Execs from Universal's parent express excitement about Epic Universe

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The Universal Stella Nova and Universal Terra Luna resorts are scheduled to open in 2025 next to Epic Universe.
The Universal Stella Nova and Universal Terra Luna resorts are scheduled to open in 2025 next to Epic Universe. Photo Credit: Universal Orlando Resort

Excitement about Universal's newest theme park in Orlando, Epic Universe, continues to grow in the year before it is slated to open.

Epic Universe, located a few minutes south of Universal Orlando's existing hub, is expected to open in summer 2025. Two new hotels will be located adjacent to the park. 

"It's completely original," Comcast CEO Brian Roberts said during the company's Q4 earnings call Thursday. "It's maybe the most exciting project I've seen since we bought NBCUniversal. I think it's the first new entire theme park in decades in the U.S., and we're so excited."

In the U.S., Universal most recently opened its Volcano Bay waterpark in 2017. Its last theme park to open was Islands of Adventure in 1999.

Disney's most recent domestic theme park opening was Disney California Adventure in 2001. In Orlando, Animal Kingdom opened in 1998.

In Q4, theme parks once again performed well for Comcast, though there was some revenue softness in Orlando.

Theme park revenue was up 12.2% to $2.371 billion in the fourth quarter. Adjusted earnings before interest, taxation, depreciation and amortization (EBITDA) was up 11.6% to $872 million.

Comcast said the theme park segment generated its highest adjusted EBITDA on record in a fourth quarter and in a full year.

CFO Jason Armstrong said theme parks were driven by international growth in the quarter, especially at Universal Studios Japan, where demand remains high for Super Nintendo World. That park enjoyed higher attendance and per capita spending compared to the year prior, as well as prepandemic.

Domestically, Armstrong said, Universal Studios Hollywood is still benefitting from interest in Super Nintendo World. Attendance and per capita spending were both up compared to last year and prepandemic. It was the park's best fourth-quarter EBITDA in its history.

Comcast said revenue at Universal Orlando Resort was down from last year. However, Armstrong said it was still "substantially ahead" of 2019 prepandemic levels. 

On the earnings call, Comcast president Mike Cavanagh hinted that if Universal's regional theme parks are successful, more could be in the pipeline.

Universal is currently developing the Universal Kids Resort in Frisco, Texas, and Universal Horror Unleashed, a permanent horror experience at Las Vegas' Area15.

Universal is also in the midst of construction on Epic Universe. Capital spending was up 13% this year, Armstrong said, driven by higher capital expenditures. In its content and experiences segment, which includes theme parks, capital expenditures increased $1.2 billion for the year, largely driven by Epic Universe. 

Armstrong said he expected capital spending to remain elevated this year, then decrease in 2025.

An analyst on the call asked if Comcast will slow investment or reaccelerate following that 2025 decrease.

Speaking specifically of the Kids Resort and Horror Unleashed, Cavanagh said, "If we see these projects pencil out for good return, we'd be excited in the years that follow -- can't predict when -- to continue to give the parks and experiences business whatever capital it requires."

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