SeaWorld Entertainment Inc. (NYSE: SEAS)reported its second quarter financial results and topped analysts’ estimates in both revenue and earnings. Shares surged during Monday’s pre-market hours by 20.45% after the Company’s better-than-expected results.
For the second quarter, SeaWorld reported revenue of USD 391.9 Million, increasing 4.9% year over year. The Company reported a diluted EPS loss of USD 47 cents compared to an EPS loss of USD 2.77 from the same quarter last year.
SeaWorld reported that attendance increased by 0.3 Million, or 4.8% year over year. The Company says that the improved attendance result was a result of new pricing strategies, new marketing and communications initiatives and the anticipation of its new rides, attractions and events. Revenue was positively impacted due to the strong increase in attendance and in-park capita spending.
SeaWorld saw its season pass sales grow by double digits and increase in total revenue per capita driven by a 6.5% increase in in-park per capita spending.
“We are particularly pleased with our second quarter attendance growth, which more than offset the negative impacts from unfavorable weather across several of our markets in the quarter, and the earlier timing of the Easter holiday in 2018, which benefitted the first quarter at the expense of the second quarter." said John Reilly, Interim Chief Executive Officer of SeaWorld Entertainment Inc.
SeaWorld has set a goal of achieving in the range of USD 475 Million and USD 500 Million in adjusted EBITDA by the end of 2020. Marc Swanson says the Company’s focus on operational improvements, new pricing, strategies along with new attractions will be able to increase the Company’s attendance, revenue and adjusted EBITDA.
"As we enter the last few weeks of our peak summer season, we are encouraged that year-to-date results through July for attendance, season pass sales and total revenue have remained strong," continued Reilly. "We are seeing growth in attendance and revenue as a result of our new pricing strategies, enhanced communications activities and strong operational execution. In addition, our keen focus on cost savings and efficiencies is improving our margins. We are pleased with the positive guest reception of our new rides, attractions and events across our parks.”