The economic troubles in the crucial Florida market compound the challenges for Orlando-based SeaWorld, which has battled animal rights activists over the use of killer whales in its parks.
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SeaWorld, which last November unveiled a major brand overhaul to refocus itself from circus trick-style entertainment to conservation, had seen attendance drop by nearly a fifth in San Diego.
Attendance for the second quarter was down by 494,000 guests compared to the same quarter in 2015, a 7.6% drop.
The theme-park operator has navigated turbulent waters in recent years, which included the release of “Blackfish”, a 2013 documentary that claims orcas, also known as killer whales, suffer in captivity, and the December 2014 ouster of its chief executive as the company planned a restructuring. Revenues at the Texas location were up 2-percent this year, compared to being down 17-percent last year. “.We are seeing very strong indications in California that our brand issues are abating”. Visitors from the region were down 40 percent in the first half of the year, SeaWorld said. Adjusted earnings before interest, taxes, depreciation and amortization will be $310 million to $340 million, down from an earlier forecast of $335 million to $365 million.
SeaWorld (SEAS) reported in-line earnings but lower-than-expected revenue for the 2016 second-quarter as lower attendance at Florida parks weighed. Three equities research analysts have rated the stock with a sell rating, six have given a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company’s stock.
“It’s not pretty”, said James Hardiman, an analyst with Wedbush Securities. The company did not break out attendance figures for its parks but said Californian revenue was down 2%, an improvement on an 8% drop a year ago. The company hired a new chief executive officer past year and said later it would phase out whale shows. While SeaWorld San Diego has experienced drops in visitation, that trend appears to be slowing.
Things were better at SeaWorld’s 250-acre marine park in San Antonio.
Earlier this year SeaWorld announced that it would end all orca breeding and transition its shows toward more natural orca encounters. The restriction was a condition imposed on SeaWorld in October when the state agency approved the tank expansion.
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Although noting that it has seen an overall downturn in the Orlando market, SeaWorld said on Thursday that July monthly total attendance for its parks was up 4% year-over-year, due in part to the opening of two new attractions in June – Mako at SeaWorld Orlando and Cobra’s Curse at Busch Gardens Tampa Bay, Fla.
