Six Flags Posts Surprise Decline in Revenue, Hurt by Weather

Theme-park operator Six Flags Entertainment Corp. reported a surprise revenue decline in its important summer quarter as attendance fell, which the company blamed on adverse weather.

Shares fell 4.9% to $48.75 in premarket trading.

The Texas-based company owns 18 theme parks in North America, operating rides such as the Texas SkyScreamer swing and the Wicked Cyclone roller coaster.

In the latest quarter, which ended in September, Six Flags said it saw a 2% drop in attendance. Given the seasonal nature of its business, Six Flags typically expects the most traffic during its June and September quarters.

Revenue from admissions fell 4.4%, and total guest spending also declined.

Six Flags emerged from bankruptcy in 2010, and its results have generally improved in recent years as more Americans have jobs and more discretionary spending.

In all, Six Flags reported earnings of $102.5 million, or $1.09 cents a share, down from $157.3 million, or $1.64 cents a share, a year earlier. The company blamed the decline in profit on a stock-based compensation charge.

Revenue fell 3% to $557.6 million. Analysts had projected a profit of $1.65 a share on $586.4 million in revenue, according to Thomson Reuters.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

October 26, 2016 08:55 ET (12:55 GMT)

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