Comcast (CMCSA) has a significant challenge on its hands. The company just released its latest earnings report, and it revealed that it recently suffered a major decline in its theme park business due to a startling trend among consumers.
The company, which owns Universal Studios theme parks in the U.S., Japan, Singapore, and China, highlighted in its second-quarter earnings report for 2024 that it earned roughly $1.9 billion in theme park revenue, which is a 10.6% decrease from what it earned during the same quarter in 2023.
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Delays and demand normalization bring theme park bottom line down to earth
In the report, Comcast mainly attributed the decline in revenue to “lower guest attendance” at its theme parks in the U.S.
During a recent earnings call, which discussed the report, Comcast President Mike Cavanagh revealed that he believes that two main factors contributed to the decline in foot traffic.
He first said that the company’s theme parks are starting to see a normalization in demand after COVID-19 recovery caused a spike in guest attendance due to rebounds in tourism and travel in 2022 and 2023.
Cavanagh also claimed that the delayed opening of Super Nintendo World at Universal Studios Hollywood and the pushed-back opening date of Epic Universe at its Florida theme park, which is now set to open during the summer next year, caused “a lull in action.”
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“I think the trends that we are experiencing (will) likely continue until we get to Epic opening up sometime next year,” said Cavanagh during the call.
The decline in guest attendance at Universal Studios in the U.S. comes after ticket prices for its Florida theme parks increased in November last year.
One-day tickets at Universal Studios and Islands of Adventure increased from $109 to $119 for adults, and for children, the price went up from $104 to $114. Its two-day and Park-to-Park tickets were also subject to significant price increases.
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"Our pricing reflects the incredible, world-class entertainment experiences we continue to offer our guests, and with our date-based variable pricing model, guests have more flexibility when planning a visit to our destination and can choose the best time to visit that suits their needs," said Universal Orlando in a statement in November.
The price increases at Universal Studios appear to have inspired its top rival, Disney World, to also hike its ticket prices. For multiple dates in 2025, ticket prices for Disney World increased by about $10 on average compared to 2024 prices.
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