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SeaWorld Misses Targets, Stock Plummets


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WTOP Newsradio, Washington, DC, is reporting that SeaWorld stock (SEAS) is down nearly 1/3 after reporting barely increased attendance, drastically INcreased net income, but decreased EBITDA.

See also:

http://www.businessinsider.com/seaworld-shares-tumbles-august-13-2014-8

Of course, some had to credit Blackfish:

http://www.forbes.com/sites/briansolomon/2014/08/13/seaworld-shares-plummet-as-killer-whale-protests-hurt-parks/

Cramer claims it's only an aberration:

http://www.cnbc.com/id/101917010

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Orlando Sentinel: http://www.orlandosentinel.com/business/os-sea-world-earnings-20140813,0,5155583.story

Quoting Coaster Crew Facebook admin "The Legend" (source):

I think the most shocking is having the Easter holiday shift to this quarter and have your attendance be practically flat is essentially catastrophic, as that is the second busiest week of the year.

Obviously part of this is Blackfish, but I think part of it is just current management running parks poorly and on the cheap. This year very few of the parks opened new rides (the only one that did BGT, is yet to open Falcons Fury). How could Sea World compete against Diagon Alley & Walt Disney World when it opens nothing the year after it opened the terribly awful penguin ride. Can't seeing them doing any better next year with BGW getting a new ride far below the caliber of that park and the struggling flagship park Sea World Orlando getting a new Sea Lion show that is sure to draw no gate.

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The Legend is right. The only truly remarkable and well-done rides added to the parks since this conversion have been Verbolten and Cheetaka. Everything else has been filler. This as the parks face exponentially stronger competition. At least fifteen years ago, a family visiting Walt Disney World would have a hard choice to make between a day at Universal Studios and a day at SeaWorld. As it is now, a visit to Orlando already includes Walt Disney World and Universal Orlando... SeaWorld will need to step up its game in some big ways.

More and more, the future of the current SeaWorld Parks is looking grim.

I bet, for one, they wish they hadn't chosen that name.

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Park Management on the Cheap, Blackfish, and poor public relations regarding Blackfish have added greatly to SEAS lack of success.

Both Disney and Universal are experiencing excellent growth in the Orlando Market, yet Sea World continues to flounder. The 2 Busch Parks are not what they once were either. Talking with some long time season pass holders they are extremely unhappy with the turn they have seen their parks take.

People need a reason to leave Disney or Universal property and SEAS is not providing them with that reason, if anything they are reaffirming the choice not to leave.

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When I lived in Orlando, I went to SeaWorld and it was really nice... but..... I never went again. It just didn't make me want to keep coming back. Universal and Disney always had some interesting events going on to keep my attention, especially the International Food and Wine Festival at Epcot!

Interesting tid bit... as a Universal Resorts employee, you could use your employee identification to get in free at SeaWorld.

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SeaWorld is an odd duck. If we're really being honest, it's a zoo. And a darn good one! And the few coasters it has are nice ones.

But people travel from around the world to get to Universal Orlando and Walt Disney World, and become absorbed into its parks and resorts and day trips and details. No zoo – no matter how beautiful – can compete with that. SeaWorld is not a great "theme" park, nor a great "amusement" park. It's a great zoo with some nice themes and thrills. It's just an odd duck. It doesn't quite fit with the parks it's supposedly "competing" with.

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Private equity.

Blackstone.

Acquired, and has already gotten back its investment and more, by milking the parks.

This is what Mr. Kinzel and Apollo would have done to Cedar Fair.

Thank goodness for Q, which for reasons of its own, foiled Kinzel's plans, using the very anti-takeover measures Kinzel and his cronies had instituted to protect themselves.

Oh, the irony!

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Which, if the rumors are true, is really what happened.

I was told at BGW, by multiple people, that the newer SEA attractions are not planned out far in advance at all. What takes a 5 year plan for Cedar Fair is done with a 1 year plan at SEA. I was told Mach Tower came to be in less than a year with a manufacturer who was not completely comfortable with what they were doing. Thus the problems it had and still has today.

I'm not saying this is true, just saying what I was told.

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Which, if the rumors are true, is really what happened.

I was told at BGW, by multiple people, that the newer SEA attractions are not planned out far in advance at all. What takes a 5 year plan for Cedar Fair is done with a 1 year plan at SEA. I was told Mach Tower came to be in less than a year with a manufacturer who was not completely comfortable with what they were doing. Thus the problems it had and still has today.

I'm not saying this is true, just saying what I was told.

Sounds true.

And though this doesn't mean they're low quality, they're certainly not working with headlining companies. Moser's Rides for Mach Tower? Zierer for Verbolten? I'm guessing Europe in the Air was created in-house? I guess Intamin has been their partner for Falcon and Cheetah Hunt (one had a very delayed opening, the other has not opened yet). Remember when the parks worked almost exclusively with B&M and churned out fantastic sister rides every few years? That partnership brought about Griffon, SheiKra, Alpengeist, Montu, Kumba, Great White, Kraken, Manta...

I think the lack of planning and investment is the main problem. But it's aggravated by the park that whomever is making these decisions appears to be completely out of touch.

Busch Gardens Williamsburg - most beautiful theme park on Earth. Irish mythology simulator "Corkscrew Hill" is replaced by the awful, modern "Europe in the Air," which closed halfway through last season, allegedly just to save money. The entry British hamlet turned into a modern plaza of horrendous decor and rock music. Mach Tower closed more than it's open. Entertainment division implodes last year with walk-outs and firings canceling most shows halfway through the season. And apparently next year, the park will get a 750-pph coaster decorated in modern, grungy, motocross, flaming-hoops carnival themes. My god... Never thought I'd see the day.

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We dream of Kings Island being so high quality in food, entertainment, rides, themed lands, music, etc.

Busch Gardens Williamsburg has it, HAD it, and manages to screw it up. And that's with outcry telling them they're doing it wrong!

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I still believe if Sea World would have come right out and fought Blackfish from the beginning it would never have been so harmful, but the approach to ignore a National story is the worst move possible. Once again a great case study in Public Relations and how not to do it.

When you operate in the tourist/customer driven industry you must recognize and resolve all issues that impact your customers opinions of the product your provide. There are numerous examples of how not to do it and examples of how to do it. I use a few of these as case studies in the Marketing classes I teach.

Carnival Triumph - Fire vs Royal Caribbean Grandeur of the Seas fire

Sea World - Blackfish

Six Flags New Texas Giant Death

The New Kentucky Kingdom

Edited by RailRider
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