SeaWorld’s revenue fell as attendance declined, sending the theme park and entertainment company’s shares lower.John Raoux/The Associated Press
SeaWorld Entertainment Inc. tumbled as much as 15 per cent after the company reported lower theme-park attendance in Orlando and cut its earnings outlook for the year.
Shares of SeaWorld fell as low as $12.58 (U.S.), the lowest price since private-equity owners Blackstone Group first sold shares to the public in April, 2013.
The theme-park operator welcomed 5.98 million guests in the second quarter, a 7.6-per-cent decline from a year earlier, according to a statement on Thursday. That was primarily because of a drop in Florida, which saw fewer visitors from Latin America and a downturn in business in Orlando in the second half of June.
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. The company hired a new CEO last year and said later it would phase out whale shows.
"Despite the challenges that accelerated this quarter, we are confident we are on the right path," chief executive Joel Manby said on a conference call after results were released.
SeaWorld said this year's earnings before interest, taxes, depreciation and amortization would be $310-million to $340-million. The company was previously forecasting as much as $365-million. Hotel occupancy in Orlando is down about 2 per cent this year and other theme-park operators are lowering ticket prices to boost attendance, chief financial officer Peter Crage said on a conference call after results were released.
"We have also seen theme-park competitors lifting blackout dates on their passes for the remainder of the year and some going back to non-peak pricing to attract guests," he said. SeaWorld is extending hours at its parks and offering special events to lure customers, Mr. Crage added.
Orlando, the theme-park capital of the United States, was hit by a spate of bad news in June that included the killing of 49 people in a nightclub and the death of a child in an alligator attack at Walt Disney World. Economic turmoil in Latin American economies such as Venezuela and Brazil may also be playing a role. Visitors from the region were down 40 per cent in the first half of the year, SeaWorld said.
SeaWorld cited signs that attendance is improving, with July visitors up 4 per cent from a year earlier, including Florida, where two new attractions opened in June, Crage said. SeaWorld owns 12 parks across the United States, including its namesake attractions in Florida, Texas and California.