‘Transitional year’: Six Flags attendance nosedives as discount offers end; revenue and profit fall

Six Flags Entertainment Corp.’s revenue and profit declined in the second quarter as attendance plunged during what its leader called a “transitional year” for the company. The company’s 27 parks in the U.S., Mexico and Canada — including Six Flags Fiesta Texas — drew 6.7 million visitors in the second quarter, down from 8.5 million in 2021 and 10.5 million in 2019. President and CEO Selim Bassoul, who took the reins at the company in November, said he is focused on increasing prices, pursuing customers who are willing to spend more at the company’s parks and upgrading amenities. “We have basically changed our strategy of creating a better guest experience by having fewer people in our parks,” he said during an earnings call Thursday with analysts.

Six Flags generated $435.4 million in the second quarter, down from $459.8 million during the same period in 2021 and $477.2 million in 2019 prior to the coronavirus pandemic. The company attributed the decrease in revenue to lower attendance and a $5 million drop in sponsorship, international agreements and accommodations. “This is a transitional year for Six Flags, as we reset the foundations of our business model to focus on delivering a premium guest experience, while at the same time, correcting for decades of heavy price discounting,” Bassoul said. Profit dropped sharply to $45.4 million, or 53 cents a share, during the three months ended July 23. That was down from $70.5 million, or 81 cents a share, a year ago and from $79.5 million, or 94 cents a share, three years ago. Fewer visitors came to Six Flags parks because the company eliminated free tickets and low margin offerings while raising prices, chief financial officer Gary Mick said. In discussing his strategy, Bassoul cited prices at Six Flags Great Adventure park in New Jersey. A season pass to the park averaged $75 in 1994, he said. Even though the company added more rides and invested in the park, that price remained flat in 2019.