Six Flags Misses Earnings, Stock Down 20%
Aug 11, 2022 By MarketDepth
Six Flags Entertainment Corporation (SIX:NYQ) reported second-quarter earnings and missed revenue estimates as attendance is down across the board. Six Flags is North America’s biggest operator of theme parks and water parks in North America.
“This is a transitional year for Six Flags, as we reset the foundations of our business model to focus on delivering a premium guest experience, while at the same time, correcting for decades of heavy price discounting. Our guest satisfaction scores are well above 2021 and our guest spending per capita has increased more than fifty percent versus pre-pandemic levels. We believe our initial progress validates the potential of our new strategy, and provides a very healthy earnings base from which we can grow.”Selim Bassoul, President and CEO
The company lowered expenses by reducing operating costs to offset the decrease in revenue. The reduced expenses came from lowering the amount of full time employees, employee hours and advertising costs. The company did also announce increased wages, repair costs, utilities and other expenses due to inflation.
Six Flags announced $45 million in second-quarter net earnings which amounted to $0.53 per share compared to previous year of $0.81 per share. This was due to lower revenue and paying of debt. With ticket sales down and expenses up the company had a net loss of $20 million in the first half of 2022.