SeaWorld profits down 84 per cent in latest earnings report
by Tom Anstey | 07 Aug 2015
SeaWorld says the expense of its multi-million dollar PR campaign is why Q3 earnings are so low / Shutterstock.com
SeaWorld has attributed an 84 per cent drop in profits to its ongoing PR push as the company tries to repair its damaged reputation.
SeaWorld has been struggling to restore its reputation, tarnished by the 2013 documentary Blackfish, which alleged an orca at the attraction killed its trainer because it was traumatised by its living conditions. As a result, the company’s stock value plummeted, attendance lagged and sponsors withdrew their support for the company.
SeaWorld hasn’t sat back however, launching a massive marketing push, known as the Truth Campaign, to rehabilitate its name and reputation. SeaWorld is also planning to build significantly larger enclosures to improve its whales lives at the cost of several hundred million dollars.
The company reported Q2 profits of US$5.8m (€5.3m, £3.7m), down from an operating profit of US$37.4m (€34.2m, £24.1m) for the same period in 2014. Total revenues for the three months ended 30 June were US$391.6m (€362.7m, £255.2m), down from US$405.2m (€371m, £261.1m) in 2014.
The expense of its multi-million dollar PR campaign, says SeaWorld, is what resulted in the Q3 earnings coming in so low.
While income is down significantly, attendance is actually slightly up on 2014 for the first six months of the year in its Florida parks, while overall attendance across its 11 theme parks has declined by around 2 per cent – a drop of around 100,000 people. Share prices have also risen 4 per cent since the last quarter.
“We realise we have much work ahead of us to recover more of our attendance base," said new CEO Joel Manby, speaking to investors. “Fully resolving our brand challenges, specifically in California, will require sustained focus and commitment to correct misinformation.”
Manby added that the company has been adding exciting new attractions in Orlando, with a shark-themed roller coaster at SeaWorld Orlando and an Egypt-themed coaster at Busch Gardens Tampa both scheduled to open in 2016, and that he would set out his vision for the future of SeaWorld at a special event on 6 November.
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SeaWorld has attributed an 84 per cent drop in profits to its ongoing PR push as the company tries to repair its damaged reputation. SeaWorld has been struggling to restore its reputation, tarnished by the 2013 documentary Blackfish, which alleged an orca at the attraction killed its trainer because it was traumatised by its living conditions. As a result, the company’s stock value plummeted, attendance lagged and sponsors withdrew their
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