Universal's Theme Parks Business Struggles While Disney Soars
Universal's theme park business is struggling, but there's a plan to rebound
As big as Universal's theme park business is, it has always ranked second, behind Disney. In recent years, however, Universal has shown it wants to take that crown, as it is in a period of unprecedented expansion. From Epic Universe to Universal Kids Resort to Universal Horror Unleashed, and the eventual Universal United Kingdom, the division is growing, but its revenue is not.
What's Happening:
- The quarterly earnings call for Universal's parent company Comcast took place this week, and it revealed that while competitor Disney is setting revenue records in its Experiences division, theme park revenue for Universal was down 4.4% for the quarter.
- According to CNBC, Comcast co-CEO Mike Cavanagh said he was "confident in the underlying strength of the business" but blamed macroeconomic factors for the downturn in business.
- Regarding why Universal's business has struggled while Disney has not, Cavanagh was surprisingly open. He admitted that there had been superior marketing from competitors. A softening of demand in the Orlando area is something both companies had to deal with, but it seems Disney handled it well while Universal did not.
- Universal does have a solution, as it has recently hired Luc Bondar as chief brand and commercial officer for Universal Destinations and Experiences.
- Cavanagh strongly indicated new products from Universal are on the way to battle the business headwind, including a "three park pass." If a Universal Annual Pass that includes Epic Universe is finally on the way, a lot of current pass holders are likely to be very happy.
- Those fixes aren't likely to change things quickly, however. Cavanagh indicated he expected "performance to strengthen," with a "return to growth in the second half of [2027]" which implies business may continue to decline through the first half of next year.
More UDX News:
- Here's what Universal Orlando is planning for the holiday season.
- Universal has released the dates for next year's Mardi Gras celebration.
- Check out the current Florida resident ticket offer for the Universal Orlando Resort.
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