Universal posts $28 million 3rd quarter profit

[pheneix]

With visitors continuing to spend more money on merchandise, and with a break in interest rates, Universal Orlando overcame another dip in attendance to post a $28 million profit during its third financial quarter this year.

The resort's parent company, Universal City Development Partners reported that just under 3 million people visited Universal Studios and Islands of Adventure combined during the three month period ending Oct. 1. That is down 5 percent from the 3.1 million people that visited during the same quarter in 2005. Those totals include people who arrived for free during Universal's various promotions. Paid attendance also was down 5 percent during the quarter, to just under 2.8 million.

http://www.orlandosentinel.com/busi...6,0,5161257.story?coll=orl-business-headlines

So they are continuing to cut costs faster than revenues fall. This is working out a little longer than I thought it would for them. They still need to get something BIG into their parks ASAP though.

 

[CTXRover]

They can only continue to cut costs and post profits before either the product severely suffers (which I know some believe has already happened) or they reach a point where cost cutting won't be enough anymore.

Its a shame that UO continues to freefall in their attendance for the second or third year in a row now. They have a very good product imo, but it takes money to make money and they need to invest in the parks NOW. In comparison, WDW experienced a 5% increase in attendance during the same time period, and has been seeing increases consistently for several years now.

 

[slappy magoo]

Ah, but that's the catch-22, isn't it? 28 million dollars profit in a quarter is nothing to sneeze at, but for Universal Studios or IOA to come up with something so big and awesome that people would forgo time at WDW to experience it, they're looking at spending 5x-10x this amount. So they wait, and milk as much as they can out of what they have. But then more and more people might avoid going to UO, which will result in lower profits, maybe eventually they'll start posting losses, and at that point, they won't want to loosen up the purse strings, what with no money at all coming in.

So, spend the money now and risk severerly cutting into profits for years, OR wait until you absolutely have to and risk alienating who-knows-how-many potential guests with outdated product for too long.

 

[DigitalDisney]

They need to follow WDW and put an Everest-scale attraction over at IOA (preferably something that doesn't go down if the weather is lousy). Everest has done wonders for AK, and I'm sure a comparable attraction would also help IOA.

The JP Jeep Adventure would sure be a nice addition.

 

[JLW11Hi]

Take some risks and spend some money on some awesome stuff. It wouldn't be careless to take a risk in this manner. Heck, people shouldn't even call it a "risk" to invest in something big and awesome. If they put the needed effort into a new big project, then higher attendance and guest satisfaction should be expected. Universal obviously has the heads up on Disney as having the parks that are not afraid to have some big, bada$$ rides for the older crowd. So if they keep promoting this image, then Universal should put up a good competition for Disney.

But apparently, as I have been reading in other people's comments on the status of the resort, Universal should first, above all other things, work on improving its guest service and friendly atmosphere to bring it to the level of Disney. This should be at the top of the list. I personally had no issues when I last went...well, except for that HHN I went to on a Saturday....that was out of control.

Did Return of the Mummy pull in more crowds for Universal when it opened? I really liked the ride.

 

[JROK]

Did Return of the Mummy pull in more crowds for Universal when it opened? I really liked the ride.

Yes it did. The year Mummy openned, 2004, was the highest attendence Universal has ever seen...

 

[IOACentralRadio]

I think next year will be pretty big as well. You'll have BMG opening up, and whatever is going to replace BTTF (simpsons) opening up. Should be a busy year, however, IOA is still getting no love. Can we finally see that damn JP ride come to life, please? Invest and ye shall be rewarded....especially if the ride is twice the ride as rotm.

 

[JROK]

I think next year will be pretty big as well. You'll have BMG opening up, and whatever is going to replace BTTF (simpsons) opening up. Should be a busy year, however, IOA is still getting no love. Can we finally see that damn JP ride come to life, please? Invest and ye shall be rewarded....especially if the ride is twice the ride as rotm.

What do you get when you mix Dinosaur, Spiderman and RotM? NEW JP RIDE!! One can only wish...

 

[Legacy]

What do you get when you mix Dinosaur, Spiderman and RotM? NEW JP RIDE!! One can only wish...

The cost of that thing would be more than Universal has ever spent on an attraction before...

Honestly, I would LOVE to see Uni do something different in Jurassic Park for IoA.

Something like say... putting in a Kuka RoboCoaster and theming it to a helicopter flight... especially if an Aviary is involved. It would be an adrenaline packed answer to Soarin, instead a re-theme of RotM.

 

[IOACentralRadio]

What do you get when you mix Dinosaur, Spiderman and RotM? NEW JP RIDE!! One can only wish...

I'm hoping the rumors of the Jeep ride are true...to an extent. I really dont want to hear the comparisons to disney's Dinosaur, that I know will come...even though they will be most likely completely different. But, I digress....a coaster would be nice, though not fitting in theme...so a jeep ride would make the most sense. But I really want something cool like jumping AA dinos on the hood snapping in your face. Or, being "picked up" in the jaws of Spinosaurus (T-rex is way too played). Something....hell I'd settle for "Guess what Hammond has in his pocket! Go on, stick your hand in and find out"

 

[Legacy]

Something....hell I'd settle for "Guess what Hammond has in his pocket! Go on, stick your hand in and find out"

That would be too much like Triceratops Encounter... :lookaroun

 

[kcnole]

Universal should first, above all other things, work on improving its guest service and friendly atmosphere to bring it to the level of Disney.

I've been to Universal three times this year and found their CM's to be just as friendly as those at Disney. I really don't understand the complaints with their CM's. They're no better or worse than what Disney has.

 

[NemoRocks78]

I've been to Universal three times this year and found their CM's to be just as friendly as those at Disney. I really don't understand the complaints with their CM's. They're no better or worse than what Disney has.

Quite true....

 

[Michael72688]

I've been to Universal three times this year and found their CM's to be just as friendly as those at Disney. I really don't understand the complaints with their CM's. They're no better or worse than what Disney has.

Thank you, its good to know that employees like myself who do work hard are not constantly bashed for not being as good as Disney's. I will admit however, Universal has some questionable ones. So to all of you who dont bash every Universal employee you have encountered, Thank you. As for a new ride, I really think we are gonna have to wait a very long time, I mean it is Universal and they just opened one at IOA so we will probably wait another 6 years for one there while USF keeps getting new things.

 

[JLW11Hi]

I've been to Universal three times this year and found their CM's to be just as friendly as those at Disney. I really don't understand the complaints with their CM's. They're no better or worse than what Disney has.

Like I said, I had no problem at all with the employees at Universal when I was there last. I am just looking at some of the coments posted by people who visit there more regularly than I.

 

[kcnole]

I visit all the time and have had nothing but great service. Be careful where you read your comments from. Some people on the Disney boards wouldn't have anything nice to say about Universal if they won 1 million dollars upon entering the park.

Something like say... putting in a Kuka RoboCoaster and theming it to a helicopter flight... especially if an Aviary is involved. It would be an adrenaline packed answer to Soarin, instead a re-theme of RotM.

The last thing IOA needs is another coaster. It's already hard to sell this park to families as it is. If they put another coaster in then it gets its fate sealed as just another thrill park with good theming and drives the families further away. What it needs is more rides that the whole family can enjoy together. The jeep ride could be that if its no more thrilling than say Dinosaur. I would really, really, really like to see a good Jeep ride come in there. I'd also like to see the Discovery Center get a good refurb. It has such potential to be a great attraction into itself but it falls so very short.

 

[Legacy]

The last thing IOA needs is another coaster. It's already hard to sell this park to families as it is. If they put another coaster in then it gets its fate sealed as just another thrill park with good theming and drives the families further away. What it needs is more rides that the whole family can enjoy together. The jeep ride could be that if its no more thrilling than say Dinosaur. I would really, really, really like to see a good Jeep ride come in there. I'd also like to see the Discovery Center get a good refurb. It has such potential to be a great attraction into itself but it falls so very short.

I think that if a Kuka is programed right it could be great for the entire family. I would honestly rather see something other than the Jeep ride because there are so many attractions that it can be compared to, and unless Uni goes all out on it all the comparisons would be bad.

I would much rather see a new, more thrill oriented version, of HelicopTours. It would be family oriented in nature, but instead of created a competing ride to Revenge of the Mummy, it would create a competing ride to Soarin'.

And I agree on the Discovery Center. I remember when the park first opened how lively the place was. Now it seems to be a ghost town when I go by.

 

[Lynx04]

I visit all the time and have had nothing but great service. Be careful where you read your comments from. Some people on the Disney boards wouldn't have anything nice to say about Universal if they won 1 million dollars upon entering the park.



The last thing IOA needs is another coaster. It's already hard to sell this park to families as it is. If they put another coaster in then it gets its fate sealed as just another thrill park with good theming and drives the families further away. What it needs is more rides that the whole family can enjoy together. The jeep ride could be that if its no more thrilling than say Dinosaur. I would really, really, really like to see a good Jeep ride come in there. I'd also like to see the Discovery Center get a good refurb. It has such potential to be a great attraction into itself but it falls so very short.

I don't understand why people say rollercoasters will drive families away. It is like saying a familiy is only a family if it has kids under 5, kids that are not big enough, or to scaried to go on a rollercoaster. Some families are have no kids, or have few kids. Rollercoasters in my opinion are family friendly depending on what incompasses as your family. Their isn't anything at Universal that I wouldn't consider to be a family attraction, except for some of the venues at City Walk.

 

[MagliteL13]

It's all about the family oriented rides like soarin and Safaris for profit. The ride, itself, won't generate a profit but the profit from Merch and Food will. Who has the most money? Where are they most likely to spend it? College kids who want roller coasters? Or the stereotypical family of 4? I vote a family oriented ride, something original. No robo-coaster.

I'm not familiar with the jeep adventure concept.....

Jeremy
RotM Attendant

 

[JROK]

It's all about the family oriented rides like soarin and Safaris for profit. The ride, itself, won't generate a profit but the profit from Merch and Food will. Who has the most money? Where are they most likely to spend it? College kids who want roller coasters? Or the stereotypical family of 4? I vote a family oriented ride, something original. No robo-coaster.

I'm not familiar with the jeep adventure concept.....

Jeremy
RotM Attendant

I'm with you on this one... A great family ride...