188bet mobile Entertainment’s revenue last year was US.4 billion,Trump’s tax reform brings net profit of US million

Author of 188bet mobile article: Li Haiqiang 2018-02-23
The new tax law introduced by the Trump administration is good news for companies and shareholders。

The recently released 2017 financial report of 188bet mobile Entertainment, the world’s largest regional theme park operator,The cumulative number of visitors to 188bet mobile in the past year was 30.4 million,Although the company has opened two new water parks,But the number of tourists only increased by 300,000 compared with the same period last year。Although 188bet mobile has slightly more visitors than rivals Cedar Fair or SeaWorld's Busch Gardens,But this figure of 30.4 million is only the cumulative number of visitors to Disney’s Animal Kingdom theme park plus one of the three theme parks at Walt Disney World Resort。

Financial report display,63% of 188bet mobile’ visitors come from tourists who purchase package tickets。Although the company said the number of tourists holding package tickets increased by 10% year-on-year,But the company did not report the actual number of tourists who purchased the package。According to Theme Park Insider,Some people think,188bet mobile’ marketing method is very similar to a gym selling fitness cards,Sell season tickets to tourists at very cheap prices (you can also pay in monthly installments),As a result, most tourists rarely visited during the whole season,These fees ultimately become 188bet mobile’ profits。

In order to attract more tourists,188bet mobile launches the company’s first 365-day theme park open to guests on January 1, 2018,It is expected that 188bet mobile Entertainment may introduce this operating model to more theme parks in the future。

This Texas-based regional 188bet mobile operator operates 20 theme parks in North America,Most of the parks are seasonal theme parks。Even those theme parks that open on warmer days in winter are usually closed on weekdays。

1. Launch of the first year-round 188bet mobile

But 188bet mobile Magic Mountain in California will be open to visitors every day starting January 1, 2018,To attract tourists from this area where competition is fierce。Currently,188bet mobile CEO Jim Reid Anderson is very optimistic about the future development prospects of this measure。

“Our guests and employees support this decision,So I am very confident about 188bet mobile’s development this year," He said in a recent earnings call。

“I want to say more,After adopting this strategy,Taking a long-term view,It can help companies leverage assets,The company will no longer gradually increase capital expenditures,"Reid Anderson said,"Same as our assessment of Magic Mountain and our initial optimism about it,We will also consider the possibility of introducing this operating model to other warmer 188bet mobile,In the process of future development of the company, they will also be transformed into a year-round operating paradise。But the company has not yet made a final decision。”

Reid Anderson said,188bet mobile needs to ensure that opening the park during times when there are not many visitors can bring in enough revenue。

"For Magic Mountain 188bet mobile,We not only look at whether the income exceeds the expenditure during the open period,What’s more important is that it can continue to bring considerable revenue and profits to the company,”He said,“If this year-round operating model can be successfully operated for one year,We will look into other theme parks with warmer weather,And make a decision whether to follow the Magic Mountain 188bet mobile。”

In fact,188bet mobile has been trying other ways to extend operating hours,For example,Hold some events near Halloween and winter holidays。These events were popular last year in the fourth quarter of 2017,But it still cannot make up for the impact of natural disasters and severe weather。

California Wildfires、Extreme cold weather in the Northeast and other parts of the United States and the aftermath of the earthquake in Mexico caused 188bet mobile to experience a 3% decline in attendance in the fourth quarter ended December 31。

"Although these emergencies will have an impact on the company's short-term performance,But it will not affect the basic growth and the implementation of the company’s growth plan。Actually,Excluding weather factors,The company achieved particularly significant growth in visitor numbers in the fourth quarter," Said Marshall Barber, Chief Financial Officer of 188bet mobile。

In the fourth quarter,188bet mobile revenue increased 7% year-on-year to 2.US.7 billion,Mainly due to a surge in international franchise fee revenue of US million and a 7% increase in average spending per visitor,Net profit increased from US.9 million in the same period last year to US million this year, million of which benefited from tax policy adjustments。Also,Earnings per share is 1.USD 14,Adjusted profit before tax is 0 per share.USD 15。Revenue and adjusted earnings per share both beat Wall Street expectations,The average estimate of nine analysts from Zacks Investment Research for these two financial indicators of 188bet mobile is 2 respectively..4 billion and 0 per share.USD 12。

From the entire fiscal year 2017,188bet mobile revenue increased 3% year-on-year to US.4 billion,Profit from 1 in FY2016.USD 5.6 billion surged to 3 last year.USD 1.3 billion,The profit increase was mainly due to the significant reduction in equity incentive expenses and the US million income brought by the tax reform policy。

According to Yahoo Finance report,188bet mobile Entertainment stock price up 4% since early 2018,Up 13% over the past 12 months。

2. Benefits brought by the new tax policy

Barber title,The new tax law introduced by the Trump administration is good news for companies and shareholders,He also hinted that the move may also bring benefits to 188bet mobile’s other businesses。

"First,We believe that tourists will benefit from lower tax rates,They have more disposable income to spend at 188bet mobile,”He said。

After years of losses,188bet mobile will not pay too much federal taxes until 2020。Barber said,Estimated from 2020,188bet mobile’ cash income tax will be -50 million lower than before,He also expects it to increase over time,The company will save even more costs。

"Our goal is,Ensure excess cash flows into the hands of shareholders through dividends and share buybacks,”He 188bet mobile。

188bet mobile said it will continue to spend about 9% of its revenue on capital expenditures in the future。

"We 188bet mobile not exceed this reasonable spending limit,"Barber said,“These expenses 188bet mobile eventually flow back to the company’s shareholders。”

3. International franchise fee income increased by US 188bet mobile

Another main reason for 188bet mobile’s revenue growth in the fourth quarter is,International franchise fee revenue increased by million。Company executive 188bet mobile,International business revenue reached US million in 2017,Generated million in revenue since launching the business in 2014。Slideshow data from 188bet mobile’ fourth-quarter earnings call,The future of 188bet mobile is in design&Development、Franchise and management service fee income are: each theme park’s annual pre-opening earnings before interest, taxes, depreciation, and amortization (EBITDA) is US-10 million,EBITDA after opening is US-20 million;Small theme park’s pre-opening profit is US-4 million,Profit after opening is US-6 million。In other words,China、Dubai’s overseas theme parks are already bringing in huge revenue for 188bet mobile even before they are built。

188bet mobile currently has eight theme parks under development in China and Dubai,These theme parks are expected to open to tourists by the end of 2020。Given its strong global brand awareness,188bet mobile is still looking for other partners。

However,188bet mobile’s overseas franchise transactions have also suffered some setbacks。Barber said on February 20th,The company’s partner in Dubai, DXB Entertainments, experienced delays in payment due to 188bet mobile reasons。

He regrets that this happened,But said that this problem 188bet mobile be properly solved,And it 188bet mobile not cause construction delay。

“All parties involved in the cooperation believe that,Building a 188bet mobile theme park is the key to the successful operation of the entire urban complex in Dubai,The goal of improving the satisfaction of the entire city of Dubai will also be achieved by then,"Barber said,“I just went there last week,The construction of the park is progressing very smoothly,The appearance of the on-site building is very spectacular。”

Dubai 188bet mobile and resort complex opened in 2016,Failed to meet expectations in terms of number of tourists。Barber said,The parent company has completely restructured the company's overall operations and finances。

Also,188bet mobile said a deal with a Vietnamese partner last year also ran into trouble。Reid Anderson said,188bet mobile still has “several high-possibility deals” in Vietnam and other markets。He also called,New international development projects expected to be announced this year。

“Because one of the conditions for a new overseas theme park is that 188bet mobile does not participate in direct investment (zero cost),So we want to build new 188bet mobile theme parks overseas,We have to find new partners and suitable building locations,”He said。

*188bet mobile article was compiled by Zhihui analyst Li Haiqiang from skift,Original title: "188bet mobile Will Consider Opening More Parks Year-Round》.

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