Six Flags Group Tightens the Belt

Since losses were noted for three of the past four quarters, the American group that currently runs 21 parks has started to cut costs drastically. In doing so, expenditures for this year are to be cut by 60 million USD: The planned budget slash will affect around 30 million USD in marketing expenses as well as a similar amount in HR, particularly through early retirement. “Inefficient” rides are to continue to be dismantled throughout the theme parks. At the investors’ conference in mid-January, the development of the visitor figures at the group’s parks was depicted as a disappointment. All 21 parks noted 24.9 million guests last year compared to 24.8 million in 2006. As announced, Six Flags is currently negotiating on opening theme parks in the Middle East, India and East Asia. To finance these potential deals, the sale of two or three Six Flags parks is under consideration. This year though, eight new rollercoasters are to enhance the existing range of attractions at the parks. Compared to the 52-week high/low, the Six Flags’ company share is clearly on a dive. While the 52-week high managed to at least reach EUR 4.81 on the Berlin exchange, shares are currently bobbing along at just one euro (as of 25 Jan. 2008)! It seems some announcements of success are gradually becoming extremely vital… (eap)