Six Flags Entertainment, the world’s largest regional theme park company, today announced that 2018 represented its ninth consecutive record year as revenue increased $105m or eight per cent to $1.5bn.
The full-year revenue growth was primarily driven by a five per cent increase in attendance – a two per cent increase in guest spending per capita, driven by a four per cent admissions per capita increase due to improved pricing on all admissions products and sales of memberships with premium tiers and a seven per cent increase in sponsorship, international agreements and accommodations revenue.
Attendance at the company’s parks grew to 32 million guests in 2018, primarily driven by five domestic parks acquired in June 2018, the benefit of 365-day operations at Six Flags Magic Mountain, strong growth in Mexico, and growth at the company’s waterparks.
Net income for the year ended December 31, 2018, increased $2m or one per cent, driven by the growth in the business described above and a reversal of stock-based compensation expense related to the company’s project 600 target not being achieved, partially offset by the positive cumulative effect of tax reform realised in the fourth quarter of 2017.
Diluted earnings per share for 2018 was $3.23, representing an increase of $0.14 or five per cent compared to 2017. Adjusted EBITDA for 2018 increased to a new high of $554m, up $34m or seven per cent compared to prior year and modified EBITDA for the year was $594m. The company’s 2018 modified EBITDA margin of 40.5 per cent continues to lead the theme park industry.
Jim Reid-Anderson, chairman, president and CEO, said: “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 $270m grew $13m or five per cent compared to the fourth quarter of 2017. The strong revenue growth was primarily driven by a six per cent increase in guest spending per capita and a three per cent increase in attendance.