GRAND PRAIRIE, Texas (AP) _ Six Flags Entertainment Corp. (SIX) on Thursday reported fourth-quarter net income of $79.4 million.
The Grand Prairie-based company said it had profit of 93 cents per share.
The results exceeded Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 28 cents per share.
The amusement park operator posted revenue of $269.5 million in the period, which missed Street forecasts. Nine analysts surveyed by Zacks expected $285.2 million.
For the year, the company reported profit of $276 million, or $3.23 per share. Revenue was reported as $1.46 billion.
“I am very proud that we have achieved our ninth consecutive record year,” said Jim Reid-Anderson, chairman, president and CEO. “Our exceptional operating performance in the fourth quarter demonstrates the strength of our pricing power, membership strategy, and in-park spending programs, all of which, together with our domestic and international park expansion initiatives, will provide a strong platform for growth for many years to come.”
Record fourth quarter 2018 revenue of $270 million grew $13 million or 5 percent compared to the fourth quarter of 2017. The strong revenue growth was primarily driven by a 6 percent increase in guest spending per capita and a 3 percent increase in attendance. This growth was offset by an unfavorable revenue adjustment of $15 million related to the company’s international agreements due to delays in the expected opening dates of some of the parks in China caused by a challenging macroeconomic environment. This resulted in a 38 percent decline in sponsorship, international agreements and accommodations revenue compared to the fourth quarter of 2017.
Six Flags shares have increased 15 percent since the beginning of the year. The stock has dropped slightly more than 2 percent in the last 12 months.