Recent earning calls from two of the US’s premier theme park chains hint at a growing sense of apathy within America’s world-class rollercoaster circuit.
Six Flags Entertainment (NYSE:SIX) reported second-quarter revenues of US$444 million, up 2% from US$435 million in the same period in 2022, but down 3.5% from 2021 numbers.
The company's net income for the quarter stood at US$21 million, a significant drop of 55% from the previous year's US$45 million.
Excluding non-core expenses, operating income fell 22% to US$113 million.
Earnings per share also declined by 53%, from US$0.53 in 2022 to US$0.25 in 2023, influenced in part by rising interest expenses.
Attendance did show a positive trend, with a 6% increase to 7.1 million visitors compared to 6.7 million in the second quarter of 2022, but down 16.5% from 2021.
Spending per guest witnessed a year-on-year decline. Total guest spending per capita decreased by 5% to US$60.76, with admissions spending per capita down by 7% to US$33.79 and in-park spending per capita dropping slightly by 2% to US$26.97.
The decline in spending was attributed to lower average pricing on season passes and a higher proportion of season pass attendees, who typically spend less in the park.
For the first half of 2023, Six Flags reported a net loss of US$49 million, more than double the net loss of US$20 million in the first half of 2022.
Mouse House’s falling visitor numbers: Wokeism or cost of living to blame?
Six Flags’ quarterly results reflect similarly mixed theme park financials at The Walt Disney Company (NYSE:DIS).
Though Disney’s global Parks and Experiences segment grew revenues by 13% to US$8.3 billion, US-based operating income fell 13%, though it still managed to turn a profit of US$1.4 billion.
Once again, the increase in costs was attributable to inflation, though the closure and accelerated depreciation related to the failed Star Wars: Galactic Starcruiser immersive hotel experience took a cut of the blame.
Disney did not disclose attendance numbers, but much has been said of the Mouse House’s shockingly lacklustre attendance this summer.
Florida governor Ron DeSantis would have you believe this is a backlash against Disney’s ‘woke’ agenda, though that doesn’t explain similarly poor attendance at SeaWorld and Universal Studios.
In reality, America’s rollercoaster circuit is suffering a similar fate to other discretionary sectors right now, with interest rate rises and the cost-of-living squeeze forcing families to rethink their holiday plans.
Sadly for Six Flags, the post-Covid rush of excitement when theme parks reopened in 2021 may have had the wind knocked out of it.
Shares fell 2.5% to US$22.85 in pre-market Thursday trades.