of the world’s largest theme park corporations and the most important operator of waterparks in North America. The flagship Arlington location is a staple of the North Texas leisure trade.
The large image: In August, CEO Selim Bassoul introduced a brand new technique that might elevate costs and decrease general attendance and wait occasions. That will, in principle, improve buyer satisfaction and reduce the variety of workers wanted.
By the numbers: Within the third quarter of 2022, which included the normally profitable summer time months, the corporate’s income was down 21% in contrast with the identical interval in 2021, per the earnings report.
- Attendance throughout the corporate’s parks dropped a whopping 33% in comparison with 2021.
- Common parkgoer spending went up 12%, however that did not come near offsetting the losses in attendance.
Context: Over the primary 10 months of 2022, Ohio-based Cedar Honest Leisure, which additionally operates ride-centric theme parks, introduced in almost $475 million extra in income than throughout the identical interval in 2021 and had 7.5 million extra guests — regardless of working fewer parks.
Actuality verify: Regardless of tempered expectations, Six Flags income nonetheless missed analyst estimates by 8.2%.
Sure, however: Six Flags share costs nonetheless went up after the earnings report was launched, largely as a result of the funding agency H Companions, which owned 15% of the corporate’s inventory, elevated its possession stake to twenty%.
What they’re saying: “This was a yr of transition for Six Flags, as we made daring modifications to our enterprise mannequin to be able to elevate the visitor expertise and to place the corporate for sustainable, long-term earnings progress,” Bassoul stated through the earnings name.
- “Whereas it would take time to realize our formidable targets, we’re inspired by our current progress.”
