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Universal reports record profit despite an 11 percent plummet in theme park attendance last year
Sott Powers | Sentinel Staff Writer
Posted March 31, 2006, 10:37 AM EST
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.
The privately held company managed to improve its bottom line by cutting spending and getting more income from several nontheme park operations such as hotel leases and corporate sponsorships.
"Our positive financial performance during 2005 is a credit to the strength and dedication of our management team and our employees," Bob Gault, president of Universal Orlando Resort, said in a written statement. "During a year that included some attendance challenges, we were able to control our costs and increase our revenue-per-guest so that we actually grew our operating income. We are a stronger business today because of the work we did during 2005."
The combined paid attendance for the company's two Orlando parks, Universal Studios and Islands of Adventure, was reported at 10,772,000. That's an 11 percent drop from 2004's record attendance. The decline also is steeper than observers had expected. Amusement Business, a trade magazine, reported in January an estimated 8.5 percent drop in attendance for Universal's Orlando parks last year.
Universal blamed the drop in attendance on several factors, including competition with Walt Disney World, which ran a strong marketing campaign last year, gas prices and consumer sentiment.
The workforce was among the cuts the company made. The company reported it had 12,900 employees in 2005, which was down 700 workers from what Universal said in its 2004 report. The company's workforce numbers reflect a 9 percent cut in salaried workers and a 5 percent cut in hourly wage employees last year.
Scott Powers can be reached at spowers@orlandosentinel.com or 407-420-5441.
Sott Powers | Sentinel Staff Writer
Posted March 31, 2006, 10:37 AM EST
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.
The privately held company managed to improve its bottom line by cutting spending and getting more income from several nontheme park operations such as hotel leases and corporate sponsorships.
"Our positive financial performance during 2005 is a credit to the strength and dedication of our management team and our employees," Bob Gault, president of Universal Orlando Resort, said in a written statement. "During a year that included some attendance challenges, we were able to control our costs and increase our revenue-per-guest so that we actually grew our operating income. We are a stronger business today because of the work we did during 2005."
The combined paid attendance for the company's two Orlando parks, Universal Studios and Islands of Adventure, was reported at 10,772,000. That's an 11 percent drop from 2004's record attendance. The decline also is steeper than observers had expected. Amusement Business, a trade magazine, reported in January an estimated 8.5 percent drop in attendance for Universal's Orlando parks last year.
Universal blamed the drop in attendance on several factors, including competition with Walt Disney World, which ran a strong marketing campaign last year, gas prices and consumer sentiment.
The workforce was among the cuts the company made. The company reported it had 12,900 employees in 2005, which was down 700 workers from what Universal said in its 2004 report. The company's workforce numbers reflect a 9 percent cut in salaried workers and a 5 percent cut in hourly wage employees last year.
Scott Powers can be reached at spowers@orlandosentinel.com or 407-420-5441.
