Universal has released it’s Q3 earnings, noting a strong performance from its theme park division, as investments pay off.
Theme parks adjusted EBITDA for Q3 is $819m, the highest on record and well above pre-pandemic levels (2019: $731). Year to date EBITDA for the 9 months to 30 September 2022 is $1,902m (2019: $1,819m).
Year to date revenue for the 9 months to 30 September 2022 is $5,428m (2019: $4,371m).
Growth over 2021 is due to the COVID shut downs still in operation last year. All parks have seen increased attendance and guest spending.
In addition, Universal Beijing’s opening in September 2021 has generated new revenues, offset by costs. 2021 also included $130m pre-opening costs related to the Resort.
Investments pay off
Both revenue and adjusted EBITDA are now tracking above 2019 pre pandemic levels.
In the Earnings Call, Brian Roberts, Comcast Chairman & Chief Executive Officer said:
“Our Park segment continues to be a real standout generating the highest quarterly EBITDA on record driven by growth in each of our geographies including Beijing which hit profitability for the first time since the grand opening last September. We’re seeing clear evidence that the investments we made throughout the pandemic continue to pay off.
“We launched Super Nintendo World in Japan, the Velocicoaster in Orlando, Secret Life of Pets in Hollywood and our drumbeat of innovation goes on. For example, Super Nintendo World will open in Hollywood early next year. We’re adding another Nintendo-themed area, Donkey Kong to Japan in 2024. And I’m especially excited for Epic Universe to open in the summer of 2025 which will transform Universal Orlando into a weeklong destination.”
“At our US parks, we continue to see strong demand with attendance and guest spending increasing year-over-year. In fact, Orlando, broke a new record delivering its highest level of EBITDA for a third quarter despite the park being closed for two days due to Hurricane Ian. Universal Japan, continues to rebound since capacity restrictions were lifted at the end of March and compared to last year when the park operated under more strict COVID-related controls.”
He also noted that “we continue to invest in attractions and make significant progress in building Epic Universe in Orlando.”
Future trends
Responding to a question about the future and advanced bookings, Chief Executive Officer, NBCUniversal Jeff Shell said:
“So in the Theme Park business record quarter in the third quarter first quarter ever profitability in Beijing. And despite the economic uncertainty that you see elsewhere in the economy we’re seeing no effects of that right now in the Theme Parks even in terms of our performance our actual performance or our bookings going forward. Florida is really strong. Hollywood is really strong. Japan really ended the quarter pretty strong. So it kind of defies logic a little bit but part of it is based on the investments Brian outlined in his opening were really paying off. So the Theme Park business is really strong and we’re seeing no weakness there.”
