Common leans into theme parks with multibillion-dollar Epic Universe, whilst financial uncertainty looms

ORLANDO, Florida — With the grand opening of Epic Universe on Thursday, Comcast is positioning its Common Studios Orlando Resort as a vacation spot, not a pit cease.

For years, Common’s Florida-based resort has performed second fiddle to rival Disney. Whereas it boasted three theme parks — Common Studios Florida, Common Islands of Journey and water park Volcano Bay — and a handful of lodges, it wasn’t considered as a vacation spot.

“This fourth gate adjustments the whole lot,” stated Karen Irwin, president of Common Orlando Resort. “It not solely cements us as greater than a full-week vacation spot trip, however it additionally provides three lodges to the resort.”

Epic Universe opens at a time of financial uncertainty within the U.S., as President Donald Trump has instituted a variety of ever-changing tariffs which have stoked fears a couple of world commerce battle, despatched the inventory market by itself roller-coaster journey and has threatened to tip the American economic system right into a recession.

The U.S. has already seen a stoop in air journey, notably from worldwide vacationers. Whereas these visitors are small subset of total guests to central Florida, they usually spend an extended time period staying at lodges and visiting theme parks and spend more cash on meals and merchandise.

“When there’s shopper uncertainty, the parks are inclined to really feel it,” Jason Armstrong, chief monetary officer at Comcast, stated throughout a MoffettNathanson convention final week. “They have an inclination to snap again actually shortly, however they do are inclined to really feel that.”

“On parks, whether or not it is present attendance traits or bookings — which, bookings aren’t an ideal window, however they’re the window you’ve — there’s nothing that is exhibiting up within the bookings traits thus far that will point out any stress,” he added. “That is true in Orlando. It is true internationally.”

Those that are most budget-conscious could have already been priced out of the theme park market, Craig Moffett, co-founder and senior analyst at MoffettNathanson, advised CNBC.

“There was a time when visiting a theme park was a mass-market trip,” he stated. “It is arguably too costly for that to be the case anymore. The tickets alone can run a household a thousand {dollars} or extra for a multiday go to, and that is earlier than lodges and meals. Maybe that is why we’re not seeing as a lot financial sensitivity as we’d have anticipated.”

Despite these financial headwinds, Epic Universe is anticipated to attract in thousands and thousands of tourists, bolster theme park income for Common, in addition to Disney simply down the freeway, and deliver billions of {dollars} to the native economic system.

It is also the beginning of a brand new period of theme park improvement for Common.

It took practically a decade for Comcast to deliver Epic Universe to life. From shopping for up land its earlier administration had bought off, to Covid-related development delays, this 750-acre improvement is the primary new theme park to open in Orlando in 25 years.

Epic Universe, first introduced in 2019, represents the biggest single funding Comcast has ever made in its theme parks enterprise and in Florida total, CEO Brian Roberts stated on the time. That determine is rumored to be round $7 billion, although the precise quantity is unclear.

The park options 5 themed worlds: The Wizarding World of Harry Potter – Ministry of Magic, Tremendous Nintendo World, The way to Practice Your Dragon – Isle of Berk, Celestial Park and Darkish Universe.

Comcast’s funding in Epic Universe is a part of a wider push to develop its theme park and experiences enterprise. The corporate already has plans to open a year-round Hollywood Horror Nights themed expertise in Las Vegas later this yr, a kid-friendly park in Frisco, Texas, in 2026, and a U.Okay.-based park in 2031.

“Comcast is leaning into the theme park phase for a easy motive: It is working,” Moffett stated. “Development is nice and returns on funding are engaging, and the theme parks pay all types of strategic dividends by deepening clients’ relationships with their favourite Common characters.”

Whereas theme parks are a smaller income driver than Comcast’s media division, the division is worthwhile and has vital potential for progress. In 2024, theme parks accounted for rather less than 20% of Comcast’s total income, however about 44% of its adjusted earnings earlier than curiosity, taxes, depreciation and amortization.

For comparability, Disney’s experiences division, which incorporates parks, represented 37% of the corporate’s income in fiscal 2024, smaller than its leisure enterprise, however accounted for practically 60% of its web revenue.

Common’s theme park funding and enlargement come as Disney has pledged to spend $60 billion over a decade to enhance, innovate and increase its amusement places. New developments, whether or not they be parks, lands or rides, spark wholesome competitors between the businesses to create extra compelling and modern points of interest to lure in visitors.

“That is the primary new theme park in Orlando in 1 / 4 century, and people 25 years have seen breathtaking technological advances,” Moffett stated. “For that motive alone, it is a massive deal.”

The corporate has acquired 161 patents for its improvements at Epic Universe, together with new animated results, journey designs and robotics. Throughout the brand new park, there are trackless journey techniques, augmented actuality and high-resolution projections. In complete, the Common Locations and Expertise division holds 3,300 patents globally.

Main improvements will be seen in rides like Monsters Unchained: The Frankenstein Experiment within the Darkish Universe portal and Harry Potter and the Battle on the Ministry on the latest Wizarding World land that transports visitors from Twenties Paris to the Nineties British Ministry of Magic.

Additionally it is obvious in new leisure reveals like “The Untrainable Dragon” with the The way to Practice Your Dragon – Isle of Berk portal, the place an animatronic Toothless, with a wingspan of practically 27 ft, soars over the viewers.

“It is a really momentous event for us, and only a vital milestone in that continuum of our improvement,” stated Mark Woodbury, CEO of Common Locations and Experiences. “The longer term is tremendous shiny. … There’s a number of room for enlargement. We’re already fascinated with how that performs out. New points of interest coming, new mental property coming, all a part of our philosophy to develop our enterprise by increasing our current footprint.”

Woodbury famous that there’s loads of area on the Epic Universe campus to deliver different worlds into the fold.

The corporate has loads of mental properties to faucet into, together with current theme park manufacturers like Jurassic Park and Minions in addition to untapped franchises like “Depraved.”

The place Common executives additionally see power is with its accomplice manufacturers. Throughout its home and worldwide theme parks, the corporate has delivered to life lands and points of interest primarily based on mental property from different studios like Harry Potter, Nintendo and Transformers.

“There is no creator on the market that would not prefer to see their their IP delivered to the world in a approach such as you see in these parks,” stated Mike Cavanagh, president of Comcast. “It truly enhances the IP for additional use of the creator.”

Common’s theme park expansions additionally broaden its attraction to extra age segments with the The way to Practice Your Dragon and Tremendous Nintendo worlds.

“Prior to now, Disney actually had the underneath 10-years-old phase roughly to themselves,” Moffett stated. “Common catered to tweens. The brand new Epic Universe park brings entire worlds to life for youthful kids.”

Extra parks, extra merchandise, extra meals choices and extra visitors to cater to open up extra alternatives for Common to generate income, not simply in Florida, however globally. The corporate has chosen franchise IP that isn’t solely beloved, however evergreen, Comcast executives stated. It has additionally up to date characters and tales, like its traditional monsters, for a contemporary age.

“We have mushy opened for some time, and that offers you a lens into type of what individuals are going to do within the parks,” Armstrong stated. “And exit surveys have been nice. The critiques of it have been terrific.”

Disclosure: Comcast is the guardian firm of NBCUniversal and CNBC.