It's a difficult spot to be in for Universal. The underlying question is whether increasing attendance volume via promotions is truly a cure-all, considering that EBITDA margins are seeing the most compression in this environment!
Thanks, Brandon. That's the question I keep coming back to. Promotions can bring the crowds back, but every discounted ticket brings in less while the cost of running the parks stays put. That's what the quarter showed: revenue down 4.4%, adjusted EBITDA down 17.1%. Management expects Orlando's softness to last through at least the first half of 2027, so the next few quarters will show whether more volume can rebuild the margin.
It's a difficult spot to be in for Universal. The underlying question is whether increasing attendance volume via promotions is truly a cure-all, considering that EBITDA margins are seeing the most compression in this environment!
Thanks, Brandon. That's the question I keep coming back to. Promotions can bring the crowds back, but every discounted ticket brings in less while the cost of running the parks stays put. That's what the quarter showed: revenue down 4.4%, adjusted EBITDA down 17.1%. Management expects Orlando's softness to last through at least the first half of 2027, so the next few quarters will show whether more volume can rebuild the margin.