Shares of Six Flags Entertainment Corp.
SIX,
dove 4.7% in premarket trading Thursday, after the theme park operator reported third-quarter profit and revenue that missed expectations, as rising ticket prices led to a drop in attendance, which more than offset an increase in guest spending. Net income fell to $115.8 million, or $1.39 a share, from $157.2 million, or $1.83 a share, in the year-ago period. The FactSet consensus for earnings per share was $1.59. Revenue declined 20.9% to $504.8 million, well below the FactSet consensus $549.9 million. Attendance sank 33% to 8.0 million, missing the FactSet consensus of 8.7 million, hurt by an increase in ticket prices and the elimination of free tickets and heavily discounted offerings. Admissions spending per capita increased 21.7% to $34.93, below expectations of $36.70, and in-park spending per capita rose 11.6% to $26.03. “This was a year of transition for Six Flags, as we made bold changes to our business model in order to elevate the guest experience and to position the company for sustainable, long-term earnings growth,” said Chief Executive Selim Bassoul. On an encouraging note, Bassoul said attendance trends and season pass sales “significantly” accelerated in October and early November. The stock has tumbled 25.8% over the past three months through Wednesday, while the S&P 500
SPX,
has dropped 11.0%.
