Six Flags Magic Mountain makes about $50 million a year in profit - News Report

[Darkbeer]

http://www.chron.com/disp/story.mpl/ap/fn/4035254.html

Six Flags Magic Mountain is a thrill seeker's paradise, boasting 17 of the tallest, fastest roller coasters in the country while generating as much as $50 million in annual profit.

[tloolgb]

Not shabby at all.

[Peabody]

The number can't be true....That has to be the fuzziest math I've ever seen.

Explaination borrowed from a friend at another coaster site:

"There just isn't any way to make the math work out. Let's say Magic Mountain has an operating margin of 33%---that's 1/3 higher than even the most successful theme park operators, mind you. They drew 2.8M guests---that's believed to be factually accurate. To have made $50M last year, those guests would have to spend an average of $53.50 per person---almost double the average per capita spending chain-wide. So, Magic Mountain must be VASTLY more efficient than not only the average Six Flags park, but ANY amusement park. But, it must also be VASTLY more capable at separating guests from their money than the average Six Flags park ($32 and change per cap in '05) or the average Cedar Fair park ($37.68)."

[ekester]

Fuzzy math, fuzzy timing ("as much as" could mean from 10 years ago - aka pre-DCA and pre-shooting) and fuzzy definition of "profit."

Does that number take into account capital investment, depreciation, etc? Or is it just operating profit? If they're spending $20MM a year in capital, the $50 doesn't look nearly as good. And if that $50 has dropped to $30 in the past 5 years, it looks even worse.

Lot of room for interpretation in those statements.

[tloolgb]

If they're spending $20MM a year in capital, the $50 doesn't look nearly as good.

Well that is an interesting question, are they using the word profit where the mean income?
I mean it could be viable. $53 per person? Considering it is $15 to park, $15 to get a lunch, add on any souvenirs or extra food $53 per day is believeable.

[cellarhound]

Originally Posted by tloolgb

Well that is an interesting question, are they using the word profit where the mean income?
I mean it could be viable. $53 per person? Considering it is $15 to park, $15 to get a lunch, add on any souvenirs or extra food $53 per day is believeable.

And then you have placement/vendor contracts including advertisting revenue to consider...