Since the launch of its first theme park in Orlando, Florida, in the summer of 1990, Universal Resorts has been competing with Walt Disney World, its main rival in the theme park sector, to attract theme park enthusiasts and emerge as a top contender. Universal’s theme parks have supported the growth of its parent company, Comcast, and served as an effective promotional tool, although these parks remain one of the company’s most challenging areas to maintain.
The fluctuating economic landscape has significantly impacted people’s ability to visit theme parks, creating a persistent uncertainty for the company. Universal allocates a portion of its budget to upkeep the Universal Resorts and cover labor costs, but regular maintenance, renovations, and innovations to maintain visitor interest require substantial financial investment.
Despite multiple challenges associated with managing theme parks, Universal has continued to make significant budgetary investments in this sector over recent years. These investments are demonstrated in the financial results reported by Comcast, which revealed that total revenue grew by over 2%, partly due to a rebound in attendance at Universal theme parks in the latter half of the previous fiscal year. During the fourth fiscal quarter of 2024, theme park revenues slightly increased by 0.1% compared to the prior year, although operating expenses increased by 2.4%, leading to a 3.9% decline in adjusted theme park revenue.
Comcast CEO Jason Armstrong addressed these expenses during an earnings call, pointing out that in 2024 the company faced strong competition in broadband, an unexpected temporary decline in theme park attendance, and substantial investments in key growth initiatives. These efforts aim to ensure long-term success for the parks despite rising costs, a strategy that has contributed to a 54.2% increase in Comcast’s total adjusted EBITDA for the fourth quarter of 2024.
In December 2023, Universal Destinations & Experiences, a division of Comcast, announced plans to develop its first theme park concept tailored for families with young children. The announcement, made during a groundbreaking in November, indicated that the Universal Kids Resort would have an immediate economic impact on the area by creating thousands of jobs, including over 2,500 new construction positions. However, in response to public anticipation, Universal announced updates for this project, clarifying that the Universal Kids Resort is under construction in Frisco, Texas, near Dallas, and is projected to open sometime in 2026, possibly in early summer.
Catering specifically to children between the ages of three and eight, the 32-acre resort will feature themed rides and immersive play areas based on popular franchises like “Shrek,” “Trolls,” “Minions,” “Puss in Boots,” “Jurassic World,” and Nickelodeon’s “SpongeBob SquarePants.” An adjacent 300-room hotel themed around Universal franchises will also be available to accommodate guests who wish to extend their visits.
While an exact opening date has not been provided, the resort is expected to open sometime in 2026, aligning with Universal’s previous park opening schedules.