SeaWorld posts a deeper loss as revenue and attendance edge up
SeaWorld Entertainment Inc. saw modest increases in revenue and attendance in the first quarter, but executives downplayed future expectations, calling 2016 a “transitional year.”
The company reported Thursday that its net loss surged from the same quarter last year, and the 2.6% attendance growth doesn’t necessarily portend a company on the mend. The quarterly increase in visitors was helped by an earlier Easter holiday.
Although attendance rose at some parks, including San Diego, it declined at the Florida locations, in part because of a decrease in visitors from financially troubled Brazil and a drop in pass holders going to SeaWorld Orlando because of fewer discounts — issues that will probably persist for the rest of the year, Chief Executive Joel Manby said.
The Orlando, Fla., company’s net loss, adjusted for one-time gains and costs, was $46.9 million, or 56 cents a share; analysts had expected a steeper loss of 60 cents a share.
The company made a series of moves this year to force a turnaround in public sentiment and slumping attendance amid criticism of its treatment of killer whales. In March, It decided to stop breeding the orcas and announced that the current generation would be its last. It also forged a partnership with a longtime foe, the Humane Society, and said it would phase out its Shamu shows.
Manby said recently that it will take time before the decision to end orca breeding leads to a noticeable improvement in the company’s financials.
SeaWorld reported an overall net loss of $84 million for the first quarter, compared with $43.5 million a year earlier. Overall revenue grew to $220.2 million, up 3% from a year earlier.
The company warned that this year’s performance will be affected by a shift in the Memorial Day holiday that will in effect shorten the summer season. It projects that earnings before interest, taxes, depreciation and amortization will range from $335 million to $365 million for this year. Last year it was $361 million.
lori.weisberg@sduniontribune.com
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