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Six Flags Entertainment Corporation (NYSE:SIX) saw higher attendance rise 6% in Q4 and disclosed that it has seen early success with 2024 passes.
The theme park operator reported that total revenue for quarter increased 4.6%, driven by higher attendance, partially offset by lower guest spending per capita. The increase in attendance was driven both by higher season pass and single-day ticket attendance during the Fall events line-up versus the prior year. A $0.96 decrease in guest spending per capita compared to a year ago consisted of a $1.44 decrease in admissions spending per capita and a $0.48 increase in In-park spending per capita. The decrease in guest spending per capita was driven by lower revenue from memberships beyond the initial 12-month commitment period, which is recognized evenly each month. Lower membership revenue, which includes a portion of revenue allocated to Park food, merchandise, and other, decreased admissions spending per capita by $2.48, and in-park spending per capita by $0.84, when compared to last year. That factor was partially offset by higher average ticket pricing and higher spend on food and beverage and attractions.
Adjusted EBITDA was reported at $462M for the quarter vs. $461M a year ago. EPS came in at -$0.27 vs. $0.12 a year ago.
Six Flags (SIX) said the merger with Cedar Fair (NYSE:FUN) is scheduled to close in the first half of the year, following shareholder approval, regulatory approvals, including the pending antitrust review in the United States, and the satisfaction of customary closing conditions.
On Wall Street, analyst David Katz said the firm viewed the top-line and bottom-line miss, coupled with attendance and growth in per caps up slightly as modestly negative for the shares.
Shares of Six Flags Entertainment Corporation (SIX) were down 2.44% in premarket trading to $24.00.