United Parks & Resorts Q1 2025: Navigating Contradictions in Attendance Growth and Revenue Strategy

Attendance Growth and Impact of Epic Universe Park, Weather Impact on Attendance and Financial Performance, Revenue Growth Strategy, Sponsorship Opportunities and Revenue Expectations, Attendance and Per Capita Growth are the key contradictions discussed in United Parks & Resorts' latest 2025Q1 earnings call.



Revenue and Attendance Trends:
- United Parks & Resorts generated $286.9 million in total revenue for Q1 2025, a 3.5% decrease year-over-year.
- Attendance in Q1 2025 decreased by approximately 59,000 guests, a 1.7% decline, primarily due to the unfavorable calendar shift with Easter and spring break holidays.
- The revenue and attendance decline were attributed to the timing-related impacts, including Easter and spring break holidays shifting into Q2 and certain expenses being recorded in Q1.

Financial Performance and Cost Management:
- The company reported a net loss of $16.1 million for Q1 2025, compared to a net loss of $11.2 million in Q1 2024.
- Adjusted EBITDA decreased by $11.7 million to $67.4 million, impacted by the timing of certain expenses and calendar shifts.
- Despite these challenges, the company managed to control costs effectively, as reflected in the operating expenses decreasing by $3.6 million.

Strategic Investments and Future Growth Opportunities:
- United Parks & Resorts is investing in new rides and attractions, including Jewels of the Sea, Rescue Jr., and SeaWorld Orlando's Expedition Odyssey, among others.
- The company is also exploring strategic partnerships, real estate opportunities, and sponsorships to unlock additional value, with expectations of realizing mid- to high single digits in sponsorship revenue in 2025.
- These investments and strategic initiatives aim to improve guest experience, generate more revenue, and enhance operational efficiency.

Impact of International Sales and Group Bookings:
- International ticket sales are reported to be up, although at a lower single-digit rate, while group bookings are up year-over-year.
- The company is focused on growing group business and improving international visitation, despite the global macroeconomic environment, which has led to some weakness in international sales for competitors.