Six Flags Q2 revenue rises on higher season pass, membership sales
FUN•Outlook
- Six Flags expects expanded season pass and membership offerings to support future attendance growth
- Company sees recurring revenue and visibility into demand improving due to higher-tier pass sales
- Six Flags says focus on high-return parks and disciplined capital allocation to drive long-term earnings
Result drivers
- Season pass and membership sales - Co said higher attendance and revenue growth were driven by increased season pass and membership sales, with active pass base up 6% on same-park basis
- Higher-tier pass mix - Co said guests traded up to higher-tier season pass products, supporting higher-value guest relationships and recurring revenue
- Expense management - Co said operating costs and expenses remained well controlled despite higher attendance, supporting improved operating leverage
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the leisure & recreation peer group is "buy"
- Wall Street's median 12-month price target for Six Flags Entertainment Corp is $28.00, about 49.3% above its August 5 closing price of $18.75
