SeaWorld’s stock was underwater in pre-market trading after another disappointing quarter from the theme parks operator.
SeaWorld Entertainment Inc (NYSE:SEAS) saw total revenues in the third quarter of 2017 dive to US$437.7mln from US$485.3mln the year before.
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The net loss narrowed to US$55.0mln, equal to a loss of 64 US cents a share, from US$65.7mln (77 US cents) the year before, as cost-cutting measures kicked in.
The company has been laying off staff as attendance levels at the group’s attractions continue to drop off, especially at the parks in Orlando and San Diego.
Attendance in the third quarter fell by around 732,000 from the year before, though to be fair, it was a quarter that was affected by hurricanes Irma and Harvey.
With less than 15% of the company's expected 2017 attendance remaining in November and December, the company has narrowed its 2017 adjusted underlying earnings (EBITDA) guidance range to US$280mln - US$295mln, primarily as a result of the weather impacts.
"More recently, attendance trends have improved since we launched our Fall and Halloween events in late September. We remain confident in our plan to drive growth over time by addressing reputational challenges and creating fun and meaningful guest experiences, while maintaining a sharp focus on financial discipline,” said Joel Manby, president and chief executive officer of SeaWorld.
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Animal rights groups have got their teeth into SeaWorld and their message about the intrinsically cruel nature of places like SeaWorld seems to be having an effect on attendances.
SeaWorld announced last year it would not breed killer whales in captivity and would stop using them in its shows.
Shares were trading 3.5% lower at US$11.19 in pre-market trading.