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SeaWorld to cut further costs following poor first half of 2017
POSTED 08 Aug 2017 . BY Tom Anstey
SeaWorld president and CEO Joel Manby has said the company is not happy with its results for the quarter as the operator plans to further slash costs while attempting to reshape itself following several years of turmoil.

Attendance year-on-year for the quarter for SeaWorld was up by 138,000 guests, though this was as a result of the late occurring Easter break, which happened in the second quarter rather than the first.

Combined results for the first half of the year show visitor numbers down 353,000 visitors compared to the same period in 2016, which SeaWorld said was primarily concentrated at the company's SeaWorld parks in Orlando and San Diego.

"While we are making progress in key areas of our plan, we are not satisfied with our results for the quarter," said Manby. "This quarter provided us with an understanding of what is working and where we need to make adjustments.

"We are increasing our investment in national advertising to generate sufficient awareness of our brand attributes and strong new rides and attractions, developing a new national marketing campaign emphasising our distinct experiences, and reinvesting in our reputation messaging to target perceptions in key markets, particularly California. We will offset this increased advertising with additional cost reductions.”

The company says it is still on target to achieve its US$40m (€33.8m, £30.6m) net saving goal by the end of next year, with the operator “identifying additional areas for cost reduction”.

“We are committed to our capital investment strategy and will continue to invest in new rides, attractions, and festivals across our parks,” said Manby.

“At the same time, we are maintaining our rigorous cost discipline, and while we are on schedule to achieve our targeted savings by the end of 2018, we are identifying an additional US$25m (€21.2m, £19.2m) in potential savings, which we believe could be saved outright or reinvested in our marketing efforts.

In a statement, the company said the declines were driven by “the combined impact of reduced national advertising and competitive pressures”. It added that SeaWorld San Diego was further impacted by public perception issues which “resurfaced since the company reduced marketing spend on its reputation campaign”.

For the first half of the year, SeaWorld reported net losses of US$237m (€200.6m, £181.6m), though this figure includes a non-cash goodwill impairment charge – caused by a decline in the the value of its non-identifiable assets based on future earnings at SeaWorld Orlando.

Earnings before interest, tax, depreciation and amortisation (EBITDA), were US$104.2m (€88.2m, £79.9m) for the quarter, an increase of US$20.4m (€17.3m, £15.6m) on the previous year, with attendance benefiting from the shift in the timing of Easter. For the first half of the year, the company generated revenues of US$560.1m (€474m, £429.3m) – down by 5 per cent or US$31.3m (€28m, £25.4m) year-on-year, with net losses of US$66.3m (€56.2m, £50.8m).
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Jobs . News . Products . Magazine
NEWS
SeaWorld to cut further costs following poor first half of 2017
POSTED 08 Aug 2017 . BY Tom Anstey
SeaWorld president and CEO Joel Manby has said the company is not happy with its results for the quarter as the operator plans to further slash costs while attempting to reshape itself following several years of turmoil.

Attendance year-on-year for the quarter for SeaWorld was up by 138,000 guests, though this was as a result of the late occurring Easter break, which happened in the second quarter rather than the first.

Combined results for the first half of the year show visitor numbers down 353,000 visitors compared to the same period in 2016, which SeaWorld said was primarily concentrated at the company's SeaWorld parks in Orlando and San Diego.

"While we are making progress in key areas of our plan, we are not satisfied with our results for the quarter," said Manby. "This quarter provided us with an understanding of what is working and where we need to make adjustments.

"We are increasing our investment in national advertising to generate sufficient awareness of our brand attributes and strong new rides and attractions, developing a new national marketing campaign emphasising our distinct experiences, and reinvesting in our reputation messaging to target perceptions in key markets, particularly California. We will offset this increased advertising with additional cost reductions.”

The company says it is still on target to achieve its US$40m (€33.8m, £30.6m) net saving goal by the end of next year, with the operator “identifying additional areas for cost reduction”.

“We are committed to our capital investment strategy and will continue to invest in new rides, attractions, and festivals across our parks,” said Manby.

“At the same time, we are maintaining our rigorous cost discipline, and while we are on schedule to achieve our targeted savings by the end of 2018, we are identifying an additional US$25m (€21.2m, £19.2m) in potential savings, which we believe could be saved outright or reinvested in our marketing efforts.

In a statement, the company said the declines were driven by “the combined impact of reduced national advertising and competitive pressures”. It added that SeaWorld San Diego was further impacted by public perception issues which “resurfaced since the company reduced marketing spend on its reputation campaign”.

For the first half of the year, SeaWorld reported net losses of US$237m (€200.6m, £181.6m), though this figure includes a non-cash goodwill impairment charge – caused by a decline in the the value of its non-identifiable assets based on future earnings at SeaWorld Orlando.

Earnings before interest, tax, depreciation and amortisation (EBITDA), were US$104.2m (€88.2m, £79.9m) for the quarter, an increase of US$20.4m (€17.3m, £15.6m) on the previous year, with attendance benefiting from the shift in the timing of Easter. For the first half of the year, the company generated revenues of US$560.1m (€474m, £429.3m) – down by 5 per cent or US$31.3m (€28m, £25.4m) year-on-year, with net losses of US$66.3m (€56.2m, £50.8m).
RELATED STORIES
SeaWorld names Marc Swanson as CFO


SeaWorld has named Marc Swanson as its new chief financial officer with Elizabeth Gulacsy taking up Swanson’s previous position of chief accounting officer.
Last captive orca born at SeaWorld dies


The last captive orca born under SeaWorld’s care has died after contracting what was thought to be pneumonia at its park in San Antonio, Texas.
SeaWorld reveals government subpoena requests


SeaWorld is being investigated by two US federal agencies looking into public statements by executives before and during August 2014, including comments about the controversial Blackfish documentary.
SeaWorld continues conservation focus with Rescue Coaster San Antonio debut


SeaWorld’s push for fun and meaningful experiences is continuing, with the debut of Wave Breaker: The Rescue Coaster at its San Antonio theme park.
MORE NEWS
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Amos Rex, a new art museum in Helsinki, is set to open in August 2018, following the refurbishment of the Lasipalatsi building in Central Helsinki.
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Trinidad's tourism industry could be about to get a significant boost, following the launch of the Caribbean's first ever adventure theme park.
New Tate St Ives in the running for 2018 Stirling Prize
Tate St Ives is the only leisure building to find its way onto the shortlist for the 2018 RIBA Stirling Prize for the UK’s best new building.
British Museum seeks to acquire 'Trump Baby' for dissent exhibition
London's British Museum is planning to borrow the Trump Baby blimp, which flew over the capital's streets last week in protest against US President Donald Trump's visit last week.
+ More news   
LATEST JOBS
Business Turnaround Manager
The Jockey Club
Salary: Up to £55,000 (depending on experience) + pension
Job location: Newmarket, UK
Visitor Services Supervisor
Royal Botanic Gardens Kew
Salary: £24,835 per annum
Job location: Wakehurst, West Sussex
Overnight Accommodation Manager
Zoological Society of London
Salary: £31,464 per annum
Job location: London, UK
Forest Centre Operations Manager
Forestry Commission
Salary: £29,695 - £32,811
Job location: Thetford, UK
Marketing Manager
Legoland Discovery Centre
Salary: Competitive
Job location: Kansas City, Missouri, USA
Marketing Manager
Legoland Discovery Centre
Salary: Competitive
Job location: Melbourne VIC, Australia
+ More jobs  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2018

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