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Credit: Inside The MagicSince the new Six Flags Entertainment merger occurred earlier this summer, new policies have been introduced for many of these new parks under the Six Flags banner. One of those new policies will affect millions of younger guests, which might upset some.
Six Flags Entertainment Merger Ushers in New History for Dozens of Theme Parks – More Policy-Restricting Changes Made
Six Flags Entertainment Corporation, North America’s largest regional amusement park operator, has reported its financial results for the second quarter of 2024. This was the final quarter before the merger of Cedar Fair and Six Flags, which was completed on July 1, 2024.
The results highlight significant growth and some challenges across both legacy companies. Cedar Fair recorded a robust performance in the second quarter, with net revenues reaching a record $572 million—up 14% or $71 million from the same period in 2023.
The increase was primarily driven by an additional 53 operating days and a surge in attendance, which hit a record 8.6 million guests, marking a 17% increase or 1.2 million extra visitors.
However, in-park per capita spending decreased slightly from 3% to $59.54, while out-of-park revenues rose by 17% to a record $73 million. The company reported a net income of $56 million, reflecting a 4% increase despite $11 million in merger and integration-related costs.
Cedar Fair’s adjusted EBITDA rose 36% to $205 million, with a 35.9% margin. The company attributed its success to higher season pass sales, increased demand driven by new attractions, and strategic capital investments across its parks.
In contrast, Six Flags experienced a more mixed quarter, with total revenue slightly declining by 1% to $438 million, attributed to 58 fewer operating days than the same quarter in 2023.
Kings Island, now part of the Six Flags Entertainment merger, has implemented a new chaperone policy, effective immediately, to enhance guest safety. This move follows similar measures adopted by other theme parks in response to increasing incidents of unruly behavior at entertainment venues.
Park offerings, group events, and more at the theme parks will see guest advisory and park policies changing in the coming years as group tickets, VIP tours, theme park elements, park names, and more will see changes.
Under the new policy, guests aged 15 and younger must be accompanied by a chaperone who is at least 21 years old to be admitted to or remain in the park after 4 p.m. on most days and after 2 p.m. on Saturdays. The chaperone must present a photo ID with a birthdate, and each chaperone can accompany no more than ten guests aged 15 or younger per day.
Other theme parks either dawning the new policy or will have the new policy implemented soon will be Cedar Point, Six Flags Entertainment Corp parks, Six Flags Magic Mountain, the newly acquired Cedar Fair parks, Six Flags New England, Six Flags Fiesta Texas, Six Flags Great Adventure, Kings Dominion, Six Flags Great Escape Lodge, and more.
Kings Island officials emphasized the importance of safety, noting that the policy is a proactive step to ensure a secure environment for all visitors. Any guests 15 years old or younger found without a chaperone after the designated times will be removed from the park. The park’s leadership reiterated that the safety of guests and associates remains their top priority amidst the industry’s broader challenges with inappropriate behavior.
Following the merger, Six Flags Entertainment Corporation’s President and CEO, Richard A. Zimmerman, expressed optimism about the future despite some weather-related impacts in July. Zimmerman emphasized the strong performance of Cedar Fair’s legacy portfolio, noting record attendance and revenues, which continued a growth trend from the previous three quarters.
He also highlighted the strategic benefits of the merger, including increased geographic scale and diversification, which positions the company to deliver a solid full-year performance in 2024.
Zimmerman acknowledged the initial steps to integrate the two companies, aiming to unlock synergies and growth opportunities. He noted that the combined organization’s diversified footprint and strong balance sheet would support continued value creation for shareholders and customers.
Despite short-term challenges, Zimmerman remains focused on advancing strategic initiatives and instilling core operating principles across the expanded portfolio to realize the merger’s potential fully.
Overall, the second quarter of 2024 showcased Cedar Fair’s ability to capitalize on increased attendance and strategic investments. Six Flags navigated operational challenges and positioned itself as part of the newly combined entity for future growth.