Comcast reported that, excluding costs related to its soon-to-open Universal Beijing Resort, its theme parks division broke even in the fourth quarter for the first time since the coronavirus crisis struck. The news was encouraging, given the fact that its Universal Studios Hollywood park remains closed due to the pandemic and attendance at its other parks remains restricted by capacity limits.
"What
we saw this fourth quarter, especially in Orlando, gives us even more
conviction about the momentum that our theme parks will experience when
we reach a sustainable recovery," chairman and CEO Brian Roberts said during a Thursday morning earnings call. "We may experience some
near-term setbacks with the most recent pickup in Covid cases, but I am
optimistic as ever about the long-term trajectory of this very special
business."
Roberts said he was pleased with how
quickly Universal was able to safely open its parks
in Orlando and Japan, and attendance has steadily increased since then.
Theme parks, part of Comcast's NBCUniversal division, recorded $579 million in revenue in the fourth quarter of 2020, down nearly 63% from $1.56 billion in the fourth quarter of 2019. Earnings before interest, taxes, depreciation and amortization recorded a $15 million loss, down 102% from $636 million in the fourth quarter of 2019.
CFO Michael Cavanagh said those results include $45 million in Universal Beijing Resort pre-opening costs. It also reflects the continued closure of Universal Studios Hollywood.
Headed into the new year, Cavanagh said the company expects the usual seasonal lightness of attendance in the first quarter. New Covid restrictions in Japan have also caused Universal to pause the opening of Super Nintendo World there.
However, Universal Beijing is still on schedule to open this summer. Pre-opening costs will increase to $300 million in the first half of 2021, Cavanagh said.