Comcast released their Q2 earnings report to day and in surprise to no one, their theme park division fell 94% during the April-June time frame.
From this graphic we can see that they only generated $87 million during this quarter which was down about 94% from the $1.464 they made for the same quarter last year.
Of course this quarter took the brunt of the downfall as the parks were open Jan-late March which was the first quarter. In June, Universal Orlando reopened, so this would likely be where the majority of the 2nd quarter earnings came from in regards to the parks. Universal Hollywood is still closed at this time. Universal Japan has also reopened and would be adding to the totals.
Here is the information from the Q2 report:
Theme Parks revenue decreased 94.1% to $87 million in the second quarter of 2020, primarily due to the temporary closures of our theme parks as a result of COVID-19. Universal Orlando Resort and Universal Studios Japan reopened with limited capacity in June, while Universal Studios Hollywood remains closed. Theme Parks Adjusted EBITDA loss was $399 million in the second quarter of 2020, reflecting lower revenue, partially offset by lower operating costs.
For the six months ended June 30, 2020, revenue from the Theme Parks segment decreased 65.1% to $956 million compared to 2019, primarily due to the temporary closures of Universal Studios Japan in late February and Universal Orlando Resort and Universal Studios Hollywood in mid-March as a result of COVID-19. Theme Parks Adjusted EBITDA loss was $323 million, reflecting lower revenue, partially offset by lower operating costs.”
According to Spectrum 13 the executives did note that though attendance was down it’s still financially better to remain open:
“In an earnings call Thursday, executives said attendance levels were significantly lower at its reopened parks, but noted the parks were in a better position financially being open rather than remaining closed. Universal Studios Hollywood in California, which shuttered in mid-March, has yet to reopen.”
This all comes after they did layoff an unspecified amount of employees in Orlando after reopening in June. And like Disney, they canceled their Halloween event called Halloween Horror Nights.
Disney’s Earning Report
This all sets up an interesting scenario looking ahead to the Walt Disney Company’s earnings report that will release on August 4. Unlike Universal, Disney parks mostly remained closed during their 3rd Quarter that ran from April-June. Some of their overseas parks reopened, but Walt Disney World didn’t reopen until July and Disneyland is still closed. Now there are rumors that Disney may have to have some deep layoffs as well to remove the “bloat.” They too have canceled their Halloween event, and could be canceling their Christmas event as well. I can’t see their theme park division performing any better than Comcast’s and it could be even be worse. But we will have to wait and see.
Comcast might be able to weather the downturn better as they have their cable, internet, and other divisions that performed. Overall they were down, but not by nearly as much as I expect Disney to be down by.
“Revenue for the second quarter of 2020 decreased 11.7% to $23.7 billion. Net Income Attributable to Comcast decreased 4.4% to $3.0 billion. Adjusted Net Income decreased 12.2% to $3.2 billion. Adjusted EBITDA decreased 9.1% to $7.9 billion.”
At this time the Epic Universe expansion is still on hold.
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