Posted Tuesday, November 9, 2004 8:39 AM | Contributed by Jeff
Revenues for the 2004 third quarter were $527.4 million, compared to $545.2 million for the comparable quarter of 2003. The 2004 performance reflects a decrease in attendance of 0.9 million, or 4.8%, offset in part by a 1.6% increase in total revenue per capita.
Read the press release from Six Flags (PDF).
Where was all the 'suicidal' ranting when KBF was offering admission AND a full BBQ dinner for $25 or so?
1) One analyst noted that once again SFI is predicting a big upswing in business next year, and asked "with all due respect, you've predicted that for the last three years, what's different about 2005?" The answer was they think that 2005 will be better due to general improvements in the economy, and the cap ex projects (particularly in NJ and Chicago).
2) The next analyst followed up with a question about the Chicago waterpark, and wanted to know why they were so confident about it being a major contributer to 2005 when weather has been such a negative the past two years. (The idea being that nothing is more weather sensitive than a water park...) Their answer to this one kind of confused me...all the water parks have continued to be strong performers, even in cold, rainy weather (?), and a third year in a row of bad weather was unlikely. (Ok....)
3) Finally, someone asked him about Dan Snyder's "intentions." Kieran Burke said that members of the board and executive management met with him twice in September, and his suggestions "while appreciated", were determined they would not improve shareholder value. Beyond that we couldn't comment on his "intentions." This was the funniest part of the call!
In comparison, CP is sandwiched between the poorest city in America (Cleveland) and the third- or fourth-poorest (Detroit). The market is mature and the '-est' strategy is getting long in the tooth.
Sure, they're not going downhill and they've landed some great chainwide counterpunches, too...but make no mistake, '05 is the year of the Flag.
But anyway, the SFMM limited time offer really isn't that crazy. Think about it--who's gonna drive out to SFMM on an autumn/winter weekend when there's a B&M as good as any at the Mountain right in town? It's maybe $10 less than the regular season pass prices anyway and parlays into a few more visits in '04 in addition to '05 patronage. At worst, it's an attempt to be clever.
Giving away the gate AND the overpriced food during the peak season? That's just as nutty if you ask me.
You must be logged in to post