Six Flags six month profits plummet
Surprising no one, Six Flags Inc. profits plummeted in the first six months of this year. Total revenues decreased this year 13&per;, dropping from $302.1 million to $345.7 million. The decrease primarily reflects a drop in attendance and guest spending. This reduction was, according to Six Flags, due to a decline in group sales. This means that companies, schools and other organizations are cutting back on large outings to Six Flags parks.
Guest spending per capita of $36.70 for the quarter was down 4% from the prior-year quarter's per capita guest spending of $38.34, reflecting decreases in admissions, food and beverages, games and merchandise. Included in the reduced guest spending is the impact of a weaker Mexican peso and Canadian dollar in the current-year quarter, affecting U.S. dollar translated results for the parks in Mexico City and Montreal. Exchange rates accounted for approximately one percentage point, or $0.54, of the guest spending per capita decline for the quarter compared to the prior year quarter.
Revenues for the quarter also were affected by a decline in sponsorship, licensing and other fees of $4.7 million compared to the prior-year quarter, driven by lower international licensing and other fees, partially offset by increased sponsorship revenue.
Commenting on the Company's performance, Mark Shapiro, President and Chief Executive Officer of Six Flags, Inc., said: "Our decline in performance is a reflection of all that surrounds Six Flags -- a severe recession, a balance sheet restructuring process, the swine flu pandemic, adverse foreign currency impact at our international parks and miserable weather, particularly at our east coast parks. The trends of our July business have improved, but nowhere near enough to put us back on pace to match last year's full-season record setting performance."