Universal Q2 2026 Results

[tommyhawkins]

Revenue would have gone up, because you now have to buy a ticket for 3 parks, not two, that would be up to 50% increase in ticket revenue. Many different businesses put their prices up immediately after the pandemic even though actual visitors dropped and it looked like they weren't any worse off.

The thing they feared- Epic cannibalising IOA/USF appears to have happened, but the plan was originally to have a few new things open in north campus to balance out the new park then epic got more expensive. They're only just getting round to building those now.

This should act as a cautionary tale for the dumbass idea to put Orlando attractions in Universal Studios London. Why rob Peter to pay Paul?

 

[OhHaiInternet95]

If COVID doesn't happen, if the current economy doesn't happen... you probably get those few years worth of growth.

Bad timing for Epic.

I mean, I feel like that was easy to see coming. Building a new park in the first place was an incredibly gutsy (or a different part of the body-sy) move given the fundamental problems that have existed for a while now.

F&F coaster is guaranteed to happen but of everything else up the pipeline, what’s most likely to survive and what’s most likely to get cut?

 

[MAC]

I mean, I feel like that was easy to see coming. Building a new park in the first place was an incredibly gutsy (or a different part of the body-sy) move given the fundamental problems that have existed for a while now.

F&F coaster is guaranteed to happen but of everything else up the pipeline, what’s most likely to survive and what’s most likely to get cut?

@Evan (because I can’t figure out multi-quote in editing and don’t want to double-post): for me the most twisted irony is that a certain individual who calls Florida their home state is behind a lot of this.

I’ve been wondering when CapEx cuts are coming. We have lived in unprecedented times with UO, building new lands, attractions, refurbishments, revamps of CityWalk, new parks, new hotels, etc.

The output has been insane. It was never going to last.

 

[Mad Dog]

I’ve been wondering when CapEx cuts are coming. We have lived in unprecedented times with UO, building new lands, attractions, refurbishments, revamps of CityWalk, new parks, new hotels, etc.

The output has been insane. It was never going to last.

They can't really cut and keep their present market share in Orlando. WDW has some tremendous attractions/lands opening in the next four years. Epic newness is already wearing off. It's like an arms race now. If Universal pauses, they lose. Whether they want to or not, they need to build some dynamic new D/E tickets soon, and not just lightly themed outdoor coasters.

 

[OrlLover]

I wonder what there Orlando attendance benchmarks are internally?

Softening vs flat is interesting discussion to be had as it seems the parks were a little bit slower than they would have liked but not completely stagnant like say Japan.

The economy is a major factor and won’t be solved anytime soon with the current politics in play.

However those expansions in the works for Epic should really help that park out. It’s clearly doing well so continue the momentum.

The purse strings are really tightening at the moment for the average middle class family so unfortunately the number of visitors is probably gonna be down until the holidays.

 

[MAC]

They can't really cut and keep their present market share in Orlando. WDW has some tremendous attractions/lands opening in the next four years. Epic newness is already wearing off. It's like an arms race now. If Universal pauses, they lose. Whether they want to or not, they need to build some dynamic new D/E tickets soon, and not just lightly themed outdoor coasters.

It will be interesting to see what happens at D23 next month and what they slow down on, in hopes of the economy improving, visitor numbers increasing, etc. If Disney starts to pull back, delay some openings, not talk about certain attractions that were talked about in the past, that will give UO some breathing room.

Also, what is the value of increasing 1% and what are the costs of increasing 1%? Especially if the pie is going to be smaller for a period of time?

 

[Mad Dog]

I wonder what there Orlando attendance benchmarks are internally?

Softening vs flat is interesting discussion to be had as it seems the parks were a little bit slower than they would have liked but not completely stagnant like say Japan.

The economy is a major factor and won’t be solved anytime soon with the current politics in play.

However those expansions in the works for Epic should really help that park out. It’s clearly doing well so continue the momentum.

The purse strings are really tightening at the moment for the average middle class family so unfortunately the number of visitors is probably gonna be down until the holidays.

Yeah, gas prices and theme park rising high costs as a deterrent to long travel (auto/airlines) can't be over estimated. When I was making my predictions of a very soft summer coming (back in April/May) that was what I was looking at. Yes, high earners are doing OK, but the rest of the population is dipping into their savings, which govt. and business stats are showing are at the lowest percentage level in the past decade. The near future for Orlando parks is going to be dependent on some stuff that isn't in their control, like the Iranian war problems. The only way to react in the short term is to run promotions that cuts guests costs. Universal is already doing that with the super cheap $200 local ticket good until mid December this year, some declining hotel prices, and the cheaper AP days to Epic. There's not much else that they can do except pray for a strong HHN season. The next six months are very iffy, especially if the Iran fiasco continues.

Attendance benchmarks are probably well below what they envisioned before they opened Epic. I'm sure Comcast had no idea they'd have to put a ceiling on Epic daily attendance due to under capacity and breakdown issues. Now, it probably doesn't matter since it doesn't seem like Epic comes very close to those max numbers anyway. Nice beautiful park but a lot of poor visitor experiences has to have had a negative effect. Anyway, I'd guess Universal is reevaluating, and lowering, projections for the near future. And it doesn't help that the international parks are so weak right now. Q3 looking like it might be a bit shaky.

 

[Mad Dog]

For whatever it’s worth, at least out of California, flights to Orlando are actually pretty reasonable if you’re flexible on your dates. They can be downright cheap if you’re willing to fly Frontier. But I recognize different people have different situations.

I don’t know if I’m surprised that they’re not getting more of a bump from Epic. Possible people are putting off vacations until things chill out, while those more plugged into what’s coming are waiting for the new Disney stuff. Who knows.

Rarely do I ever watch chats online, I just don't have that kind of empty time....But....I saw that you and Robert Niles were having a discussion on the Universal Q2 report. So I found some time and listened to it. Rarely do I see something and 100% agree with the opinions expressed, but I have to say you were right on and I 100% agree with what you and Robert said. It's refreshing to listen to two theme park insiders who actually know and understand what they are talking about from a 'business' standpoint. Also, I give special credit to both of you for understanding the true China/Japan situation/history.

Credit for a job well done.

 

[Jake S]

Credit for a job well done.

Appreciate that, sir! A rare occurrence of two of my biggest interests (foreign affairs and theme parks) colliding.

 

[OhHaiInternet95]

Yeah, gas prices and theme park rising high costs as a deterrent to long travel (auto/airlines) can't be over estimated. When I was making my predictions of a very soft summer coming (back in April/May) that was what I was looking at. Yes, high earners are doing OK, but the rest of the population is dipping into their savings, which govt. and business stats are showing are at the lowest percentage level in the past decade. The near future for Orlando parks is going to be dependent on some stuff that isn't in their control, like the Iranian war problems. The only way to react in the short term is to run promotions that cuts guests costs. Universal is already doing that with the super cheap $200 local ticket good until mid December this year, some declining hotel prices, and the cheaper AP days to Epic. There's not much else that they can do except pray for a strong HHN season. The next six months are very iffy, especially if the Iran fiasco continues.

Attendance benchmarks are probably well below what they envisioned before they opened Epic. I'm sure Comcast had no idea they'd have to put a ceiling on Epic daily attendance due to under capacity and breakdown issues. Now, it probably doesn't matter since it doesn't seem like Epic comes very close to those max numbers anyway. Nice beautiful park but a lot of poor visitor experiences has to have had a negative effect. Anyway, I'd guess Universal is reevaluating, and lowering, projections for the near future. And it doesn't help that the international parks are so weak right now. Q3 looking like it might be a bit shaky.

So which projects are safest and which are most likely to be cut?

 

[Mad Dog]

So which projects are safest and which are most likely to be cut?

I forgot my crystal ball. But... we know the F&F coaster is on for sure. Probably yes to Epic expansions in Monsters and Potter. They know they have to do that.....They can drag their feet on Supercharged replacement, though if they decide on just an overlay, that would probably be budget friendly. ....We still don't know if they got an extension on the Simpsons contract, or not. ....LC at IOA will take a good while anyway....They're smart in adapting the WDW model of refreshing existing attractions (Jurassic & Horror Make Up and perhaps ET). They really can't stand still since WDW has sooo much terrific stuff coming due in the next few years. But the near future does look a bit tenuous. They really need to figure out that AP problem with Epic before they bleed anymore AP's. ....Those delays on good new attractions for USF and IOA are biting them in the butt now. They kind of painted themselves in a corner, so it would be disastrous if they went into a full cost cutting mode. They have no choice but to bring new significant attractions on board so they don't lose market share to an expanding WDW.

 

[Parkscope Joe]

Just gonna throw this one out here too: World Cup.

 

[Cup_Of_Coffee]

Just gonna throw this one out here too: World Cup.

With zero games in Orlando or Tampa Bay.

 

[Brian G.]

With zero games in Orlando or Tampa Bay.

I think that’s the point. People were traveling everywhere else in the US.

 

[Disneyhead]

Anyone coming from Europe to the US this year weren't going to theme parks. There was some sports ball event that sucked up all the international monies. Canadians and South Americans are avoiding the USA like we have a mass EXPLOSIVE! diarrhea event happening across the country.