Six Flags Entertainment Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 1970-01-01
Six Flags Entertainment Corporation Reports Second Quarter 2024 Financial Results
Six Flags Entertainment Corporation (NYSE:FUN), North America's largest regional amusement park operator, reported its financial results for the quarter ended June 30, 2024. The report provides insight into the standalone performance of legacy Cedar Fair and legacy Six Flags before their merger on July 1, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|
| Total Revenue | $1.01 billion | $945 million | +7% | $792.41 million |
| Earnings Per Share (EPS) | $1.08 | $1.04 | +3.8% | $1.12 |
| Net Income | $90 million | $75 million | +20% | N/A |
Interpretation : The combined total revenue of legacy Cedar Fair and legacy Six Flags exceeded consensus estimates by a significant margin, indicating strong operational performance. While EPS grew by 3.8%, it slightly missed the consensus estimate. The increase in net income by 20% reflects effective cost management and increased revenue generation.
Revenue Performance Across Major Segments
Legacy Cedar Fair
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Revenue | $572 million | $501 million | +14% |
| Attendance | 8.6 million guests | 7.4 million guests | +17% |
| In-park Per Capita Spend | $59.54 | $61.59 | -3% |
| Out-of-park Revenue | $73 million | $62 million | +17% |
Legacy Six Flags
| Segment | Q2 2024 | Q2 2023 | YoY Change |
|---|---|---|---|
| Net Revenue | $438 million | $444 million | -1% |
| Attendance | 6.9 million guests | 7.1 million guests | -2% |
| Total Guest Spending | $61.22 | $60.76 | +1% |
| Admission Revenue | $32.99 | $33.79 | -2% |
| In-park Per Capita Spend | $28.23 | $26.87 | +5% |
Interpretation : Legacy Cedar Fair achieved record net revenues and attendance, driven by a fiscal calendar shift and increased season pass sales. However, in-park per capita spending decreased due to planned pricing adjustments. Legacy Six Flags experienced a slight decline in net revenue and attendance, attributed to fewer operating days and weather-related disruptions. In-park spending saw an increase, reflecting effective pricing strategies.
Management Commentary
Richard A. Zimmerman, President and CEO, praised the record-setting performance of legacy Cedar Fair and acknowledged summer weather conditions as a challenge for future projections. He emphasized the successful initial merger integration and the company's focus on realizing synergies and growth opportunities.
Dividend and Share Repurchase
The company did not announce any new dividends or share repurchase programs.
Forward Guidance
No explicit forward guidance was provided, although management expressed confidence in delivering a strong full-year performance despite weather-related challenges in July.
Stock Price Movement
Following the earnings release, Six Flags Entertainment Corporation's stock experienced a positive movement, with an increase of 1.35%.
By delivering solid financial results and demonstrating effective merger integration efforts, Six Flags Entertainment Corporation is positioned for continued success, focusing on strategic initiatives to harness the full potential of the combined organization.