The second quarter saw a decline in attendance at the Universal theme parks in Florida and California, signaling a normalization after a post-lockdown boom. This decline was discussed during parent company Comcast Corp.’s Q2 earnings call. According to president Mike Cavanagh, 2022 and 2023 brought record attendance to the theme parks, which were seen as the early beneficiaries of substantial rebounds in tourism and travel. However, with the opening of more options like cruises and international tourism, park visitation has since normalized.
Comcast’s financial results reflected this normalization, with theme park revenue down 10.6% in the quarter, totaling $1.98 billion. Adjusted earnings before interest, taxes, depreciation, and amortization also saw a decline of 24.1%, amounting to $632 million. Cavanagh attributed two-thirds of this decrease to lower attendance at Universal’s domestic parks. He also pointed out the lack of new attractions in the theme parks, with the last major attraction debuting in Florida in 2021.
Cavanagh predicted that the trend of lower attendance would continue until next year when Universal’s third theme park in Orlando, Epic Universe, opens. He expects Epic Universe to boost attendance and lead to longer visits to Universal’s Orlando campus, as well as higher guest spending. Consumer reaction to the details revealed about Epic Universe has been described as “tremendous,” with a preview center for the park in Orlando seeing high foot traffic and enthusiasm.
CFO Jason Armstrong highlighted two new attractions coming later this year: Fast & Furious — Supercharged, a roller coaster in Universal Studios Hollywood, and Donkey Kong Country at Universal Studios Japan. In addition, developments like the Universal Kids Resort in Texas and Universal Horror Unleashed in Las Vegas’ Area15 are also in progress. Armstrong expressed optimism about the long-term trajectory of the parks, citing these upcoming attractions and developments as positive indicators for the future.
While the second quarter saw a decline in attendance at the Universal theme parks, the company remains optimistic about the future. With the opening of Epic Universe next year and new attractions in the pipeline, there is a strong belief that attendance will rebound, and guest spending will increase. It will be interesting to see how these new developments impact the overall performance of the Universal theme parks in the coming years.