Rain-hit Q3 slows SeaWorld progress, but annual finances remain on track as new CEO is appointed | attractionsmanagement.com news
POST YOUR JOB ONLINE
Free ezine/digital edition sign up
Jobs   News   Features   Video    Products   Profiles   Magazine   Handbook   Advertise  
NEWS
Rain-hit Q3 slows SeaWorld progress, but annual finances remain on track as new CEO is appointed
POSTED 12 Nov 2019 . BY Andy Knaggs
Visitor numbers at SeaWorld Orlando were negatively impacted by Hurricane Dorian Credit: Shutterstock
"SeaWorld has an exceptional business model and an irreplaceable set of assets"
– Sergio D. Rivera
Unfavourable weather conditions, shifts in the calendar and an overspend on certain marketing activities, have all contributed to "disappointing" Q3 financial results for SeaWorld.

However, year-to-date figures were more encouraging, with increased revenue, net income and adjusted EBITDA, and SeaWorld said it was pleased with progress towards "optimising our business and operations".

Hurricane Dorian alone caused a loss of around 90,000 visits to its Florida park, the company said, with a total aggregate of approximately 330,000 guest visits lost due to this, increased numbers of rainy days in Q3 2019 (50 per cent more than the same quarter in 2018), and a calendar shift that saw a peak weekend summer day in July moved to a weekday in September.

"Despite the weather and calendar headwinds that negatively impacted attendance this quarter, we continued to grow our total revenue per capita and we continued to make good progress on our cost efficiency initiatives," said interim CEO Marc Swanson.

"Our progress on cost reductions was masked in the quarter by a significant overspend in marketing expense of approximately US$9.5m (€8.6m, £7.4m) related to less disciplined management of certain marketing-related costs. We have since made adjustments to our process to better manage these costs and do not expect this type of overspend to repeat."

Q3 2019 saw SeaWorld receive around 8.1 million guests (down by 200,000 on Q3 2018). It generated total revenues of US$473.7m (€429.7m, £369.2m), net income of US$98m (€88.9m, £76.4m), and Adjusted EBITDA of US$206.9m (€187.7m, £161.2m). Of these only the net income was an increase on the same quarter last year, by 2.1 per cent. Other measures fell by around the same rate.

For the first nine months of the year, there were increases across revenue, net income and Adjusted EBITDA, with net income more than doubling to US$113.7m (€103.1m, £88.6m). In the first nine months of 2018, net income was affected by approximately US$34m (€30.8m, £26.5m) of pre-tax expenses associated with separation-related costs and legal settlement accruals.

Looking ahead, SeaWorld has a line-up of new rides and attractions launching next year, which Swanson said the company considers to be the strongest in its history.

He added: "We are committed to continue to refine our marketing, communications and pricing strategies to drive increased attendance and revenue and to remain focused on reducing costs and expanding our margins. As such, we have confidence in our ability to achieve the higher end of our 2020 goal of US$475m to US$500m (€430.8m to €453.6m; £370m to £390m) in Adjusted EBITDA."

SeaWorld has also announced that Sergio D. Rivera, formerly of ILG, Inc. and Starwood Hotels & Resorts Worldwide, has taken over as CEO, following the sudden departure in September this year of Gus Antorcha. The appointment sees interim CEO Marc Swanson return to his previous role as chief financial officer, and Elizabeth Castro Gulacsy step back down from CFO to her former role of chief accounting officer.

Rivera was responsible for development, sales, marketing and resort operations at ILG's Vacation Ownership Segment. Before that he was president of the Americas for Starwood. Scott Ross, chairman of SeaWorld's Board of Directors, said Rivera would bring "exceptional leadership and management skills across sales, marketing, operations, development, finance and commercial management".

Joining him on the Board is Neha Jogani Narang, who was previously director of consumer and developer marketing for Facebook. She brings a background in consumer marketing, brand, product, digital media, ecommerce and technology to the role.
RELATED STORIES
Sesame Street theme park coming to San Diego in 2021


Sesame Place, the second theme park to result from a collaboration between the makers of Sesame Street and SeaWorld Entertainment, is to open in San Diego in 2021.
Antorcha leaves SeaWorld after seven months, interim CEO in place


SeaWorld CEO Gus Antorcha has resigned from his position after just seven months in the role, with chief financial officer Marc Swanson stepping up as interim chief executive officer.
SeaWorld bounce back continues with strong first half results


SeaWorld has reported further growth in visitor numbers and revenue in its Q2 and half year results, with total revenue reaching US$626.6m (€559.43m, £514.5m) for the first six months of 2019.
Major SeaWorld shareholder defaults on payments, China agreements cancelled


SeaWorld has terminated agreements with its major shareholder for park exclusivity and design in China, citing "non-payment of undisputed amounts" owed to it.
MORE NEWS
Reykjavik city centre set to welcome ocean-side geo-thermal wellness lagoon in 2021
Attractions and hospitality brand, Pursuit, has unveiled plans to develop a premium oceanfront geothermal lagoon in Iceland.
Therme Group announces development plans to roll out wellbeing resorts across UK
Following approval to build a £250mn wellbeing resort in Manchester, Therme Group has revealed plans to develop and expand its concept in other major UK cities.
COVID-19 stimulus package – VAT cut for hospitality, companies to get apprenticeship funding
The hospitality and attractions sectors will benefit from a temporary cut to VAT as part of stimulus measures announced by chancellor Rishi Sunak.
Eureka! reveals new designs for Eureka! Mersey – construction to begin in 2021
New concept designs and visuals have been released for the Eureka! Mersey project – a £11.75m children's visitor attraction being developed in Liverpool, UK.
+ More news   
LATEST JOBS
+ More jobs  

COMPANY PROFILES
Holovis

Holovis is a privately owned company established in 2004 by CEO Stuart Hetherington. [more...]
FORREC Ltd

We create guest experiences others don’t, masterplan like no one else can, and give the world’s bi [more...]
QubicaAMF UK

QubicaAMF is the largest and most innovative bowling equipment provider with 600 employees worldwi [more...]
Vekoma Rides Manufacturing B.V.

Vekoma Rides has a large variety of coasters and attractions. [more...]
+ More profiles  
VIDEO GALLERY

Polin Waterparks & Pool Systems - Experience the experience
Have you ever wondered how the fun is created? Polin Waterparks is a global market leader in the design, manufacture and installation of waterparks and water play attractions. Find out more...
More videos:
Introducing AnimaChat! – Animalive
+ More videos  

CATALOGUE GALLERY
 

+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

08 Oct 2020

VAC 2020 VIRTUAL (The Annual National Conference of Visitor Attractions)

Online, United Kingdom
17-23 Oct 2020

World Leisure Congress 2020

Pinggu, Beijing, China
+ More diary  
LATEST ISSUES
+ View Magazine Archive

Attractions Management

2020 issue 1


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2019 issue 4


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2019 issue 3


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management

2019 issue 2


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription

Attractions Management News

06 Apr 2020 issue 153


View on turning pages
Download PDF
View archive
FREE digital subscription
Print subscription

Attractions Handbook

2019


View issue contents
View on turning pages
Download PDF
FREE digital subscription
Print subscription
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
ATTRACTIONS MANAGEMENT
ATTRACTIONS MANAGEMENT NEWS
ATTRACTIONS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

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

©Cybertrek 2020
Jobs   News   Products   Magazine
NEWS
Rain-hit Q3 slows SeaWorld progress, but annual finances remain on track as new CEO is appointed
POSTED 12 Nov 2019 . BY Andy Knaggs
Visitor numbers at SeaWorld Orlando were negatively impacted by Hurricane Dorian Credit: Shutterstock
SeaWorld has an exceptional business model and an irreplaceable set of assets
– Sergio D. Rivera
Unfavourable weather conditions, shifts in the calendar and an overspend on certain marketing activities, have all contributed to "disappointing" Q3 financial results for SeaWorld.

However, year-to-date figures were more encouraging, with increased revenue, net income and adjusted EBITDA, and SeaWorld said it was pleased with progress towards "optimising our business and operations".

Hurricane Dorian alone caused a loss of around 90,000 visits to its Florida park, the company said, with a total aggregate of approximately 330,000 guest visits lost due to this, increased numbers of rainy days in Q3 2019 (50 per cent more than the same quarter in 2018), and a calendar shift that saw a peak weekend summer day in July moved to a weekday in September.

"Despite the weather and calendar headwinds that negatively impacted attendance this quarter, we continued to grow our total revenue per capita and we continued to make good progress on our cost efficiency initiatives," said interim CEO Marc Swanson.

"Our progress on cost reductions was masked in the quarter by a significant overspend in marketing expense of approximately US$9.5m (€8.6m, £7.4m) related to less disciplined management of certain marketing-related costs. We have since made adjustments to our process to better manage these costs and do not expect this type of overspend to repeat."

Q3 2019 saw SeaWorld receive around 8.1 million guests (down by 200,000 on Q3 2018). It generated total revenues of US$473.7m (€429.7m, £369.2m), net income of US$98m (€88.9m, £76.4m), and Adjusted EBITDA of US$206.9m (€187.7m, £161.2m). Of these only the net income was an increase on the same quarter last year, by 2.1 per cent. Other measures fell by around the same rate.

For the first nine months of the year, there were increases across revenue, net income and Adjusted EBITDA, with net income more than doubling to US$113.7m (€103.1m, £88.6m). In the first nine months of 2018, net income was affected by approximately US$34m (€30.8m, £26.5m) of pre-tax expenses associated with separation-related costs and legal settlement accruals.

Looking ahead, SeaWorld has a line-up of new rides and attractions launching next year, which Swanson said the company considers to be the strongest in its history.

He added: "We are committed to continue to refine our marketing, communications and pricing strategies to drive increased attendance and revenue and to remain focused on reducing costs and expanding our margins. As such, we have confidence in our ability to achieve the higher end of our 2020 goal of US$475m to US$500m (€430.8m to €453.6m; £370m to £390m) in Adjusted EBITDA."

SeaWorld has also announced that Sergio D. Rivera, formerly of ILG, Inc. and Starwood Hotels & Resorts Worldwide, has taken over as CEO, following the sudden departure in September this year of Gus Antorcha. The appointment sees interim CEO Marc Swanson return to his previous role as chief financial officer, and Elizabeth Castro Gulacsy step back down from CFO to her former role of chief accounting officer.

Rivera was responsible for development, sales, marketing and resort operations at ILG's Vacation Ownership Segment. Before that he was president of the Americas for Starwood. Scott Ross, chairman of SeaWorld's Board of Directors, said Rivera would bring "exceptional leadership and management skills across sales, marketing, operations, development, finance and commercial management".

Joining him on the Board is Neha Jogani Narang, who was previously director of consumer and developer marketing for Facebook. She brings a background in consumer marketing, brand, product, digital media, ecommerce and technology to the role.
RELATED STORIES
Sesame Street theme park coming to San Diego in 2021


Sesame Place, the second theme park to result from a collaboration between the makers of Sesame Street and SeaWorld Entertainment, is to open in San Diego in 2021.
Antorcha leaves SeaWorld after seven months, interim CEO in place


SeaWorld CEO Gus Antorcha has resigned from his position after just seven months in the role, with chief financial officer Marc Swanson stepping up as interim chief executive officer.
SeaWorld bounce back continues with strong first half results


SeaWorld has reported further growth in visitor numbers and revenue in its Q2 and half year results, with total revenue reaching US$626.6m (€559.43m, £514.5m) for the first six months of 2019.
Major SeaWorld shareholder defaults on payments, China agreements cancelled


SeaWorld has terminated agreements with its major shareholder for park exclusivity and design in China, citing "non-payment of undisputed amounts" owed to it.
MORE NEWS
Reykjavik city centre set to welcome ocean-side geo-thermal wellness lagoon in 2021
Attractions and hospitality brand, Pursuit, has unveiled plans to develop a premium oceanfront geothermal lagoon in Iceland.
Therme Group announces development plans to roll out wellbeing resorts across UK
Following approval to build a £250mn wellbeing resort in Manchester, Therme Group has revealed plans to develop and expand its concept in other major UK cities.
COVID-19 stimulus package – VAT cut for hospitality, companies to get apprenticeship funding
The hospitality and attractions sectors will benefit from a temporary cut to VAT as part of stimulus measures announced by chancellor Rishi Sunak.
Eureka! reveals new designs for Eureka! Mersey – construction to begin in 2021
New concept designs and visuals have been released for the Eureka! Mersey project – a £11.75m children's visitor attraction being developed in Liverpool, UK.
Thermal project set to ‘redefine city wellbeing’ on track for 2023 opening
Global wellbeing organisation, Therme Group, has confirmed its 28-acre wellbeing project in the UK is on track to begin construction.
BIG creates spiral museum for Swiss watchmaker Audemars Piguet
Swiss luxury watchmaker Audemars Piguet will open a museum celebrating the company history next month (June 2020).
+ More news   
 
COMPANY PROFILES
Holovis

Holovis is a privately owned company established in 2004 by CEO Stuart Hetherington. [more...]
FORREC Ltd

We create guest experiences others don’t, masterplan like no one else can, and give the world’s bi [more...]
QubicaAMF UK

QubicaAMF is the largest and most innovative bowling equipment provider with 600 employees worldwi [more...]
Vekoma Rides Manufacturing B.V.

Vekoma Rides has a large variety of coasters and attractions. [more...]
+ More profiles  
VIDEO GALLERY

Polin Waterparks & Pool Systems - Experience the experience
Have you ever wondered how the fun is created? Polin Waterparks is a global market leader in the design, manufacture and installation of waterparks and water play attractions. Find out more...
More videos:
Introducing AnimaChat! – Animalive
+ More videos  

CATALOGUE GALLERY
+ More catalogues  
DIRECTORY
+ More directory  
DIARY

 

08 Oct 2020

VAC 2020 VIRTUAL (The Annual National Conference of Visitor Attractions)

Online, United Kingdom
17-23 Oct 2020

World Leisure Congress 2020

Pinggu, Beijing, China
+ More diary  
 


ADVERTISE . CONTACT US

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

©Cybertrek 2020

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
ATTRACTIONS MANAGEMENT NEWS
ATTRACTIONS HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS