Comcast: Epic Universe on hold

Construction of park won’t resume until the economy revives.

BUSINESS

Construction of the new Epic Universe theme park in Orlando won’t resume until the nation’s economy begins to revive, a key leader of Universal Orlando’s parent company said Wednesday.

“All things considered, it’s a big capital swing, so better to really march forward with that when we have just a bit more visibility on what’s going on with the economy post-COVID,” Comcast Chief Financial Officer Mike Cavanagh said during a virtual interview at the J.P. Morgan Investor Conference. “I can’t tell you when that’s going to be when we revisit it.”

When asked, Cavanagh stressed Universal is delaying the project, not rethinking whether to do it at all.

“The confidence is high,” he said. “It’s a great project.”

Comcast revealed on April 30 the work was stopping at what will be Universal’s third theme park gate in Orlando. Original plans called for it to open in 2023.

Comcast hasn’t said when Epic Universe might open now, although Orange County Mayor Jerry Demings said Universal told him it would be delayed a year.

“Given what’s going on and given the lack of visibility in the early weeks of COVID, it felt like the prudent thing to do. We can go right back to it whenever we feel the time is right and just give up some time,” Cavanagh said.

A delay wouldn’t increase the project’s overall cost since construction was in early phases and not gone vertical yet, he said.

Universal Orlando’s theme parks are currently closed during the pandemic, although some restaurants at CityWalk are scheduled to open Thursday.

Closing the parks for the entire second quarter could cost Comcast $500 million in profits, the company said last month.

Cavanagh reiterated Universal still doesn’t have an opening date for its existing theme parks in Orlando and California.

Shanghai Disneyland opened this week, although crowds were drastically restricted and masks required. Still, Disney CEO Bob Chapek said almost all the tickets had been sold out.

Universal is paying close attention to what happens with the Mouse.

“We’re watching Disney and how it’s going for them in Shanghai,” Cavanagh said. “It’s obviously very encouraging to see the demand.”

Meanwhile, Universal park leaders “are hard at work, getting creative how to work on the safety side of things,” he added.

“We can make it a very safe experience at the right time. Hopefully, that will resonate with people’s desires as consumers,” Cavanagh said.

Even with limited crowds, Cavanagh said he expected the theme parks to do better financially than if they stayed shut.

In the interview, Cavanagh covered other several topics from sports, lost advertising revenue and how some Comcast employees are working from home.