SeaWorld says it will stop paying shareholders a dividend
Posted Sep 20, 2016 09:37:47 AM.
Last Updated Sep 20, 2016 02:06:04 PM.
This article is more than 5 years old.
NEW YORK, N.Y. – Troubled theme park operator SeaWorld said it will soon stop paying its shareholders a quarterly dividend. Its stock dropped to an all-time low Tuesday.
SeaWorld, known for its water shows featuring killer whales and dolphins, has been dealing with falling attendance and revenue as people’s feelings about using animals for entertainment has soured. Earlier this year, the Orlando, Florida, company said it won’t breed killer whales and would stop using them in shows.
The company said late Monday that it will pay its last dividend on Oct. 7, and the amount it pays will be cut by 52 per cent to 10 cents for each share owned, down from 21 cents in the previous quarter. SeaWorld said the money saved on dividends will be used to buy its own shares.
Last month, the company said its second-quarter revenue fell 5 per cent from the year before, and the number of people entering its parks fell nearly 8 per cent to 6 million.
SeaWorld operates 12 parks, including Busch Gardens, Sesame Place and Aquatica.
Shares of SeaWorld Entertainment Inc. fell 76 cents, or 6 per cent, to $11.93 in afternoon trading Tuesday. Earlier, the stock fell to $11.77, its lowest point since it began trading more than three years ago.
