Compared with last year, Universal’s theme parks have seen a drop in revenue and earnings at the tail end of summer. Parent company Comcast said in an earnings report on October 22 that its theme parks’ revenue fell 4.4% to $2.6 billion, and the adjusted EBITDA dropped 17.1% to $780 million, which represents a decline of $160 million from a year ago.
Comcast co-CEO Mike Cavanagh said that the dip was due to several factors, such as macroeconomic and geopolitical headwinds. Cavanagh said that competitors had been faster in recognizing softness in the theme park business—and quicker to execute marketing strategies to combat it.
“We believe competitors were quicker to anticipate and recognize softness and demand, and adapt their marketing strategies ... we continue to work through capacity challenges and ride throughput at Epic, given the complexities of opening the most technologically advanced theme park ever built. We are taking action to address both of these challenges,” he said.
“We remain confident in the long-term outlook for this business,” he added. “Our powerful intellectual property, differentiated attractions and world-class destinations position us well for long-term growth.”
“Despite near-term cyclical headwinds in Theme Parks, we remain confident in the business's long-term growth potential. We generated $4.2 billion in free cash flow and are making meaningful progress on the separation of NBCUniversal and Sky, which remains on track to create two independent companies with the financial strength and flexibility to pursue their respective growth strategies,” said the earnings report.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
