Six Flags Entertainment (NYSE:SIX) reported record first-quarter revenue that beat expectations and a smaller-than-expected loss, sending its shares up by over a fifth in early trade.
The world’s largest regional theme park company and the largest operator of water parks in North America grew revenue by 3% to $142 million for the three months to April 2, 2023, above the $132.7 million Zacks consensus estimates.
It attributed the gains to higher spending per guest, boosted by higher membership admission prices and partially offset by lower attendance due to severe weather at its California and Texas parks.
Its net loss for the quarter widened to $70 million from $66 million a year earlier, resulting in a $0.84 loss per share, from $0.76 previously, but better than the $0.85 predicted by Zacks.
The company noted that operating costs increased from the prior year as it spent more on advertising.
“We are pleased to have delivered record first-quarter revenue and the second-highest first quarter Adjusted EBITDA in our company’s history, which we believe are proof points that our new strategy and our new culture are beginning to take hold,” the company’s president and CEO Selim Bassoul said in a statement.
“Looking ahead, our team is excited to launch numerous special events this summer, including Viva La Fiesta, Flavors of the World, Six Flags Fireworks Spectacular, and parades.”
By 10am ET, the company’s shares were 21% up at $27.07.
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