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With guests returning to its parks in their droves, Universal has for the first time since COVID-19 emerged made a profit in its quarterly earnings report
Tom Anstey | Planet Attractions | 30 Jul 2021
Results were driven by Universal’s Orlando resort, which recently opened its highly-anticipated VelociCoaster at Islands of Adventure Credit: Universal Orlando
Universal has cause to celebrate achieving a profit in its theme parks division for the first time since the start of the pandemic.
For the quarter, theme park revenue increased by US$958m (€805.5m, £686.1m) to US$1.1bn (€920m, £790m). Adjusted earnings for the quarter were US$221m (€185.8m, £158.3m) including pre-opening costs of US$150m (€126.1m, £107.4m) for the upcoming Universal Beijing. The same period for the previous year saw an adjusted loss of US$393m (€330.5m, £281.5m).
“For the first time since the pandemic, our theme parks have returned nicely to profitability,” said Brian Roberts, chairman of Universal’s parent company, Comcast.
“This was led by Orlando where we've seen strong domestic demand in both per cap spending and in attendance, which returned to 2019 levels somewhat faster than we thought might happen despite virtually no international visitation. And in Hollywood, since restrictions have been lifted, attendance is growing week after week.”
In addition to the dropping of restrictions at its US parks, Universal opened the highly-anticipated VelociCoaster at Islands of Adventure in Orlando during Q2. It also opened its Secret Life of Pets attraction at its Hollywood park in April.
“We're optimistic that our domestic parks are on a path to return to historic levels of profitability, but we need international visitation to resume which remains dependent on COVID related travel restrictions being lifted,” said Mike Cavanagh, chief financial officer at Comcast.
“At our Japan Park, results continue to be challenging after closing in late April, we reopened on June 1 with capacity restrictions that are likely to remain in place through the summer.
“Last, as we prepare to open our newest park - Universal Beijing - we expect overall results will be negatively impacted by up to US$250m (€210m, £179m) in the third quarter.”
Results for the year overall are also looking good for Universal. For the six months ended June 30, revenue increased 61.5% to US$1.7bn (€1.4bn, £1.2bn) compared to 2020, when all of Universal’s parks were either closed or operating at limited capacity as a result of COVID-19. For the year, adjusted earnings stand at US$159m (€133.8m, £114m), which includes pre-opening costs of US$306m (€257.6m, £219.4m) for Universal Beijing.
Theme park
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