United Parks & Resorts Earnings Call Highlights Mixed Results

United Parks & Resorts Inc. ((PRKS)) has held its Q1 earnings call. Read on for the main highlights of the call.

The recent earnings call for United Parks & Resorts Inc. revealed a mixed sentiment, highlighting both positive and negative aspects of the company’s performance. On the upside, the company experienced strong attendance growth in April, increased in-park spending, and a promising pipeline of new attractions. However, these positives were offset by a decrease in first-quarter revenue, a net loss, and challenges related to admission per capita pricing.

April Attendance Growth

April 2025 marked a significant improvement in attendance for United Parks & Resorts, with an 8.1% increase compared to April 2024. This growth was attributed to the Easter holiday shifting into the second quarter, boosting visitor numbers and showcasing strong performance during this period.

In-Park Per Capita Spending Increase

Despite facing a negative calendar shift, United Parks & Resorts reported a 1.1% increase in in-park per capita spending during the first quarter, reaching record levels. This indicates that visitors are spending more during their visits, contributing positively to the company’s revenue streams.

Strong Pipeline of New Attractions

The company has been actively expanding its offerings with new rides and attractions across multiple parks. Notable additions include Jewels of the Sea at SeaWorld San Diego and Expedition Odyssey at SeaWorld Orlando, which are expected to attract more visitors and enhance the overall park experience.

Sponsorship Revenue Growth

United Parks & Resorts is optimistic about its sponsorship opportunities, projecting that they will exceed $20 million over time. The company expects mid-to-high single-digit growth in sponsorship revenue by 2025, contributing to high-margin revenue streams.

Strong Balance Sheet

As of March 31, 2025, the company’s financial health remains robust, with a net total leverage ratio of 3.1 times and $764 million in total available liquidity. This strong balance sheet provides the company with the flexibility needed for strategic investments and capital allocation.

Decrease in First Quarter Revenue

The first quarter of 2025 saw a 3.5% decrease in total revenue, amounting to a $10.5 million drop compared to the same period in 2024. This decline was primarily due to decreases in admissions per capita and overall attendance.

First Quarter Net Loss

United Parks & Resorts reported a net loss of $16.1 million for the first quarter, which is an increase from the $11.2 million net loss recorded in the first quarter of 2024. This highlights the financial challenges the company is facing in the current economic climate.

Challenges with Admission Per Capita

The company experienced a 4.2% decrease in admission per capita during the first quarter, attributed to the impact of the admissions product mix and lower realized pricing on certain admission products, posing a challenge to revenue growth.

Deferred Revenue Decrease

Deferred revenue balance decreased by approximately 6.7% compared to March 2024, with the pass base down about 2%. This decline indicates potential challenges in future revenue streams and customer retention.

Forward-Looking Guidance

Despite the challenges faced in the first quarter, United Parks & Resorts has provided optimistic guidance for the remainder of the year. The company anticipates setting new records in revenue and adjusted EBITDA for 2025, driven by strategic initiatives such as new attractions, sponsorship opportunities, and potential real estate developments. With a strong net total leverage ratio and substantial liquidity, the company is well-positioned to continue its growth trajectory and enhance shareholder value.

In summary, the earnings call for United Parks & Resorts Inc. presented a mixed picture, with both positive growth indicators and financial challenges. While the company faces hurdles such as decreased revenue and net losses, its strategic initiatives and strong financial position offer a promising outlook for the future.