Universal Orlando reports record profit

Posted | Contributed by supermandl

Despite an 11 percent plummet in theme park attendance last year, the parent company of Universal Orlando is reporting an increase in profit to record levels in 2005. In its annual report filed this morning with the U.S. Securities and Exchange Commission, Universal City Development Partners reported a $141 million operating profit in 2005, up from the previous record of $137 million in 2004.

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Why that evil corporation! They made a profit!

;)

~Rob Willi

Well that's awesome. I hope they continue to be one of the best all around amusement parks in the world.

We kind of just started touching n this idea a few podcasts back, but this is an example of multiple ways to define success. Many parks spout attendance numbers as 'success', but I'd bet in the end they'd rather have the money.

Think about it, Universal only brought in 9 people for every 10 they did last year and still made $4 million dollars more.

Granted this was most likely not the plan, but how can you not love those numbers. I wouldn't be surprised if more and more parks begin pricing accordingly to drive more profit from fewer guests. (think what SF is doing this year) Operational costs tend to drop, guests have a better time and the park increases profit.

It's the future of theme parks, I tell ya...the future! :)

I wonder what the breakdown of fixed/marignal costs are...I've always assumed parks are fixed-cost-dominated, but perhaps not.

I know how they can do even better.

They can sell two memberships a year for 100 million each to warren buffet and bill gates.Then they could let go most of the employee's and not have to worry about crowds.

I know i am taking this to the extreme but were do you draw the line.What comes next is to run the season passes up to 500-600 dollars range to keep out the low life locals and Enthusiasts .

They want upscale families who can afford to drop 700-1,000 dollars a day.Not low to middle income families who picnic out of the trunk of the car and stay in the 35.00 a night days inn across the street.

Kevin*** This post was edited by kevin38 4/3/2006 11:58:09 PM ***

^^^I'll go ahead and agree with you if Six Flags can bring their product on par with Universal. Good luck.

^ Me 2!

SF's *product* come July 1 will tell the tale....until then, they can only HOPE to turn the same trick as Universal...and if they succeed at SF, the pot of gold at the end of the rainbow is HUGE... ;)

It's an interesting statement about not wanting low to middle income families. The difference in the make-up of a Six Flags crowd and a Universal crowd are noticably very, very different.

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