SeaWorld Entertainment sinks as pressure mounts due to orca treatment, with third quarter results showing a 9.5 percent drop.
The theme-park operator reported the results of the third quarter. Due to mounting pressure from animal rights activists, SeaWorld Entertainment Inc. dropped 9.5 percent and is forced to cut the earnings forecast for 2015.
According to the company, the park closures occurring over Halloween were due to bad weather. In addition, legal matters are requiring extra investments. This year’s earnings without deduction are calculated at 360 million dollars. In 2014, SeaWorld Entertainment Inc. reported 370.1 million dollars in earnings. The number of 2015 is unadjusted for depreciation, amortization, taxes and interest.
Following the report, SeaWorld Entertainment Inc. stocks declined rapidly by 7.8 percent. Currently, the theme-park operator is facing a major battle with animal rights activist groups. Since “Blackfish” documentary was released in 2013, SeaWorld Entertainment Inc. has attracted an increasing amount of negative publicity. “Blackfish” is a documentary focused on orcas or killer whales and their lives in captivity.
In the 11 U.S. theme parks, orcas are among the favorite attractions of children and adults alike. However, alleged improper treatment of the marine animals and an ongoing debate about the risks orcas face in captivity have hampered attendance at the SeaWorld theme parks. SeaWorld Entertainment sinks as pressure mounts due to animal care concerns.
In an attempt to turn things for the better the newly appointed CEO Joel Manby will present new plans for steering the company to a brighter future during the November 9th investor meeting. Joel Manby is the former CEO of Dollywood.
During the summer quarter SeaWorld theme parks saw a fall in attendance of 0.4 percent, amounting to 8.37 million visits. SeaWorld theme parks in Texas and California showed a significant decrease in attendance. While in Texas the emphasis was placed on reduced promotional activity, SeaWorld Entertainment Inc. announced that the California theme park is facing negative publicity due to orca treatment.
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