Universal Theme Parks Dip From Post-Covid Highs But Epic Universe Awaits, Fan Enthusiasm “Off The Charts”

NBCUniversal parent Comcast reported lower numbers at its theme parks, which had vaunted to new heights post-Covid. Revenue fell nearly 10% and earnings dropped 24% for the second quarter ended in June, the conglom reported today.

Disney stock plunged in May after execs warned of flattening growth in parks due to “normalization” of demand post-Covid. “While consumers continue to travel in record numbers and we are still seeing healthy demand, we are seeing some evidence of a global moderation from peak post-Covid travel,” the company said then. Disney, currently in the midst of a massive parks spending spree, reports its June quarter numbers next week.

The tapering off makes sense. Parks were among the earliest and biggest attractions to open to a nation smacked by Covid and saw record numbers in 2022 and 2023 at a time when no one was traveling very far. But that’s changed, Comcast execs said on a call earlier today where President Mike Cavanagh noted “a Covid recovery pull-forward of a magnitude that we hadn’t previously appreciated.”

Parks benefitted and how from an early rebound in tourism and travel after the pandemic, resulting in a surge in demand that led to record results for both of those years. But, more recently, other travel options like cruises and international tourism given the strength of the dollar are experiencing “their own surge in demand, which caused visitation rates at our parks to normalize.”

The timing of domestic attractions was also a factor. Year-on-year comps in Q2 were tough for Universal Studios Hollywood as it lapped the first full quarter of Super Nintendo World, which opened strong in early 2023.

Orlando was lighter in advance of next year’s debut of Epic Universe, which features five immersive lands. Its designs are generating major interest and a recently opened Epic preview center in Orlando has seen “off the charts” foot traffic and guest enthusiasm, Cavanagh said.

“We look forward to Epic Universe having an meaningful impact” on attendance, longer visits and higher per cap spending, he said. And Comcast still views parks “as a terrific long-term growth business for us.”

Epic Universe, which had originally been slated to open this year but was delayed by Covid, will be the first big, built from the ground up theme parks to rise in the U.S. in decades. The lands include Celestial Park, the first world visitors encounter, that serves as a portal the to the other four — The Wizarding World of Harry Potter – Ministry of Magic; Super Nintendo World; How To Train Your Dragon – Isle of Berk; and Dark Universe. That’s enough for a weeklong vacation destination, Universal is hoping.

The last attraction at Universal Orlando was VelociCoaster in 2021.