• by Sarah Mahoney  @mahoney_sarah, May 9, 2023

Six Flags Entertainment Corp. is riding into rollercoaster eason with an array of tech-driven experiences, looking to boost attendance among cost-conscious thrill-seekers.

The company, the world's largest regional theme park business and the king of North American water parks, just reported earnings of $142 million for its first quarter.

That's a record, and 3% higher than last year's $138 million, beating analysts’ predictions. But it masks a 3% decline in attendance. And the Arlington, Texas-based company says its losses swelled to $70 million for the quarter, worse than the $66 million it lost in last year's comparable period.

The company believes the attendance decline is linked to poor weather in water-drenched California and Texas. It estimates that attendance would have risen by 6% had the temperature in key markets been warmer and less rainy.

In the announcement, president and chief executive officer Selim Bassoul says the positives in the report are "proof points that our new strategy and our new culture are beginning to take hold."

He also reviewed a series of new initiatives to encourage more visits and higher spending once people enter the parks. He noted that the first quarter is typically its smallest of the year, representing about 10% of the total activity for the year.

And in a call webcast for investors, he called out rising guest satisfaction scores and improving season-pass sales.

With an uncertain economy causing more families to reevaluate their summer spending plans, Six Flags is testing dynamic pricing for single-day tickets in several parks. "If successful, this program will enable us to extend our booking curve, drive yield on our busiest days, and drive volume on our slower days," Bassou said.

Next month, the company plans to launch an update of its app, making it easier for attendees to schedule their day, purchase flash passes and increase mobile food orders. It's also adding more wristband technology. Infrastructure investments include more shaded areas, landscaping and seating options. It also added several VIP lounges for its most loyal guests.

Six Flags also extended its partnership with Coca-Cola in a deal that includes in-park offerings, as well as a new e-gaming endeavor.

Despite a weak start to the season, "management noted that it is encouraged by the rebound in attendance it has seen to date," writes Chris Woronka, an analyst who follows the company for Deutsche Bank, in his note on the earnings. "Season pass unit sales more than doubled from year-ago levels, aided partly by a simplified product lineup that seems to be resonating more cleanly with frequent guests."

He continues to recommend investing in the company, which "is likely making enough progress on key operational initiatives that it should see significant increases in attendance as peak season approaches."