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.
 


CONTACT US

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

©Cybertrek 2019

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
 
Leisure Management - Rain-hit Q3 slows SeaWorld progress, but annual finances remain on track as new CEO is appointed ...
06 Dec 2019 Leisure Management: daily news and jobs
 
 
HOME
JOBS
NEWS
FEATURES
PRODUCTS
FREE DIGITAL SUBSCRIPTION
PRINT SUBSCRIPTION
ADVERTISE
CONTACT US
Sign up for FREE ezine
Latest news

12 Nov 2019

Rain-hit Q3 slows SeaWorld progress, but annual finances remain on track as new CEO is appointed
BY Andy Knaggs

Visitor numbers at SeaWorld Orlando were negatively impacted by Hurricane Dorian

Visitor numbers at SeaWorld Orlando were negatively impacted by Hurricane Dorian
photo: Shutterstock

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.



Connect with
Leisure Management
Magazine:
View issue contents
Sign up:
Instant Alerts/zines

Print edition
 

News headlines
Exhibitions begin at Zaha Hadid Architects-designed Changsha Meixihu International Culture & Arts Centre
Exhibitions begin at Zaha Hadid Architects-designed Changsha Meixihu International Culture & Arts Centre   06 Dec 2019

The first exhibition has opened at MICA, the contemporary art museum at the Changsha Meixihu International Culture & Arts Centre, which which was .... more>>
State Library Victoria reopens after Schmidt Hammer Lassen and Architectus revamp
State Library Victoria reopens after Schmidt Hammer Lassen and Architectus revamp   06 Dec 2019

State Library Victoria, in Melbourne, Australia, has reopened after being revamped by Schmidt Hammer Lassen and Australian studio Architectus to .... more>>
Soothe announces roll-out of CBD massages
Soothe announces roll-out of CBD massages   06 Dec 2019

On-demand massage service, Soothe, has rolled out CBD massages to customers in Southern California. The massage is available through the Soothe app .... more>>
V&A launches digital database for cultural heritage preservation projects
V&A launches digital database for cultural heritage preservation projects   06 Dec 2019

The Victoria and Albert Museum (V&A) is demonstrating its commitment to protecting the world's cultural heritage and supporting communities that .... more>>
Bathe under the midnight sun in Sweden’s new floating hotel and spa
Bathe under the midnight sun in Sweden’s new floating hotel and spa   06 Dec 2019

Architects Bertil Harström and Johan Krauppi have created a free-floating hotel on one of Sweden's longest rivers, with the micro-destination .... more>>
Star Wars: Rise of the Resistance opens at Disney World
Star Wars: Rise of the Resistance opens at Disney World   05 Dec 2019

Star Wars: Rise of the Resistance has opened at Disney's Hollywood Studios in Orlando, Florida. The ride, located in the Star Wars: Galaxy's Edge .... more>>
Company profile


QubicaAMF UK

QubicaAMF is the largest and most innovative bowling equipment provider with 600 employees worldwide.

View full profile>>

Catalogue gallery


Featured Supplier

13th Forum HOTelSPA unites leaders from hotel, spa and thalassotherapy

13th Forum HOTelSPA unites leaders from hotel, spa and thalassotherapy

The thirteenth Forum HOTelSPA is an exclusive international event that unites leaders from the luxury hotel and spa industries with the Thalassotherapy and Thermalism sectors. More>>




in this issue

• David Lloyd to launch ASMR experience
• Benefits of referrals 'not as large as hoped'
• Museum of the Home targets 2020 relaunch



Latest jobs

Jobs Search



Assistant General Manager - Telford
Location: Shropshire, England
Company: The Gym Group
Tour Operations Manager
Salary: Competitive
Location: Wembley, UK
Company: The Football Association
Personal Trainer / Fitness Trainer
Salary: 100% of your PT earnings
Location: Manchester, UK
Company: The Gym Group
Diary dates
Powered by leisurediary.com




07 Dec 2019

TRX Trainer Summit 2019

University of Nottingham, Nottingham, United Kingdom



Leisure Management magazine 2018 issue 1
Leisure Management
2018 issue 1

View issue contents
View on turning pages
Download PDF
  Trends: Introducing Gen Z
How will this tech-savvy, social media-driven generation affect your business? More>>
  Arts & Culture: The show must go on
When austerity hits hard, UK theatres adapt and get creative More>>


Leisure Management magazine 2016 issue 1

Leisure Management
2016 issue 1

View issue contents
View turning pages
Download PDF
  Community: Bright Hart Lane
Grant Cornwell on the Tottenham Hotspur Foundation’s community work More>>
  New opening: Future of leisure
Selby Summit focuses on activity, not sport. Is it a new era for leisure centres? More>>


Published by The Leisure Media Company Ltd Portmill House, Portmill Lane, Hitchin, Herts SG5 1DJ. Tel: +44 (0)1462 431385 | Contact us | About us | © Cybertrek Ltd