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FUN NYSE· Cedar Fair L.P.
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FUN NYSE· Cedar Fair L.P.
Earnings report Q4 2023

FUN Reports Strong Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, FUN reported total net revenues of $1.80 billion. The company's revenue is generated from three main segments: in-park revenues, out-of-park revenues, and concessionaire remittance. In-park revenues amounted to $1.63 billion, representing a significant increase compared to the previous year's $1.21 billion. Out-of-park revenues reached $223 million, up from $168 million in the prior year. However, concessionaire remittance decreased to $52.5 million, compared to $39.3 million in the previous year.

Strengths

FUN demonstrated strong revenue growth in the latest quarter, driven by increased in-park and out-of-park revenues. The company's management attributed this growth to several factors, including higher admission sales, increased spending on food, merchandise, and games, as well as growth in accommodations and other revenue sources. The extension of the validity of season-long products from 2020 to 2021 due to the COVID-19 pandemic also contributed to the increase in revenue.

Challenges

Despite the overall revenue growth, FUN faced challenges in the form of a decrease in concessionaire remittance. This decline may be attributed to various factors, such as changes in concessionaire agreements or a decrease in guest spending on concessionaire products.

Noteworthy

It is worth mentioning that FUN's revenue recognition is primarily based on actual guest spend at their properties. The company also sells many products, including season-long products, in advance, resulting in deferred revenue. The COVID-19 pandemic had an impact on FUN's operations, leading to the extension of the validity of season-long products from 2020 to 2021.

Summary

FUN reported strong revenue growth in the latest quarter, driven by increased in-park and out-of-park revenues. The extension of the validity of season-long products due to the COVID-19 pandemic played a significant role in this growth. However, the company faced challenges with a decrease in concessionaire remittance. Overall, FUN's financial performance in terms of revenue indicates a positive trend, highlighting the company's ability to generate revenue from various sources within its amusement parks and water parks.

Source documents

Form 10-K  filed on Feb 16, 2024
126 pages scanned

Reference data

Company financials Q4 revenue 371M
Analyst estimates Q4 EPS missed by -34.46%
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