Universal Studios Breaks Yet Another Record
Comcast, the corporate owner of NBCUniversal and Universal Studios, just held its quarterly earnings call.
Guess what! Universal Studios reported its best year ever! Stop me if you’ve heard this one before…
Yes, Universal Studios has broken yet another record. Let’s talk about all the great news.
About Comcast and Universal Studios
Photo: Comcast NBC Universal
Comcast has grown into a Fortune 50 company, indicating it’s one of the largest 50 businesses tracked by the NASDAQ.
During 2023, Comcast finished as the #29 company and currently possesses a market cap of $183 billion as I type this.
We’re talking about a massive, heavily diversified corporation that operates one division you care about more than the rest.
Yes, I’m referring to Universal Studios, the theme park empire that has soared under Comcast’s ownership.
Comcast acquired NBCUniversal in 2011 and immediately committed to the theme park division.
This decision wasn’t a challenging one, as The Wizarding World of Harry Potter had opened the previous year.
Even casual theme park fans recognized the company’s explosive growth potential.
Still, even the most optimistic analysts at the time couldn’t have imagined what has since transpired.
For the third straight year, Comcast reported its highest EBITDA (earnings before interests, taxes, depreciation, and amortization) ever.
Let’s ignore the other Comcast stuff this time and skip straight to the part that matters to you!
Universal Studios Delivers Dynamic Results
Photo: Universal Studios Japan
How does Comcast achieve record EBITDA? The answer starts at the theme parks.
Universal Studios managed a stunning pair of achievements.
For the fiscal fourth quarter, Universal earned its highest EBITDA ever, partially due to the success of Super Nintendo World.
Photo: gameintime.com
By finishing strong, Universal completed its remarkable 2023. The theme parks division claimed its highest single-year EBITDA ever.
I realize that EBITDA is one of those off-putting accounting terms, so let’s just substitute the word money instead.
Universal Studios earned the highest amount of fourth-quarter money ever.
Photo: Universal Studios Japan
In the process, Universal Studios finished its best year for money-making ever.
We’re talking about a theme park division with its roots in the 1910s, but you can use 1964 or 1990 if you prefer.
So, in the 60 (or 34) year history of Universal Studios, 2023 signifies the best performance ever.
Photo: NBCUniversal
Remarkably, the theme park empire is only getting started.
During the earnings call, Comcast CEO Brian Roberts and Comcast President Mike Cavanagh discussed its future.
Let’s discuss what the leaders of Universal Studios are expecting in the near-term.
The Universal Studios Plans for 2024 and Beyond
Photo: NBCUniversal
During earnings calls, analysts from investor firms ask questions of corporate executives.
Notably, during this morning’s call, Roberts and Cavanagh were so giddy with the company’s results that they were offering details.
Typically, during conversations like these, the execs play defense almost as if they are poker players trying to hide their hands.
Photo: NBCUniversal
Instead, this call took on the vibe of a victory lap. It’s clear that Roberts and Cavanagh believe the best is yet to come for Universal Studios.
Here’s a quote from Roberts:
“One thing I would add…on Epic, just to touch on that part of the question, it’s completely original.
“It’s maybe the most exciting project I’ve seen since we bought NBC-Universal, getting built.
“I think it’s the first new entire theme park in decades in the U.S., and we’re so excited.
“We’re taking the Board of Directors to see the construction in the next couple of weeks, which is something we haven’t ever done before.
Photo: Universal
“I think you’ll all want to be there.
“Sometimes, I think ’23 and ’24, are the peak capex years for the construction.
Photo: Universal Parks and Resorts
“We expect to open in ’25, and I give Mark Woodbury and the entire team at Universal incredible kudos to coordinate something of this scale and magnitude that’s being built.”
Cavanagh later adds:
Photo: KLBK
“On parks…we are going to remain at the elevated level around Epic (Universe).
“(We have) the two expansion parks, Hollywood Horror Nights and the Universal Kids in Frisco, Texas, underway at this stage.
“So, we’ll remain elevated in 2024, and then as we come to completion of Epic in 2025, rolling into 2025, we’ll ease off from there.”
What Does It Mean?
That’s as direct as you’ll ever hear from corporate executives.
The gist is that Universal will heavily invest in the parks via capital expenditures in 2024 and 2025.
Once Universal Epic Universe, Universal Kids Resort, and the HHN installation in Las Vegas open, Universal will dial back its investments.
Photo: Universal Blog
So, we can safely expect these three projects to arrive over the next two years, three at the latest.
Universal doesn’t currently have anything planned after that, but we’re getting three theme parks of various scales over the next 36 months!
By the way, while it’s not technically theme park-related, the execs also hyped the performance of the film division.
Image: Universal
NBCUniversal won the box office battle in 2023, and two of the reasons why are Universal Studios-specific.
The Super Mario Bros. Movie was one of the year’s top performers, while Five Nights at Freddy’s was arguably the biggest surprise.
Hints abound that we’ll get a Five Nights at Freddy’s theme park experience later this year, probably around Halloween…
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