In a historic development, Universal Parks and Resorts generated higher revenue growth compared to Walt Disney Parks and Resorts for the second quarter of 2022, according to figures from both companies.
Universal’s theme park division brought in $2.21 billion in the quarter ending in June, a 22% increase from the same period last year. Disney’s parks unit revenue grew 20% to $2.2 billion – 2 percentage points below Universal’s growth rate. This marks the first time Universal’s parks have outpaced Disney’s in quarterly revenue growth.
Industry experts attribute Universal’s standout performance primarily to the opening of Super Nintendo World at Universal Studios Hollywood. The highly immersive and visually stunning land based on Nintendo video game characters and worlds opened in early 2022, significantly boosting attendance after two years of pandemic closures and restrictions. Super Nintendo World was also cited as the main driver behind a 36% rise in attendance at Universal Studios Japan for the quarter.
Meanwhile, Universal Orlando Resort did see lower attendance compared to 2019 levels, attributed to limited entertainment offerings. However, revenue still topped pre-pandemic figures.
Universal’s theme park division has accelerated openings of major new attractions and lands in recent years to drive growth. Super Nintendo World follows Beijing’s Universal Studios, which opened last year, and 2017’s Volcano Bay water park in Orlando. Upcoming massive projects include Epic Universe, a new theme park under construction in Orlando. Set to open in 2025, Epic Universe will feature Nintendo and other popular Universal franchises across multiple themed lands.
The impressive quarter does not necessarily indicate Universal will overtake Disney as the world’s most visited theme park operator on an annual basis. Disney’s empire still dwarfs Universal’s; Disney’s parks worldwide draw over 150 million guests annually, more than double Universal’s attendance.
However, it does reveal Universal’s strategy of adding high-profile immersive experiences based on popular entertainment IP is paying off. Industry experts say it’s a wake-up call for Disney, demonstrating the power of investing in exciting new attractions rather than relying on traditional parks and aging infrastructure.
Disney Boasts an Arsenal of Upcoming Projects
While Universal’s Super Nintendo World provided a big boost last quarter, Disney is by no means resting on its laurels. The media and entertainment giant has unleashed a barrage of new lands, rides, shows and hotels in recent years, though large-scale projects were delayed by the pandemic.
Major Disney projects that have opened since mid-2021 include Avengers Campus lands at Disneyland Resort and Disneyland Paris, drawing Marvel fans. Remy’s Ratatouille Adventure also opened at EPCOT, while Magic Kingdom’s TRON roller coaster debuts this fall.
Still to come: a Moana-themed water playground at EPCOT; a Tangled area in Tokyo DisneySea; Arendelle, a Frozen land at Hong Kong Disneyland; and a massive Star Wars-themed hotel adjunct to Disney World. But the biggest weapon in Disney’s arsenal is its trio of Star Wars: Galaxy’s Edge lands. The immersive 14-acre lands at Disneyland, Disney World and Disneyland Paris place guests onto a Star Wars planet complete with rides and interactive elements.
Disney will also lean on its unmatched IP and legacy of beloved animated films and characters. For example, Mickey’s Toontown at Disneyland is getting a major overhaul to introduce characters from modern Disney and Pixar hits like Zootopia and The Princess and the Frog while maintaining nostalgia.
Pandemic Impact and Recovery Outlook
The pandemic dealt a major shock to the finances of both theme park empires, as extended closures evaporated revenue. Disney estimated losses of $6.9 billion in 2020 due to the parks shutdown.
Both have bounced back strongly since reopening, buoyed by pent-up demand for travel and outdoor entertainment. Disney parks reached pre-pandemic levels of profitability in 2021, while Universal’s parks unit delivered record quarterly earnings at the end of 2021.
However, the pandemic may have leveled the playing field. Disney will have to work harder to revive growth after two years of stagnation from closures and restrictions. Meanwhile, Universal had the advantage of opening huge new attractions like Super Nintendo World right as guests returned.
Still, Disney parks tend to see higher attendance when new Star Wars lands open, suggesting future openings could shift the revenue balance, especially when the economy recovers further. Disney’s unrivaled IP vault makes it unlikely Universal can sustain superiority for the long term.
But with tourism rebounding sharply in 2022, the rest of this year will provide a telling look at whether Universal’s creative investments will allow it to go toe-to-toe with Disney’s star power. For now, Universal is enjoying a moment in the sun.
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