The Six Flags Entertainment Corporation (NYSE: SIX), one of the world’s largest regional theme park companies and operators of waterparks in North America, today announced that the company and H Partners agreed to amend their existing Cooperation Agreement to permit H Partners to increase its beneficial ownership of Six Flags common stock to 19.9 percent, up from a cap of 14.9 percent. “H Partners has been a constructive and important partner to the company. We are pleased they continue to recognize the value potential of Six Flags and the progress management is making for our shareholders,” said Ben Baldanza, Non-Executive Chairman of the Board. “We are excited about the company’s strategy to deliver an exceptional guest experience and to drive sustainable, long-term earnings growth,” said Arik Ruchim, a Partner at H Partners and director on the Six Flags Board. “We believe that meaningful change takes time to implement, and we are encouraged by the early signs of progress on this ambitious journey.”
Just this morning, Six Flags announced its results for the third quarter of 2022. The total revenue for the third quarter of 2022 decreased 21 percent (by 133 million US dollars) compared to the third quarter of 2021, which the company said was due to lower attendance. The lower attendance was due to an increase in admission prices and the elimination of free tickets and heavily discounted product offerings, the company said. Per capita guest spending is up nearly 50 percent year-to-date compared to 2019. The company generated net income of 116 million US dollars in the third quarter of 2022, compared with 157 million US dollars in the third quarter of 2021.
Nevertheless, management remains confident. “This was a year of transition for Six Flags, as we made bold changes to our business model in order to elevate the guest experience and to position the company for sustainable, long-term earnings growth,” said Selim Bassoul, President and CEO. “While it will take time to achieve our ambitious goals, we are encouraged by our recent progress, with guest spending per capita up nearly 50 percent year-to-date relative to 2019, and with attendance trends and season pass sales significantly accelerating in October and early November. We have an exciting lineup of new rides and immersive festivals planned for 2023, and we are optimistic that our momentum will continue through the upcoming season and beyond.” (eap)