Mounting losses see departure of SeaWorld Entertainment Chief Executive

Coinciding with an announcement that its net losses exceeded US$200 million in 2017, SeaWorld Entertainment Chief Execuitve Joel Manby has stepped down from the position

The company has “initiated a leadership transition plan” which has seen its President and Chief Executive Joel Manby step down from those roles. John Reilly, Chief Parks Operations Officer for SeaWorld, will become the interim Chief Executive while the company searches for a replacement.

Yoshikazu Maruyama, Chairman of the board, has become interim Executive Chairman until a permanent replacement for Manby is found.

Commenting on the change, independent Director Donald Robinson advised “the board agreed that this transition plan is the right approach to advance the company’s progress and create value for all our important stakeholders.

“We know John will be an excellent leader in this new role and we thank Yoshi for taking on this additional interim responsibility to ensure a smooth transition. Finally, we want to express our deep appreciation to Joel for his leadership and contributions.”

The change in leadership comes as the company reports spiralling losses. SeaWorld Entertainment generated US$1.26 billion in revenues last year, down from US$1.34 billion in 2016. Net loss for 2017 was US$202.4 million, compared to US$12.5 million the previous year. The marine theme park operator puts much of the increase in losses down to a “non-cash goodwill impairment charge”.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) was US$300.8 million for 2017, which beat forecasts by more than US$5 million but was still down US$32 million on the previous year.

SeaWorld owns 12 parks in five US states, including Busch Gardens and Sesame Place. It has faced negative image problems as public attitudes have changed to orca breeding and keeping sea mammals in captivity.

The company cut 350 jobs in October last year as part of an effort to shed US$40 million in costs by the end of 2018. It is also investing more in marketing to combat “public perception issues”.

Parques Reunidos and Merlin Entertainments were reportedly among a number of companies considering purchasing SeaWorld in late 2017.

Gold Coast marine and theme park Sea World is a separate venture.

Image: Discovery Cove, SeaWorld Orlando (top) and the Manta ride at SeaWorld Orlando (below)

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