New rides and immersive entertainment are delivering record attendances and in-park spending for Cedar Fair, according to outgoing CEO Matt Ouimet.
The operator’s latest earnings report demonstrate another strong quarter for the business, with Q3 results showing net revenues of US$653m (€560.5m, £493m) for the quarter, reflecting increased attendance and in-park spending per guest – up one per cent and two per cent respectively.
According to Ouimett,
who will be replaced as CEO by Richard Zimmerman on 1 January, Cedar Fair expects its “FUNforward” long-term investment strategy to continue to drive adjusted earnings before interest, tax, depreciation and amortisation (EBITDA).
"Our commitment to providing a compelling experience for audiences of all ages is the foundation of our growth strategy," said Ouimet. "Because of this commitment, the underlying demand for our products remains strong.
“Guests have responded extremely well to our new rides, attractions and immersive entertainment offerings. Attendance and guest spending reached record levels through this past weekend and we expect that to continue into November and December as we expand our WinterFest celebrations to three more parks."
Net income for the quarter was US$191m (€164m, £144m) – up US$16m (€13.7m, £12m) for the same period in 2016. The two per cent increase in per-guest spend was slightly offset by a decrease in out-of-park revenues, including resort accommodations, when compared with last year's Q3.
Investments in the past year include the Mystic Timbers wooden rollercoaster at King’s Island, as well as the expansion of two separately gated waterparks at Canada’s Wonderland.
"This is an exciting and transformative period for Cedar Fair," said Zimmerman, who takes over as CEO on 1 January. "We remain focused on enhancing and broadening the overall guest experience through continued innovation and expanded entertainment offerings.”
Going forward, Cedar Fair plans to invest around 10 per cent of its revenues on new rides, attractions and park infrastructure.
“We're very excited to be a leader in an industry with the potential to grow,” said Zimmerman. “We will continue to do everything necessary to be an attractive total return investment for our unitholders for many years to come."
