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Published on Friday, February 21, 2020

Six Flags share price takes a tumble after posting surprise loss






Theme park operator Six flags saw its stock price plunge faster than a rollercoaster ride after posting a surprising Q4 loss of $11.16 million.


The Texas based company's stock price dropped 18%.


It was a big reverse after posting a profit of $79.4 million last year.


Revenue was down slightly to $261 million and attendance figures declined by 3%, although in-park spending not including admission sales was up by 3%.


The loss includes charges accrued over problems with its China joint venture.


"We are working diligently to formulate a new strategic plan with the goal of restoring sustainable growth in attendance, revenue and profitability, and also to add directors with critical skills and experiences to our board," said new chief executive Mike Spanos, who joined a few months ago.


Spanos blamed the imposition of minimum wage rates and has sought to cut operating costs elsewhere.


However this has led to 'an adverse effect on the guest experience.'


The attendance drop was down to weak numbers in Mexico and at Six Flags' Magic Mountain in Southern California.


"At Magic Mountain, we experienced poor weather, nearby fires and a delay in introducing our major new ride, West Coast Racers, which did not open, until after Christmas," said Interim CFO Leonard Russ.

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