Comcast: Universal theme-park revenue down in 2nd quarter
Revenue at Universal’s theme parks was down nearly 11% in the second quarter, Comcast revealed during an earnings call with analysts Tuesday.
Executives blamed the revenue drop on lower attendance following the post-pandemic surge and the lack of new attractions in Orlando. Two-thirds of the decrease was tied to lower attendance at the company’s parks in Florida and California.
“Going back to 2022 and 2023, parks were clearly the early beneficiaries of substantial rebounds in tourism and travel after the pandemic, resulting in a surge in demand that contributed to us reaching record results for both of those years,” said Michael Cavanagh, president of Comcast Corp., the parent company of NBCUniversal.
“More recently, other travel options, including cruises and international tourism, given the strength of the dollar, have experienced their own surge in demand, which caused visitation rates at our parks to normalize,” he said.
The most recent quarter — spanning April, May and June — is caught in the lull between the record post-pandemic years and the scheduled opening of Epic Universe theme park in Orlando in 2025, said Jason Armstrong, Comcast’s chief financial officer.
“This is the first full-quarter comparison to the highly successful opening of Super Nintendo World in [Universal Studios] Hollywood early last year, which drove that park’s record results in the second quarter of last year,” Armstrong said. “And we haven’t launched a major new attraction in Orlando since VelociCoaster in 2021, in anticipation of Epic Universe.”
Universal: New ‘unlimited’ Florida-resident ticket allows entry through mid-December
Epic originally was scheduled to debut in 2024, but pandemic conditions prompted a delay.
Universal’s theme parks took in $10.1 billion in the second quarter of this year, down 10.6% from a year previous.
The conditions and results could be similar for upcoming quarters, Cavanagh said.
“I think the factors, even though we’re excited about Hollywood Horror Nights in the second half of the year … I think that the trends that we are experiencing likely continue until we get to Epic opening up sometime next year.”
Jurassic World VelociCoaster, an intense, dinosaur-based roller coaster, debuted at Islands of Adventure theme park in the summer of 2021. It was the last major attraction to open at Universal Orlando, although Universal Studios park has added the Villain-Con Minion Blast attraction and, this year, introduced a new nighttime spectacular and a daytime parade. It also opened kids-driven DreamWorks Land this year.
Universal Orlando recently added a pass that allows unlimited visits for Florida residents through Dec. 18.
The company remains “bullish” on theme parks, Armstrong said.
“In addition to Epic Universe, we have a fantastic place of new attractions and experiences on the horizon – Donkey Kong Country in Osaka and a Fast and Furious roller coaster in Hollywood, as well as the Universal Horror Unleashed in Las Vegas and our Universal kids resort coming to Texas,” he said.
Opening dates have not been announced for Epic or the projects in Las Vegas and Texas. Two of Universal’s three new hotels near the new Orlando park are set to open in January and February.
Beyond parks, Comcast’s Tuesday earnings call leaned into its broadband business, streaming platforms and the potential of future business with the NBA. Its revenue for the second quarter of 2024 was $29.7 billion, a year-to-year decrease of 2.7%.