In tourism news,
Comcast’s theme-park division posts strong third-quarter results. Meanwhile, Universal Orlando files plans for 2,541 parking spaces near the convention center.
Despite Hurricane Irma shutting down Universal Orlando Resort for two days, Comcast’s theme park division posted strong results in the third quarter, the company disclosed Thursday.
The theme-park division increased revenue by 7.7 percent to $1.6 billion, according to Comcast, which owns owns Universal Orlando parent NBC Universal.
Revenue fell slightly short of analyst’s predictions but was not significantly impacted by Irma, said Edward Jones analyst David Heger.
Comcast attributed the growth to the openings of Minion Park in Japan in April, Orlando’s Volcano Bay in May and The Wizarding World of Harry Potter that debuted last year in Hollywood.
“The investments they’ve made continue to pay off,” said Bob Boyd, a theme-parks analyst at Pacific Asset Management, adding Comcast’s other parks around the world “made the hurricane in Florida less of an issue.”
The fact that Irma struck in September — typically a slower month in family tourism before Halloween is in full swing and school resumes — also likely helped lessen any financial blow, Boyd added.
During Thursday’s conference call with investors, Comcast leaders touted the success in their theme parks, including Volcano Bay.
“At NBC Universal, our momentum continued throughout each business unit, including terrific results at Theme Parks and Film,” said Comcast Corp’s chief executive officer and chairman Brian Roberts in a statement.
Boyd said he was surprised by the glowing reviews since Volcano Bay has faced “growing pains” since it opened because of the new technology and ride reservation system — issues that likely take a year to get ironed out, he said.
“They pushed the envelope in quite a few areas,” Boyd said. “Those issues are going to take some time to work through.”
However, the water park’s strength appears to be encouraging people to schedule an extra day in their vacation to visit, he said.
Early next month, Sea World and Disney are expected to release their third-quarter results.
Boyd said he believed Disney will be affected more financially by Irma because of its larger infrastructure footprint and more hotel rooms in Central Florida. He expected Disney executives to talk more in the Nov. 9 earnings call.
Last week, Sea World said it eliminated 350 positions companywide, although the biggest hits were in Florida and California.