Comcast NBCUniversal’s Theme Parks Saw Record Attendance in 3Q15
Analyzing Growth Drivers and Threats for Comcast's NBCUniversal
Universal Theme Parks
Comcast (CMCSA) owns and operates theme parks under the Universal brand in Orlando and Hollywood. The company also licenses its brand to third parties to own and operate Universal theme parks in Osaka, Japan (EWJ) and on Sentosa Island in Singapore (EWS). In addition, Comcast owns a water park called Wet ‘n Wild in Orlando.
Primary revenue drivers
The Theme Parks segment primarily generates revenues from attendance at its theme parks and per capita guest spending including ticket prices and expenditure on food, beverages, and merchandise at the theme parks. The business also receives licensing fees from third parties that operate theme parks in Japan and Singapore.
Theme Parks segment performance in 3Q15
The Theme Parks segment had revenues of $896 million in 3Q15, an increase of 14.1% over the corresponding quarter last year. Record attendance fueled the revenue growth at Comcast’s theme parks including Orlando’s Wizarding World of Harry Potter-Diagon Alley and Fast and Furious: Supercharged.
The segment’s OIBDA (operating income before depreciation and amortization) in 3Q15 was $458 million, an increase of 14.1% over the corresponding quarter last year. The higher revenues in the Theme Parks segment were offset by a rise in operating costs including $18 million in transaction costs related to Comcast’s plans to develop a theme park in China.
Comcast makes up 2.6% of the PowerShares QQQ Trust Series 1 ETF (QQQ). QQQ has 4.4% exposure to the television and radio sector. QQQ has 4.8% of its holdings in Alphabet (GOOG), 5.9% of its holdings in Amazon (AMZN), and 4.4% in Facebook (FB).
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