The recent launch of Epic Universe in Orlando has significantly boosted revenue for Universal theme parks in Q3, contributing to a remarkable financial performance.
Universal’s theme park revenue surged by 18.7% in the third quarter, amounting to a staggering $2.72 billion, as reported by parent company Comcast. Additionally, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 13.1%, reaching $958 million. This impressive growth corresponds with the full operational debut of Epic Universe, which opened its doors in May.
Boosting Attendance and Per-Capita Spending
CFO Jason Armstrong highlighted that Epic Universe is instrumental in driving higher per-capita spending and boosting attendance across the Universal Orlando Resort. The park’s diverse attractions and immersive experiences have captivated visitors, thereby enhancing overall guest engagement.
Operational Efficiency at Epic Universe
Universal’s strategy includes enhancing the efficiency of guest flow to maximize attendance. The focus remains on increasing the number of guests that attractions can accommodate each hour, thus paving the way for higher attendance rates at Epic Universe. This strategic approach is vital for maintaining a competitive edge in the ever-evolving theme park industry.
Addressing Operational Challenges
Comcast President Mike Cavanagh acknowledged that the company has been actively working to refine operations and resolve any initial challenges faced at Epic Universe. The goal is to ensure that the park operates at full capacity as the guest experience is prioritized.
“We’ve been holding back a little bit to make sure the experience is what we want it to be,” Cavanagh stated. He emphasized that the park is expected to reach full operational scale in the upcoming months, allowing more guests to enjoy the attractions.
Minimal Cannibalization of Attendance
Interestingly, Cavanagh also noted that Universal has experienced less cannibalization of attendance from its existing parks, Universal Studios Florida and Universal Islands of Adventure, than initially anticipated. This revelation underscores the successful positioning of Epic Universe as a distinct attraction, drawing its own audience without significantly impacting the other parks.
The integration of Epic Universe into the portfolio of Universal Orlando Resorts represents a new chapter in the company’s growth, promising continued expansion and innovation in the theme park sector.
