SIX - Six Flags Entertainment sinks after lower traffic leads to earnings miss

Six Flags Entertainment ( NYSE: SIX ) reported a 5% drop in revenue to $435M in Q2 . The theme park operator saw 22% lower attendance during the quarter and a $5M reduction in sponsorship, international agreements and accommodations revenue.

The decrease in attendance was net of a favorable visitation shift of approximately 200 thousand guests from first quarter to second quarter 2022 due to the later timing of the Easter holiday this year, which impacted operating calendars as a result of schools scheduling spring-break vacations later. The decrease in attendance was partially offset by guest spending per capita increasing 23% to $63.87. Admissions spending per capita was up 27% to $36.35 and in-park spending per capita rose 18% to $27.52.

A reduction in operating costs during the quarter reflected full-time headcount reductions, fewer total employee hours worked, and lower advertising costs. Those efficiency measures were offset by higher wage rates, increases in repair and maintenance, utilities, and other costs due to inflation.

Adjusted EBITDA was down 9% to $155M vs. $195M consensus.

Six Flags ( SIX ) did not issue guidance with the earnings release.

Shares of SIX fell 13.21% premarket to $22.40 after the earnings miss.

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