Seaworld Entertainment Inc, which is popular for its shows with Orcas and killer whales reported a net loss in the last quarter of 2016. The company experienced some revenue growth, but due to the high maintenance cost of the exotic sea animals, the company reported a net loss for the last quarter. The increase in attendance was negligible and it also contributed to the total loss of the company. Experts predicted that the last quarter would end in a loss, but the amount of money lost exceeded the expectations.
Seaworld was constantly under criticism for its treatment of the orcas and killer whales. As a result, Seaworld announced that it will end the trademark Shamu killer whales. The company also announced that it will stop breeding the orcas and the current generation of orcas will be its last. In an attempt to redeem the reputation, Seaworld has decided to collaborate with the Humane society to ensure ethical treatment of the sea animals. The Shamu Killer Whales show will be phased out in the upcoming months.
Seaworld, based in Orlando reported a net loss of $11.9 million in the final quarter of 2016, which is a significant increase from the reported net loss of $11 million in the last quarter of 2015. For the whole year, Seaworld reported a total loss of $12.5 million. In 2015, Seaworld reported a net income of $49.1 million. The overall net loss in the first quarter of 2017 is also reported to be $84 million while it was $43.5 million in the last year. There is an increase of 3% in the revenue of the company as the overall revenue increased to $220.2 million.
The attendance for the last quarter also decreased by 30,000. The company reported that the decrease in attendance is probably due to the Hurricane Mathew in October. The number of international audience who visited the shows also significantly reduced. The theme parks at California and Texas received more visitors compared to the last year, but the increase in attendance was offset by the lack of buzz at the Florida parks. As a result, the total attendance also dropped by 2.1%.
In another report, the net loss is due to the investments in the development of theme parks in other areas. The cost savings efforts resulted in some loss for the company as it has decided to expand. Reports on a partnership to create Seaworld Abu Dhabi surfaced earlier. It is rumored that one-of-a-kind marine life theme park will be established on the Yas Island. It is alleged that it will contain new features like Yas Waterworld, Ferrari World and Formula One Racing on the infamous Yas Marina circuit. There are no official reports from Seaworld regarding this plan. Also, it is speculated that the Orlando theme park will get a new raft ride in 2018 while a new roller coaster will be built in Busch Gardens before 2019.
The predictions of Seaworld are not so favorable this year as the summer season will be shortened due to the change in the Memorial Day holiday. The company speculates that its revenue will cap at $365 million slightly higher than the last year’s revenue of $361 million.