Universal theme park revenue drops 94% during height of shutdowns
CEO: ‘Road back will be gradual and bumpy’
Plummeting faster than a roller coaster, revenue at Universal theme parks fell 94% to $87 million during the second quarter when most of its parks were closed because of the coronavirus pandemic, the parent company of the attractions said Thursday.
With Orlando’s and Japan’s theme parks reopening in June in the final weeks of the quarter, executives acknowledged it is a better option financially to operate with drastically reduced crowds than to be closed completely.
These were some of the revelations Thursday as Comcast released an earnings report showing the hit of a global pandemic that is presenting historic challenges for the theme park industry.
NBCUniversal CEO Jeff Shell said for theme parks, the pandemic’s “financial impact has been most significant and immediate and the operational challenge the most daunting” for the company.
“The road back will be gradual and bumpy, but I’m confident this business will return to its historical levels of financial performance,” Shell said during a Thursday call with investors.
Universal theme parks have drastically smaller crowds this summer because of the company’s new safety guidelines but feedback from guests on the experience is positive at record levels, Shell said, without providing specifics on attendance.
Thursday’s earnings call did not provide updates on the some of the most closely watched projects for Orlando fans.
Shell did not give a timetable when construction will resume on the third theme park in Orlando, saying the company is waiting for the future to become more certain.
In April, the company announced it was pausing work at Universal’s Epic Universe, which will be built on 750 acres near Orange County Convention Center.
The park’s original 2023 opening will be delayed by a year, said Orange County Mayor Jerry Demings based on a briefing he got from Universal.
The earnings call also did not release an opening date for the unannounced roller coaster at Universal’s Islands of Adventure.
The new thrill ride is under construction, causing regularly social posts from
Universal fans, as it looks more complete.
Despite the major impact on its operations, Comcast still beat Wall Street expectations for its revenues.
Overall, Comcast’s second quarter revenue fell 12% to $23.7 billion and reported its earnings per share at $0.65, a 4% decrease from the same time period last year.
“I am confident in our ability to continue to successfully navigate the impact of COVID-19, and emerge from the crisis even stronger,” Comcast CEO Brian Roberts in a statement.
Universal Orlando opened June 5, more than a month ahead of its competitor, Walt Disney World.
Meanwhile, Universal’s California attractions are still closed without a set reopening date, Shell said Thursday.
Walt Disney Co., which had opened all four Orlando parks by July 15, is set to release its earnings Tuesday.
SeaWorld Entertainment, the Orlandoheadquartered company, will formally release its quarterly earnings Aug. 10, although it provided a “preliminary update” Wednesday that showed total revenue was expected to be $18 million versus $406 million from the second quarter of 2019.