Seaworld Stocks Plunge 84%

[quinnmac000]

SeaWorld has suffered a 84% collapse in profits as customers have deserted the controversial aquatic theme park company following claims it mistreated orca whales.
The company, which trains dolphins and killer whales to perform tricks in front of stadiums full of spectators, on Thursday reported declines in attendance, sales and profits because of “continued brand challenges”.
SeaWorld has been in the headlines since the 2013 documentary Blackfish detailed claims that its treatment of orca whales provoked violent behaviour contributing to the deaths of three people. Following the release of the documentary, attendance collapsed and the company lost more than half of its market value on Wall Street and its former CEO was forced out.

Already in the pipeline are plans for a new shark exhibition in Orlando and an attraction in San Antonio that will allow customers to swim with dolphins in a “naturalistic” setting.
The company’s financial report released on Thursday showed net income in the second quarter dropped from $37.4m in 2014 to $5.8m in 2015, a 84% decrease. Revenue fell from $405m to $392m. Attendance dropped by more than 100,000 from 6.58 million to 6.48 million.
Analysts will now be closely watching SeaWorld’s sales and attendance numbers in the third quarter, which is traditionally the company’s most profitable and covers the summer vacation season. Attendance may suffer from a fresh scandal last month, in which a SeaWorld employee was found to have infiltrated animal rights protest groups against the company.

 

[GAcoaster]

Their profits are down 84%, not their stock.

The parks are still profitable.

 

[Donald Razorduck]

SeaWorld has suffered a 84% collapse in profits as customers have deserted the controversial aquatic theme park company following claims it mistreated orca whales.
The company, which trains dolphins and killer whales to perform tricks in front of stadiums full of spectators, on Thursday reported declines in attendance, sales and profits because of “continued brand challenges”.
SeaWorld has been in the headlines since the 2013 documentary Blackfish detailed claims that its treatment of orca whales provoked violent behaviour contributing to the deaths of three people. Following the release of the documentary, attendance collapsed and the company lost more than half of its market value on Wall Street and its former CEO was forced out.

Already in the pipeline are plans for a new shark exhibition in Orlando and an attraction in San Antonio that will allow customers to swim with dolphins in a “naturalistic” setting.
The company’s financial report released on Thursday showed net income in the second quarter dropped from $37.4m in 2014 to $5.8m in 2015, a 84% decrease. Revenue fell from $405m to $392m. Attendance dropped by more than 100,000 from 6.58 million to 6.48 million.
Analysts will now be closely watching SeaWorld’s sales and attendance numbers in the third quarter, which is traditionally the company’s most profitable and covers the summer vacation season. Attendance may suffer from a fresh scandal last month, in which a SeaWorld employee was found to have infiltrated animal rights protest groups against the company.

You just now getting around to month old info. Profit also took a hit as they sank tons of it into the PR campaign that was well intentioned but misguided. They should be advertising smiling faces and having fun at their parks. If anything, a cgi of what the Blue World additions will look like. I did read a good idea that should be incorporated, viewing tubes like the sharks not just large at and below grade windows.

Peta is fighting the orca tank expansion in San Diego, the one park that's really giving them fits. I'd start at Orlando or San Antonio where there's no state board of idiots to contend with.

I would suggest a Busch Gardens adjacent to the San Antonio park modeled after Phantasialand in Germany with themed hotels that's part of the park. The Chinese and African themed Hotels that overlook those sections of the park for example.

Still think after the B&W you will see a major rework of a childrens/family ride section.

 

[AK-Jake]

^I don't believe that the San Antonio park has the available land to build an actual Busch Gardens there...Google Earth makes it look like the park is pretty well surrounded by residential neighborhoods with some land available immediately around it (if they own it and if it's not hilly). And then you have to remember that there's Six Flags Fiesta Texas only 15 minutes away from their park--literally right down the road...why build yet ANOTHER park nearby? They simply don't have the money to build another park even if the San Antonio property was ripe for 2nd (technically 3rd) gate development.

 

[matt78]

I wonder if doing away with the SeaWorld name and rebranding all the parks as Busch Gardens wouldn't be a good idea. I think it might help them from a public relations standpoint. the viewing tubes are a good idea and if done right should end up being more popular than the shows are. They should close the shows down and replace the stadiums with additional aquarium space. I would then have the trainers posted throughout the exhibits to answer any questions that the guests might have. If the animals require any interaction with the trainers I would save that for after the parks close. I would hope that if the Blue World project is a success that they will start to do similar projects with the other exhibits. I would then give each exhibit a restaurant similar to Sharks Underwater Grill. I think this would help them eventually recover most of the money spent to redo the exhibits as I think these restaurants would be really popular. Another idea I have would be to replace Shamu's Happy Harbor with rides from Sesame Place since they own the rights and is something they should be taking advantage of. I think a mini Sesame Place would be a good draw for families with younger kids.

As far as PETA goes if they actually cared about the animals they would be working with SeaWorld instead of trying to force SeaWorld to close down. They should have learned from Keiko that releasing captive whales into the wild doesn't end well.

 

[Teebin]

They should have learned from Keiko that releasing captive whales into the wild doesn't end well.

I suppose that depends on what you call "well". Doesn't it?

 

[SeventyOne]

I wonder if doing away with the SeaWorld name and rebranding all the parks as Busch Gardens wouldn't be a good idea.

I realize PETA wants to take the credit for this, but it's far more Potter (and particularly Diagon Alley) than Blackfish. That and I think free beer did wonders to prop up their AP base. Until the Orlando park is straight-up better--more to do, better rides--it's going to suffer no matter what they call it. Vacation days are a zero sum game, and right now Universal offering more bang for the buck on non-WDW days.

 

[anihilnation]

I realize PETA wants to take the credit for this, but it's far more Potter (and particularly Diagon Alley) than Blackfish. That and I think free beer did wonders to prop up their AP base. Until the Orlando park is straight-up better--more to do, better rides--it's going to suffer no matter what they call it. Vacation days are a zero sum game, and right now Universal offering more bang for the buck on non-WDW days.

I agree, Seaworld is just using Blackfish as an excuse. Mako hopefully will serve as a new beginning. They should just aim to have the Seaworld Orlando park done more akin to Busch Gardens but with a marine theme.

 

[anihilnation]

Also, with all the sentiment concerning Orcas, I think they should just create for them a large area and give up on the show. I mean, what is the show nowdays ... hey look, Shamu is gonna splash you ... I'd much prefer to see a larger more natural looking environment for them.

 

[UNIrd]

When I visit for Mako next year, it'll be the first time I do so since the opening of Antarctica: Failure of the Budget Cuts. But it's the coaster that's responsible stealing the day away from someone else.

 

[matt78]

Also, with all the sentiment concerning Orcas, I think they should just create for them a large area and give up on the show. I mean, what is the show nowdays ... hey look, Shamu is gonna splash you ... I'd much prefer to see a larger more natural looking environment for them.

I agree. I think that an expanded area with one of the shark encounter tubes in it would end up being just as if not more popular than the shows. When you add in the restaurant with the viewing area it seems to me to be a no brainer.

 

[matt78]

I suppose that depends on what you call "well". Doesn't it?

Thats true. From what I read about his release he never broke the bonds that he had with humans. He also ended up dying less the 2 years after his release. To me that doesn't seem fair to the whales. I can understand if you would disagree though.

 

[matt78]

I realize PETA wants to take the credit for this, but it's far more Potter (and particularly Diagon Alley) than Blackfish. That and I think free beer did wonders to prop up their AP base. Until the Orlando park is straight-up better--more to do, better rides--it's going to suffer no matter what they call it. Vacation days are a zero sum game, and right now Universal offering more bang for the buck on non-WDW days.

I agree that Potter is mostly responsible for SeaWorlds attendance problems. I think changing the name would be a good way to signal that they are going in a new direction. If I was them I would add more rides, expand the habitats and do away with the animal shows.

 

[GAcoaster]

No, Potter is not responsible for SeaWorld's attendance problems. People still buy the Orlando Flex Tickets for both Universal and SeaWorld.

PETA, Blackfish and (mostly) SeaWorld are responsible.

SeaWorld let PETA and Blackfish tell the story without countering it from the start which was a big mistake. They also made a mistake with the announcement of the tank expansions because it would appear they are admitting their facilities are too small (when in fact they are adequate). They should have taken on PETA and the film makers head on and called them out on their hypocrisy.

More than anything though, SeaWorld was mismanaged by past leadership (post AB and pre-new CEO). They spent millions in Orlando on Antarctica which never provided the ROI promised. I don't have a degree in business, but even I could have told them that as the largest investment in the park's history it would never deliver based on the design. That money could have been better spent on SO MANY OTHER THINGS that would have increased attendance.

I think the new management has the right idea and is on the right track, hopefully it's not too late...

 

[Mad Dog]

SeaWorld has had a steady attendance decline throughout their entire park system, not just Orlando SeaWorld, ever since Blackstone purchased them. They have a corporate philosophy of sucking the profits out of their acquisitions, cutting operating costs and putting little back into their properties. As an example, just take a look at how they've weakened BGW since the purchase. They are a prime example of a company that only looks at the short time picture. They are reaping the fruits of what they sowed.

 

[s8film40]

I think PETA had an impact on the San Diego park and Potter had an impact on the Orlando park, it was a double whammy. People planning a trip to Orlando typically add something on to their Disney trip, Disney + Universal or Disney + Seaward. If people had to choose between the two there really isn't a choice. Not to mention Universal and Potter really now require 2 days. They are making the right decisions to fix it. The San Diego park is getting the bigger tank to appease some of the people out there and the Orlando park is getting a new coaster to hopefully draw some theme park fans in.

 

[AK-Jake]

No, Potter is not responsible for SeaWorld's attendance problems. People still buy the Orlando Flex Tickets for both Universal and SeaWorld.

PETA, Blackfish and (mostly) SeaWorld are responsible.

SeaWorld let PETA and Blackfish tell the story without countering it from the start which was a big mistake. They also made a mistake with the announcement of the tank expansions because it would appear they are admitting their facilities are too small (when in fact they are adequate). They should have taken on PETA and the film makers head on and called them out on their hypocrisy.

More than anything though, SeaWorld was mismanaged by past leadership (post AB and pre-new CEO). They spent millions in Orlando on Antarctica which never provided the ROI promised. I don't have a degree in business, but even I could have told them that as the largest investment in the park's history it would never deliver based on the design. That money could have been better spent on SO MANY OTHER THINGS that would have increased attendance.

I think the new management has the right idea and is on the right track, hopefully it's not too late...

This! Why SeaWorld didn't counter with a vicious counter-attack on PETA and the boobs who made "that film" (I can't even say its name) has always boggled my mind. It's as if they thought this was simply going to go away, and now they find themselves struggling for existence from a group that has always been a joke...coupled with the unfortunate added situation of Universal/WDW going gangbusters and sucking away even more of their attendance base. Their announcement of the Blue World Project couldn't have been at a worse time either; it only leant more credence to the PETA/BF campaign. Couple all of this with the awful Antarctica expansion (should have called it Budgetland) and the situation only gets MORE precarious. Mako had better kick some serious a$$, because they desperately need it.

But if anyone can turn that company around, it's Joel Manby. If he can't do it, no one can. Like the quote above says, I just hope he's not too late. I'm heading down in 5 weeks for my fall vacation. Ordinarily, a day at SeaWorld Orlando would be in the cards, but I don't have time for it this year. I'm doing 1 day at BGT for Howl-O-Scream and I'll be back next year to ride Mako and Cobra's Curse.

 

[WAJAS]

The Florida parks and Sesame Place have seen an attendance increase in the past year (maybe BGW too, I don't keep track of that place).

Attendance was either steady or growing at all of SeaWorld's parks UNTIL Blackfish. While Blackstone may have not invested much and just sucked the profits out of SeaWorld there was little to no attendance decline until Blackfish at any of the parks.

And on Antarctica, any right minded theme park somebody could tell you that if they wanted to make a profit on it they would need to have nice aesthetics AND a slightly decent ride. It was obvious that someone (echm, Brian Morrow) wanted to do something big but lacked the financial backing to actually do it right.

Lastly, if only they had invested internationally earlier. Then they would be in a much better situation.

 

[Teebin]

Oh! So SeaWorld has ceased breeding Orcas and selling them to other parks? I didn't know that. That is really good because Orcas are not on any endangered list, perhaps threatened in a few areas around the world, but hardly endangered of going extinct.

 

[WAJAS]

Oh! So SeaWorld has ceased breeding Orcas and selling them to other parks? I didn't know that. That is really good because Orcas are not on any endangered list, perhaps threatened in a few areas around the world, but hardly endangered of going extinct.

There status is actually "Data Deficient." This means that depending on which population you are actually revering to they are either endangered (like the Southern Resident group), doing great, or not enough information is known. They don't actually sell them to other parks either (Loro Parque does have some on loan but the trainers their lived in Orlando for over two years to gain knowledge on how to take care of them and SeaWorld trainers watched over them for another five years after they were moved).