Posted Thursday, September 13, 2007 5:34 PM | Contributed by Jeff
Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that combined 2007 revenues at its parks through September 3, 2007, were $828.4 million, on 18.5 million guest visits and average in-park per capita spending of $40.30. The 2007 results include the operations of the Paramount parks, which the company acquired from CBS on June 30, 2006.
On a same-park basis, excluding the effect of the newly acquired parks, total revenues through the Labor Day weekend were up 2%, or $7.8 million. The increase in same-park revenues is the result of a 5% increase in average in-park guest per capita spending to $39.54, offset somewhat by a 3% decrease in attendance, or approximately 319,000 visits. Out-of-park revenues on a same-park basis were up slightly through the Labor Day weekend.
Including results from the acquired parks, revenues for the month of August, including the Labor Day weekend, decreased 1%, or $2.6 million, from a year ago. The decrease in revenues for the month is attributable to a 5% decrease in attendance, or 315,000 visits, substantially offset by a 4% increase in average in-park per capita spending to $40.11. Out-of-park revenues during this same period increased 3%, or $573,000. The decrease in attendance and revenues during the month is primarily attributable to a significant decrease in complimentary tickets and season pass visits at the newly acquired parks.
“During the month of August we eliminated approximately 120,000 complimentary tickets that had been issued in prior years at the newly acquired parks,” said Dick Kinzel, Cedar Fair’s chairman, president and chief executive officer. “We also experienced a decrease of 110,000 visits from season passholders at the same parks, which resulted from increasing season pass prices at the new parks to bring them in line with the Cedar Fair pricing strategy. The resulting decrease in season pass visits, combined with the elimination of complimentary tickets, accounts for more than 70% of the year-over-year decrease in August attendance.
Read the press release from Cedar Fair.