A pioneering force in immersive storytelling, Falcon’s Beyond, comprising Falcon’s Creative Group (“FCG”), Falcon’s Beyond Destinations (“FBD”), and Falcon’s Beyond Brands (“FBB”), has revealed its financial outcomes for the initial quarter of fiscal year 2024, concluding on March 31, 2024.
Scott Demerau, Co-Founder and Executive Chairman of Falcon’s Beyond, expressed, “We are thrilled to present our earnings for the first quarter post our Nasdaq listing late last year. This marks the onset of an exciting new era for Falcon’s Beyond as a publicly traded entity. We at Falcon’s Beyond weave tales into reality across theme parks, resorts, rides, technology sales, animation, consumer products, gaming, and beyond. Our endeavor transcends mere entertainment; we are trailblazers in immersive storytelling, operating at the nexus of content, technology, and experiences. With our innovative ethos and top-tier expertise, we are poised to unlock substantial growth prospects in the constantly evolving entertainment sphere.”
Demerau emphasized, “This year, we are well-positioned to further expand our intellectual property and capitalize on pivotal partnerships, including those with Qiddiya and Raging Power Limited, a K11 subsidiary, the Hong Kong-based mall developer. With the entertainment domain undergoing swift transformation, fueled by unprecedented spending in established U.S. markets and emerging territories, we envision remarkable growth avenues for our Company. As we embark on this new chapter as a public entity, we remain steadfast in our dedication to pushing the boundaries of immersive storytelling and delivering extraordinary moments that captivate audiences worldwide.”
Simon Philips, President of Falcon’s Beyond, elaborated, “We are excited to share the noteworthy strides made by Falcon’s in the first quarter of 2024. Early in the quarter, we unveiled a licensing agreement with The Hershey Company, bringing their iconic brands like Hershey’s, Reese’s, Jolly Rancher, and Twizzlers to life in novel location-based entertainment ventures. Furthermore, as part of our ongoing collaboration with Qiddiya City near Riyadh, Saudi Arabia, Falcon’s Creative Group will serve as the master planner and attraction designer for the groundbreaking Dragon Ball theme park. Qiddiya has revealed plans for five cutting-edge rides amidst a lineup of over 30 attractions set against the breathtaking backdrop of the Tuwaiq mountains. Additionally, within Qiddiya City, Falcon’s Creative Group is spearheading the creative direction for Saudi Arabia’s inaugural water theme park, Aquarabia, and contributing to the establishment of a dedicated Gaming & Esports District.”
Philips added, “In this quarter, Falcon’s initiated a letter of intent with Tanseisha Co., a Tokyo-based firm specializing in designing commercial and cultural facilities, to explore the development of new themed entertainment experiences, including location-based entertainment bringing popular Japanese anime and manga to life. In March, we launched Falcon’s Attractions Systems & Technologies, underscoring Falcon’s Beyond’s commitment to distributing cutting-edge immersive rides and attractions globally. The achievements of this quarter underscore the resilience of our business model, the ingenuity of our team, and the enduring allure of our distinct entertainment offerings.”
Financial Highlights for Q1 2024:
- Falcon’s Beyond recorded consolidated revenues of $1.5 million for the three-month period ending March 31, 2024, primarily representing fees for corporate and shared services earned by its FCG division.
- FCG subsidiary revenues amounted to $14.9 million for the same period, marking an 87% increase over the corresponding period of 2023 when FCG was fully consolidated.
- Falcon’s Beyond’s consolidated net income surged to $114.0 million for the three months ending March 31, 2024, compared to a loss of ($9.9) million for the same period in 2023, chiefly driven by a $118.6 million gain from changes in fair value of earnout liabilities.
- Adjusted EBITDA increased from $(8.0) million to $(4.5) million for the three months ending March 31, 2024, compared to $(8.0) million for the corresponding period in 2023, primarily due to lower selling, general, and administrative expenses.
Jo Merrill, Chief Financial Officer of Falcon’s Beyond, remarked, “We witnessed robust financial performance in our debut earnings report, including an 87% year-over-year revenue increase in Falcon’s Creative Group. We are dedicated to reinvesting in and optimizing our business to fuel continued growth. We eagerly anticipate delivering exceptional experiences for our guests, customers, and partners.”
