Though fluctuation is something we've come to expect when it comes to theme parks, it looks like things at regional amusement park chain Six Flags are not going well, according to a recent earnings report. And unfortunately, Wall Street has reacted very poorly to this news, which is fueling speculation that Six Flags could once again be looking for a buyer...
Attendance and revenue are down in a BIG way
According to official filings, attendance declined year over year at Six Flags' theme parks in the fourth quarter of 2019, and revenue from park admissions fell about 5 percent year-over-year to $144.5 million during this period. In addition total revenues dropped about 3.1 percent to $261 million.
Unfortunately, even guests who do visit the park are spending less, as per capita guest spending fell $0.21 to $42.37 in 2019. Of that, $24.86 was for admissions (a $0.44 decrease from 2018) and $17.51 was for in-park spending (up $0.23 from the prior year).
The China expansion problem
Unfortunately, Six Flags' troubles don't just extend from poor performance in North America, as last year the company’s partner in China defaulted on its payment obligations and the company was forced to terminate its development agreements, resulting in a loss of about $10 Million.