Universal Studios Attendance Tumbles
Comcast, the corporate owner of NBCUniversal, just reported its quarterly earnings.
Overall, the report proved a mixed bag for Comcast. Even worse, a couple of previous strengths proved weak during the quarter.
(Jeff Fusco/Comcast via AP Images)
As UniversalParksBlog has hinted for a while, attendance has been soft at the theme parks lately. Now, we have proof of it.
Based on revenue indicators, Universal Studios attendance has tumbled. Here’s what we just learned.
About Comcast
Photo: Comcast NBC Universal
In March 2013, Comcast recognized a unique business opportunity and acquired NBCUniversal.
At the time, executives emphasized the allure of owning a lucrative television studio.
Photo: NBC/Universal
Still, analysts deduced that Comcast noticed the same thing that everyone else in the industry had.
Universal Studios theme parks were suddenly hot thanks to the drawing power of The Wizarding World of Harry Potter.
Pictures of mile-long lines at the park’s entrance gates went viral.
A deep-pocketed corporation like Comcast would have been smart to swoop in and buy the struggling NBCUniversal.
Photo: NBC Universal
So, they were, and they did. Since then, Comcast has taken a largely hands-off approach to NBCUniversal management.
Still, we learned during the pandemic that there’s a financial push-and-pull here.
Photo: Universal
When other parts of the Comcast empire leak money, the budget in the theme parks division tends to shrink.
Universal Studios fans haven’t had to worry about this much lately, as corporations know the deal.
Photo: touring plans.com
When a business division is netting a ton of revenue, any smart executive will prioritize growth/expansion.
You’ve got the demand. So, you try to increase supply. It’s basic economics.
Photo: Universal
While the pandemic wreaked havoc with the daily operations of Universal Studios theme parks, the numbers spoke for themselves.
Comcast identified Universal Studios as a division capable of explosive growth.
Photo: Fox 35
During the so-called “Revenge Travel” era, fans flocked to the parks in record waves.
Comcast reaped the financial rewards, reporting quarter after quarter of record earnings.
Photo:skillastics.com
Now, we’ve reached the end of the line for that particular money train. Comcast’s most recent report confirms it.
How Did NBCUniversal Do?
On July 23rd, 2024, Comcast reported its quarterly earnings. You can read the full report here.
Overall, the company’s total revenue fell 2.7 percent year-over-year, which is never a good thing for a business this large.
Image: Associated Press
Even worse, net income from Comcast fell 7.5 percent from the same time last year, although adjusted net income was flat.
This data suggests the money leakage I’d mentioned earlier.
Image: UniversalParksBlog
Specifically, NBCUniversal had a bad quarter. Since that’s NBCUniversal’s division, you can guess what’s coming.
Thankfully, most of the damage stems from the films and streaming sections of NBCUniversal.
Universal Pictures lacked the drawing power of anything this year compared to last year’s The Super Marios Bros. Movie.
Until recently, that was the second-most popular animated blockbuster ever.
Universal also released the (fairly) reliable Fast X in that quarter. So, nothing this year could match.
Thus, Universal Pictures’ revenue fell by a massive 27 percent.
Photo: Getty
Also, Peacock lost 500,000 subscribers and suffered a net revenue loss of $348 million.
As comical as this is to say, Peacock improved from the previous year’s $651 million loss.
Based on this information, you may believe that NBCUniversal’s problems exist outside the theme park walls.
Not so fast, Sparky! The Universal Studios news was the worst in at least ten quarters!
How Did Universal Studios Do?
Before I get into this, I want to be clear on something.
If your child gets straight A’s on their report card for three years, how big a deal is it if they get a B in something?
Photo: Universal Orlando
Exactly. If anything, you’d wonder about the teacher, or you’d realize that your child isn’t perfect, which is a healthy thing.
That’s where we’re at with Universal Studios, as the post-pandemic report cards have been ridiculously good.
Now, we have a slight blemish, and it’s one I’d predicted here.
Many casual tourists are understandably waiting until next year to visit Universal Orlando Resort.
Photo: Universal Orlando Resort
That’s when Universal Epic Universe opens. So, people who don’t visit annually are right to wait.
We can identify this trend in the data, as the theme parks division fell $234 million short of this time last year.
Photo: Universal
For the same quarter in 2023, Universal Studios earned $2.209 billion. In 2024, revenue fell to $1.975 billion.
That’s a shortfall of 10.6 percent. Corporations get nervous when a division’s revenue falls by double digits.
Photo: Universal
Universal Studios is only barely there, but it happened. The accounting-friendly EBITDA stat is even more worrisome.
Theme park EBITDA plummeted 24.1 percent to $632 million.
Comcast Expresses Confidence
Photo: Universal
According to the documentation, operating expenses decreased, yet the parks lost more revenue anyway.
Comcast President Mike Cavanagh understands that this is just a temporary setback.
Photo: NY Times
During the call, he stated “While the parks results are below our original expectations for the year, we still view parks as a terrific long term growth business for us.”
So, this was just a blip, one that could continue for the rest of 2024.
Photo: Universal
However, business should surge again in 2025 as Epic Universe approaches.
Still, we can tell by the data that summer theme park attendance is soft.
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Feature Photo: Universal
