How Disney Views Universal Epic Universe's Opening: Insights from CFO Hugh Johnston

7 hours ago in "The Walt Disney Company"

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Posted: Thursday November 14, 2024 9:10am ET by WDWMAGIC Staff

Disney CFO Hugh Johnston briefly addressed Universal EPIC Universe's Memorial Day Weekend opening and its potential impact on Walt Disney World during Disney's Q4 Financial Results Conference Call today.

Universal Epic Universe - Front Gate

When asked about Disney's expectations for the new park's opening, Johnston emphasized that Disney had considered it when setting projections for their parks and experiences division.

Here's a breakdown of Johnston's key points:

Integration into Projections: Disney accounted for Universal EPIC Universe's 2025 launch in their forecasts, suggesting it won't disrupt Disney's growth expectations for theme park experiences.
Positive Early Indicators: Johnston mentioned that early bookings for Disney's summer 2025 season remain strong.
Historical Perspective: Reflecting on past theme park openings in Florida, Johnston noted that the increased tourism benefits both Disney and the broader local market. Disney expects the same boost in visitor interest from Epic Universe.

Investors have repeatedly asked Disney Executives about the impact of Universal Epic Universe. Speaking in April 2024, Disney CEO Bob Iger said, "We've been aware of Universal's plans for a new park for more than a decade. And we have a sophisticated approach to analyzing the needs of all of our businesses and strategically deploying capital."

He went on to list recent openings at Walt Disney World, including Star Wars Galaxy's Edge, the EPCOT transformation, and TRON Lightcycle Run at Magic Kingdom.

Nova Corps Starblaster with Spaceship Earth and Monorail passing by Guardians of the Galaxy Cosmic Rewind

Iger continued, "By staggering these major launches, we've been able to commercially and operationally optimize our new offerings over time, rather than having to do it all at once. And based on the guest experience that we've heard all about, from all of these items that I just mentioned, we know that they're extremely popular and they're serving our guests extremely well."

Universal Epic Universe – Bird’s-Eye View map

According to Universal, "Epic Universe will present a level of theme park immersion that is unmatched – transporting guests to expansive worlds featuring more than 50 awe-inspiring attraction, entertainment, dining and shopping experiences that come together to create an unforgettable adventure that is nothing short of epic. The addition of Universal Orlando's fourth theme park will also transform the award-winning resort into a weeklong vacation destination filled with even more compelling experiences. "

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dmw3 hours ago

@lentesta you've come a long way since the original "Unofficial Guide" books. I think I still have some of the old versions, circa late 90's, early 00's. I remember going to the library to check out a book to get tips, and making copies of the touring plan pages from the back of the books. Many thanks for all you do and the great info it provides to us!

Disney Analyst3 hours ago

Which I can’t understand anyone ever skipping AK. It’s the most stunning, best themed park in North America. I’d skip DHS any day. But I guess it goes to show, people are motivated by rides more than anything else.

BrianLo3 hours ago

I agree, I don't suspect it will. I actually think WDW will see a halo effect from Epic as they are now forecasting. Ultimately Universal will gain much more market share, but I think the market will just grow to accommodate. It's unlikely USF passes its previous 2022 peak for quite some time, but obviously the attendance resort wide will immediately increase. Very doubtfully will we see a 1.5x attendance increase from 2022 levels until Epic operational years 5-10 and probably timed around their Pokemon/Zelda additions.

Nevermore5253 hours ago

Yeah Disney seems content with AK becoming a park next to nobody really goes to for a couple years between Tropical America’s and the Zootopia replacement for It’s Tough to be a Bug coming.

Disney Analyst4 hours ago

My only thought is that Disney knows AK will stay flat, or be their park that goes down, which is why they don’t really care about taking an entire section offline for the Tropical America’s build.

Nevermore5254 hours ago

Yeah between Comcast reporting drops in attendance this year, Disney basically staying level, and as it currently stands Epic tickets being tied exclusively to multi-day tickets (except for APs), it’s fair to say that Comcast has concerns over cannibalizing their own attendance vs claiming a piece of market share from Disney. At least in the short term outlook.

Andrew254 hours ago

I don't think so, it was a great choice as it's considered (by most) as the world's greatest roller coaster. The issue is that Universal had a bunch of duds that could have been more impressive experiences for families (Villain-Con, DreamWorks, etc.). Excited for Epic, but I would have a preferred these additions into USF instead. Definitely prefer a full park filled to the brim versus 2 parks with multiple dead/outdated areas.

Disney Analyst4 hours ago

The current data really makes me wonder if Epic would have any negative impact on Disney whatsoever. I still theorize the biggest loser will be Universal Studios Florida - that park needs love.

DarkMetroid5675 hours ago

I hate this comment but I think you’re right. VelociCoaster is not really moving the needle for most Orlando tourists unless you happen to be a coaster enthusiast.

BrianLo6 hours ago

Still excited (need to reiterate that caveat). But if it was up to me we would have had a major investment cycle into the studios (Super Nintendo World and a dramatic front park rethink. DCA 2.0 level). IOA would get a couple smart capital investments and Entertainment. Only then Epic would have been well positioned to follow the start of next decade. It’s the eternal problem that it starts to get hard to properly take care of an increasing number of gates.

HauntedPirate6 hours ago

The fact that there is nothing beyond next year on that chart is odd. And what is there for 2025 is lighter than a feather. Just remember to keep snorting the dust. Bob and Hugh and Josh are counting on it.

Serpico Jones6 hours ago

Universal building VelociCoaster was a mistake, imo. They didn’t need another gut busting coaster.

Andrew256 hours ago

Disney is promoting a ridiculous amount of FL resident deals, so it's helping them push people into the parks. Universal is unfortunately risking it all for Epic Universe. While I enjoy the additions of Velocicoaster & Hagrid, their attendence declines show that they're still lacking in significant attractions for the entire family. I love my thrill rides, but Universal needs a substantial boost of family-friendly experiences. DreamWorks and Minions "Land" are poor afterthoughts.

BrianLo6 hours ago

It’s a great quarter, solid guidance. The companies mid term financial health is quite solid. I honestly was expecting international to pick up domestic slack, but it is the other way around. Epic seems to really just be impacting Universal likely in both a major downside (today) and major upside way (next year).