USA: SeaWorld Entertainment’s Half-Term Results Confirm Recovery and Growth Trend
Following the pleasingly strong positive growth trend that the Orlando/FL-based SeaWorld Entertainment, Inc. operating group was able to report at the end of its 2021 Financial Year (cf. EAP News of 25 Feb 2022), this development has continued in the first half term of the current FY.
According to the recently presented results of the group of companies, whose portfolio comprises twelve leisure and water park destinations in the USA, a total of 9.7 million visitors came to the associated parks during the first six months of the current FY 2022, which corresponds to a guest number increase of 1.6 million or 20.5 per cent compared to the same period of the previous year. Compared to the visitor numbers of 2019 (before the Covid-19 outbreak), the current, post-pandemic figures represent a decline of only 0.1 million visitors or 1.4 per cent. This can also be attributed in part to declining guest numbers from abroad due to travel restrictions, who are drawn in particular by the group’s “flag ship” parks such as the SeaWorld destinations in Florida, California and Texas.
In the key financial figures, the current successful course is reflected, too: SeaWorld Entertainment achieved total revenues of USD 775.5 million (just under EUR 750 million) in the first half of FY 2022 – a new record according to the group, which corresponds to an increase of USD 163.8 million (approx. EUR 158 million) in absolute figures or 26.8 per cent compared to the result of the first half of FY 2021. If the total revenues of the first six months of FY 2019 are taken as a basis, an almost equally healthy increase of USD 148.9 million (just under EUR 144 million) or 23.8 per cent can be seen. Net income and adjusted EBITDA are also in line, with USD 107.6 million (approx. EUR 104 million) and USD 300.4 million (approx. EUR 290 million) respectively in this half of the FY – increases of 29.9 per cent and 23.1 per cent compared to the same period last year. Total per capita revenues also increased again compared to the previous year and averaged USD 80.23 (approx. EUR 77.56) in the first half of the current business year – an increase of 5.2 per cent.
“We are pleased to report our fifth consecutive quarter of record financial results. While our second quarter and first half financial results were strong, these results still do not reflect a normalized operating environment and we still have significant scope to improve our execution and our financial results. International and group related visitation is better than 2021 but not yet back to pre-COVID levels; our staffing improved over the course of the second quarter, but we are still not yet at optimized staffing levels; inflationary pressures while moderating, continue to impact costs across the enterprise. [...] While we were focused on getting all of our parks open and fully operating during the summer season for the first time since 2019, we could have had more effective cost management during the quarter. We can and will work to do a better job going forward, consistent with what we have been doing for the past several years. [...],“ comments Mark Swanson, CEO of SeaWorld Entertainment.
In addition to the resumption of all park operations, SeaWorld Group also repurchased approximately 7.1 million common shares at a total cost of approx. USD 390.1 million (approx. EUR 377.1 million) during the period April to July 2022. Furthermore, the company announced that its board of directors approved a new 250 million USD share repurchase program.
SeaWorld Entertainment, Inc, who commits itself to the protection of marine animals and nature, is also pushing ahead with investments in new park attractions. For example, the SeaWorld park in San Diego has now received the “green light” by the responsible California Coastal Commission authority, for the requested coastal development for the construction of the new Intamin family coaster, which is expected to start operation next year. (eap)
