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Enterprise is often booming at theme parks over the summer season. This yr, the climate has constantly put a damper on operations.
In consequence, it is driving down site visitors at in style theme parks across the nation. Sadly, with Tropical Storm Hilary bringing heavy rain and the potential for important flooding to California and Nevada, these theme park operators may not be out of the woods simply but.
Unhealthy circumstances, from extreme rainfall, excessive temperatures and smoke deriving from the Canadian wildfires, was a “clear driver of site visitors weak point” for Six Flags Leisure, SeaWorld Leisure and Cedar Honest throughout the second quarter, based on analysis word from Macquarie analysts Paul Golding and Emma Liang.
COLORADO WILDFIRE DEVOURS NEARLY 3K ACRES AS RED-FLAG CONDITIONS CONTINUE
Throughout a current earnings name, Six Flags Leisure CEO Selim Bassoul stated the corporate misplaced “nearly 400,000 in attendance.”
Cloudy skies are seen over Six Flags Magic Mountain in Valencia, California, on Feb 23, 2023. (Hans Gutknecht / MediaNews Group / Los Angeles Day by day Information / Getty Pictures)
CFO Gary Mick added that the corporate’s attendance progress fell in need of expectations attributable to difficult climate, which consisted of “unusually excessive rainfall within the Northeast, mixed with a document warmth wave within the South.”
Mick additional famous that it is “onerous to make up for the misplaced income within the first half.” In reality, transferring ahead, Mick stated the corporate wants “to have pretty good climate … to gather what was hampered by the climate within the first half.”
FAA DELAYS FLIGHTS FOR 5 MAJOR US AIRPORTS SO FAR AS CANADA WILDFIRE SMOKE IMPACTS VISIBILITY
The corporate, based on Mick, has plans to take a look at including extra indoor venues, extra air-conditioned venues and extra air-conditioned eating places.
Bassoul additionally famous that the corporate continues to be seeing “promising tendencies regardless of climate challenges.” Go gross sales are sturdy, and attendance tendencies are enhancing, he stated.
An orca jumps out of the water throughout a present at SeaWorld Orlando on June 11, 2020. (Zack Wittman / Bloomberg / Getty Pictures)
Cedar Honest CEO Richard Zimmerman stated unprecedented rainfall and excessive temperatures had plagued its East Coast parks in addition to California parks earlier within the season.
FLIGHT CANCELLATIONS MOUNT AS TROPICAL STORM HILARY BEARS DOWN ON WEST COAST, SOUTHWEST
“The persistent rainfall meaningfully disrupted demand over the primary half of the yr in addition to gross sales of 2023 passes, which can proceed to be a headwind on attendance over the steadiness of the yr,” Zimmerman stated.
Throughout a current earnings name, Six Flags Leisure CEO Selim Bassoul stated the corporate misplaced “nearly 400,000 in attendance.” (Michael Connor for the Washington Submit / Getty Pictures)
The chief govt additionally famous that cooler-than-normal temperatures had a significant affect on attendance at 4 of the corporate’s stand-alone water parks in Texas, together with Cedar Level Shores, Knott’s Soak Metropolis and our two Schlitterbahn water parks.
He additionally stated attendance was harm at Canada’s Wonderland and several other of different U.S. parks attributable to “public well being issues over poor air high quality brought on by the continued Canadian wildfires.”
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Nonetheless, the corporate famous that “whereas demand challenges have been persistent in sure key markets, most notably in California, our stable efficiency at parks working underneath regular circumstances underscores the resilience of our enterprise mannequin,” he added.
| Ticker | Safety | Final | Change | Change % |
|---|---|---|---|---|
| SIX | SIX FLAGS ENTERTAINMENT CORP. | 21.47 | -0.28 | -1.29% |
| FUN | CEDAR FAIR | 39.44 | -0.02 | -0.05% |
| SEAS | SEAWORLD ENTERTAINMENT INC | 48.49 | -1.38 | -2.77% |
SeaWorld CEO Marc Swanson stated the mixture of unusually cold and hot climate, rain and the fallout from Canadian wildfires “impacted most of our markets throughout the quarter.”
CFO Jim Forrester stated income within the quarter fell 1.7% to $496 million when in comparison with the identical interval a yr in the past, which he attributes to the “lower in attendance of two%.”
That stated, Swanson reported that the corporate is “planning new initiatives for the steadiness of this yr and subsequent yr that may make us a good stronger, extra worthwhile and extra resilient enterprise.”
“We now have excessive confidence within the plans we’re executing on right this moment and for the longer term and in our potential to ship substantial operational and monetary enhancements that may result in significant will increase in shareholder worth,” he stated.
