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COVID-19 has had a major effect on Universal’s bottom line, with the operator recording huge losses in 2020
Tom Anstey | Planet Attractions | 28 Jan 2021
Universal had a rough 2020, with the global pandemic significantly affecting its finances Credit: Asso Myron on Unsplash
With Universal Studios Hollywood remaining closed and the rest of Universal’s parks operating at limited capacity through much of the year, the financial impact of COVID-19 has been revealed, with the operator reporting significant losses for its parks during 2020.
Following a record-breaking 2019, the global pandemic put the brakes on Universal’s park successes, cutting overall earnings from US$2.45bn (€2.02, £1.79bn) to a loss of US$541m (€445.7m, £394.5m) - a staggering 122% decline.
For revenue, figures had declined 68.9%, down from US$5.93bn (€4.89bn, £4.32bn) in 2019 to US$1.84bn (€1.52bn, £1.34bn) in 2020.
One positive for Universal is that its latest fourth quarter results showed the parks division breaking almost even, with a US$15m (€12.36m, £11.9m) loss for a quarter which included pre-opening costs for the upcoming Universal Beijing Resort.
Losses in Q4 did however represent a 103.3% decline, with Universal earnings in 2019 at US$636m (€524m, £463.7m).
For Universal’s parent company, Comcast, 2020 painted a significantly different picture, with revenue up 4.9% to US$103.56bn (€85.33bn, £75.51bn), while earnings came in at US$34.26bn (€28.23bn, £24.98bn).
The company attributed these results to its media divisions, which have all seen uptake during a year where most people have had to spend much of their time indoors.
“While this is certainly the most challenging period we have faced, I could not be more proud of how our management team and employees continue to pull together and deliver,” said Brian Roberts, chairman and CEO of Comcast. “Today’s results are a testament to their commitment and dedication.”
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