After experiencing record attendance in 2022 and 2023, Universal theme parks in Florida and California saw a decline in visitation in the second quarter of this year. Mike Cavanagh, president of parent company Comcast Corp., explained during the Q2 earnings call that this decrease in attendance reflects a normalization following a post-lockdown boom.
Cavanagh mentioned that while the theme parks initially benefited from rebounds in tourism and travel, the opening of more options such as cruises and international tourism has led to a normalization of park visitation. This normalization is reflected in Comcast’s financial results, with theme park revenue down by 10.6% in the quarter, totaling $1.98 billion. Adjusted earnings before interest, taxes, depreciation, and amortization were also down by 24.1% to $632 million, with lower attendance at Universal’s domestic parks being attributed to two-thirds of the decrease.
One of the reasons for the decline in attendance, according to Cavanagh, is the lack of new attractions in Universal’s theme parks. With the last major attraction, Super Nintendo World in California, opening in February 2023, and the Jurassic World VelociCoaster in Florida in 2021, there hasn’t been a significant new offering to attract visitors.
Cavanagh predicted that the trend of lower attendance will continue until next year when Universal’s third theme park in Orlando, Epic Universe, opens. He expects Epic Universe to boost attendance and increase guest spending by offering a new and exciting experience for visitors. The preview center for the park in Orlando has already generated significant enthusiasm, indicating a positive reception to the details revealed about Epic Universe.
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. Additionally, Universal is working on developing the Universal Kids Resort in Texas and Universal Horror Unleashed in Las Vegas’ Area15, further expanding their offerings to attract more visitors.
Overall, while Universal theme parks are currently experiencing a decline in attendance, there is optimism about the long-term trajectory of the parks. With the opening of Epic Universe next year and new attractions in the pipeline, Universal is positioning itself for future growth and success in the theme park industry.
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