Is SeaWorld in Trouble?

SeaWorld faced some rough waters of late, and it’s unclear whether or not the storms of criticism will blow over anytime soon.

According to Skift, park revenues increased 1 percent to $374 million but total per capita revenue dropped from $62.02 in the second quarter of 2016 to $61.05 in the second quarter of this year. For the first half of the year, attendance fell by 353,000, revenues dropped 5 percent to $560 million and the company reported a net loss of $237 million.

Parks in Orlando and San Diego saw especially low attendance numbers. Competitive pressure in Orlando played a role in struggling numbers when bigger rivals opened new attractions like Pandora – The World of Avatar and Universal’s Volcano Bay water park.

An even larger problem, though, is public perception — particularly regarding its treatment of killer whales and its Orca breeding program. In 2013, the documentary Blackfish was released at the Sundance Film Festival and criticized the company for its killer whale treatment.

In 2014, company shareholders sued, claiming SeaWorld executives deceived them by downplaying the negative impact of the film before and after the IPO. While SeaWorld dismissed the impact following the film, shares plunged nearly 33 percent and attendance tanked. In the documentary’s continuing wake, former SeaWorld Orlando president Terry Prather worked with federal investigators to give them evidence for their probe into the matters released in the film.

The company announced last year it would end its Orca breeding program and would transition the killer whale shows to more “natural” and “educational” experiences. It also announced a partnership with the Humane Society, intended to help educate guests on animal welfare and conservation issues.

These efforts are proving ineffective, however, when it comes to attendance numbers, and PETA and other animal-rights groups continue to expose inhumane practices. For example, in June of this year, PETA targeted the parks’ Electric Ocean shows, which feature loud noises and laser light shows. While the shows don’t involve the animals directly, PETA argues the sounds and lights harm the orcas, bottlenose dolphins and other echolocating animals, which emit sounds and listen to the echoes of calls that return from objects near them. The sounds of the show can make it difficult for them to do this and can even cause physical pain and psychological distress.

SeaWorld owns and operates 12 parks in the United States, including Busch Gardens and Sesame Place. While the company tries to rebuild its brand, FBI investigations are ongoing.