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What To Expect From SeaWorld's Expansion Into Abu Dhabi

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What To Expect From SeaWorld's Expansion Into Abu Dhabi

SeaWorld Entertainment Inc (NYSE: SEAS) announced Wednesday it has entered into a licensing partnership with Miral, a destination developer, to develop SeaWorld on Yas Island in Abu Dhabi.

Positive Announcement

Barclays’ analysts view this announcement as positive, and although SeaWorld Entertainment would not benefit finally from this partnership until 2022, “the announcement is an encouraging first step in SEAS' international expansion plans.”

The park on Yas Island will be the first one dedicated to research, rescue, rehabilitation and return of the local marine life in the region, with an aim to care and conserve the local marine life.

Abu Dhabi Expansion

“Miral is the developer and promoter of Yas Island, which is a destination resort that offers Yas Waterworld, a golf course, retail, and lodging, among other entertainment attractions. SeaWorld Abu Dhabi will open by 2022,” the analysts mentioned.

The partnership would enable SeaWorld Entertainment to expand internationally, without having to use its own capital, and generate a stable incremental cash flow stream over time.

“While SEAS has not disclosed licensing details, it will be compensated not only for use of the SeaWorld brand but also for its veterinary, theme park, marine science and zoological expertise,” the analysts stated.

During the development phase, the company is to receive payments from Miral, which will be accounted for in deferred revenue and recognized after the park opens. So far, SeaWorld Entertainment has received $10 million.

At last check, shares of SeaWorld were up 1.08 percent at $19.70.

Posted-In: abu dhabiAnalyst Color News Emerging Markets Contracts Markets Movers Trading Ideas Best of Benzinga

 

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