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Six Flags continues to show positive recovery from a COVID-affected 2020 with visitor numbers almost reaching pre-pandemic levels in its latest earnings report
Tom Anstey | Planet Attractions | 27 Oct 2021
Six Flags attendance reached 12 million people during the company’sthord quarter Credit: Zachariah Aussi on Unsplash
Six Flags welcomed more than 12 million visitors during its third quarter, with the operator reporting significantly increased revenues compared to a COVID-hit 2020.
While a decrease from pre-Covid attendance of about two million people, the visitor numbers are very promising from Six Flags in the wake of the global pandemic.
For Q3 - which ran from July 5 until October 3, attendance was at around 92% capacity. As of October 18, all capacity constraints were lifted on the company’s two Mexico properties. Of the company’s 27 attractions, only the company’s theme park in Montreal continues to have capacity restrictions.
Adding to the visitor numbers, total revenue was up US$17m (€20.1m, £12.4m) on 2019 at US$638m (€550.3m, £464.8m). Net income was slightly lower, with a decrease of US$23m (€19.9m, £16.7m) on 2019’s figures to US$157m (€135.4m, £114.4m). Adjusted earnings came in at US$279m (€240.6m, £203.7m) - a decrease of US$28m (€24.1m, £20.4m) compared to Q3 2019.
The decrease in net income was driven by higher interest expense and higher operating costs. The increase in operating costs was driven by higher wage rates and incentive costs to attract and retain team members, increased litigation reserves, increased security in the company’s parks, the timing of repair and maintenance costs due to the company’s cautious approach to spending earlier in the year, and investments in the guest experience. The cost increases were offset by cost savings measures driven by the company’s transformation plan, lower advertising costs, and the change in the company’s fiscal reporting calendar.
For comparison, in Covid-hit 2020, Q3 revenues were US$126m (€108.65m, £91.8m) while net income was a loss of US$116m (€100m, £84.5m) and adjusted earnings represented a loss of US$54m (€46.6m, £39.3m).
“We’re encouraged by the strong demand we are seeing at all our parks and by our early progress transforming our business, as shown by accelerating attendance trends, higher per capita spending, and a growing Active Pass Base,” said Mike Spanos, Six Flags’ president and CEO.
“Through a difficult operating environment, we have remained focused on our ultimate goal: to delight our guests with thrilling experiences that only Six Flags can offer.”
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