The Walt Disney Company (DIS), Comcast Corporation (CMCSA): Amusement Parks Ready for Profitable Summer

Page 1 of 2

In 2009, things looked bleak for the nation’s amusement parks, with revenues sinking to $11.6 billion overall. But since then, as recovery for other industries has been sluggish, theme parks have experienced impressive growth. IBISWorld expects 2013 to be a record-breaking year for theme parks, raking in $13.4 billion. This would be a 2.8% increase from last year.

Disney exceeds expectations

The Walt Disney Company (NYSE:DIS) posted higher-than-expected earnings for its second quarter, due in part to the $3 million the company put into improving its parks, cruise ships, and resorts. Perhaps bolstered by $1.51 billion in income for its latest quarter, The Walt Disney Company (NYSE:DIS) raised ticket prices for its California and Florida parks. Visitors now pay $92 in California and $95 in Florida for a single-day admission.

The Walt Disney Company (NYSE:DIS)

But if analysts were worried higher prices might scare guests away, reports of longer-than-ever lines likely assuaged those concerns. Added to that is the fact that The Walt Disney Company (NYSE:DIS) hiked its prices last year, as well, and the company ended 2012 with larger-than-ever profits.

For The Walt Disney Company (NYSE:DIS), however, its media networks appear to be the biggest earners for the company. The owner of ABC, Lifetime, ESPN and more enjoyed nearly $5 billion in revenue from its networks for the second quarter, attributed largely to recent growth at ESPN. While its theme parks are still important to The Walt Disney Company (NYSE:DIS)’s shareholders, the performance of its media outlets appears to be more vital to the company’s earnings.

The wizarding world of Universal

Thanks to the magic of a certain young wizard, Comcast Corporation (NASDAQ:CMCSA)’s Islands of Adventure at Universal Studios saw a 66% leap in admissions from 2009 to 2011. This period was significant because The Wizarding World of Harry Potter debuted in 2010, with an expected expansion to the adjacent Universal Studios Florida park in 2014. Plans to add The Wizarding World of Harry Potter to its Hollywood theme park the next few years are currently underway.

Last year, theme parks were big earners for Comcast Corporation (NASDAQ:CMCSA), with the company achieving $2.1 billion in sales in 2012. Obviously, its parks are only one of many ventures for the country’s largest cable service provider. In addition to its parks and cable customers, Comcast Corporation (NASDAQ:CMCSA) owns NBC and CNBC, along with significant holdings in several other cable outlets. Still, parks are an important new part of Comcast Corporation (NASDAQ:CMCSA)’s business, with the company reporting Universal theme parks as a “standout” in its earning report. Profits on NBCUniversal fell 2.4 percent, while theme park revenue rose 12.2 percent during the same period.

Not to be outdone by Disney, Universal Studios Florida actually boosted its ticket prices this year to $92, beating Disney by becoming the first park to lift ticket prices above $90. But will it harm sales? With Universal Orlando now offering new rides based on the films Transformers and Despicable Me, movie fans will likely show up to try them out. But loyal Harry Potter fans will no doubt pay the new price to try out the new Harry Potter and the Forbidden Journey ride at Universal Orlando.

Six Flags Entertainment Corp (NYSE:SIX) over everywhere

While it’s no Disney, the Six Flags Entertainment Corp (NYSE:SIX) chain of amusement parks is no slouch in the amusement-park game itself. Known as the world’s largest chain of theme parks, the company operates 19 venues throughout North America, including Six Flags parks in 11 states, Canada, and Mexico.

Page 1 of 2

Dividend Stock Alert - Billionaire Robbins' Top Dividend Idea With 70% Upside Potential

Get Paid 3.5% Per Year While Waiting For The Stock Appreciate 70%

Larry Robbins' Glenview Capital Opportunity Fund returned 101.7% in 2013 and Robbins personally made $750 million. The same fund returned 25.3% in 2014. In this FREE REPORT we will share Robbins' top dividend idea that yields 3.5% and has been increasing its dividends for 39 consecutive years. Robbins thinks the stock has the potential to appreciate 70%.

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!