Look out Disney; NBCUniversal is stealing your theme park playbook.
The Comcast division is allocating most of its investment cash to its successful theme parks business, in particular NBCU is banking on its Warner Bros. franchise “Harry Potter,” to boost revenues.
Speaking on Comcast’s fourth quarter earnings call, chief financial officer, Michael Angelakis noted that capital expenditure at NBCUniversal in 2013 was primarily driven by theme parks and that 2014 would see similar levels of investment.
NBCUniversal’s movie business is a roller coaster ride and is expected to have a quiet 2014 slate in preparation for a slew of blockbusters in 2015, so the theme park business is quietly expanding. Angelakis noted theme parks had seen operating cash flow grow from $400 million in 2009 to over $1 billion in 2013.
NBCU increased spending by $397 million to $1.2 billion in 2013 in order to create new additions to attractions including “Transformers,” and “The Wizarding World of Harry Potter” in Orlando and building “Despicable Me,” and “Harry Potter,” attractions in Hollywood.
Revenue at the theme parks in the fourth quarter increased 8.8 percent to $566 million, while operating cash flow increased 4.6 percent to $257 million.
For the year, theme parks revenue grew 7.2 percent to $2.2 billion driven by both “Harry Potter,” and “Transformers,” attractions.
Comcast surprised the market with a healthy pick-up in video subscribers, rising 43,000 for the fourth quarter versus a 7,000 subscriber loss in the year ago period. Wall Street was expecting an increase of around 1,600 customers, according to analysts. The firm also added some 397,000 broadband customers.
Comcast’s total fourth quarter net income grew 26 percent to $1.91 billion or 72 cents per share. Adjusted earnings per share were 66 cents just missing analysts’ expectations of 68 cents.
Revenue rose 6.2 percent to $16.9 billion above consensus expectations for $16.6 billion. The stock was up 2.55 percent at 10.00 am, to $53.88.
The company is in advanced talks with Charter Communications to acquire parts of Time Warner Cable if Charter is successful in acquiring the New York headquartered cable operator.
Comcast shares were up 2 percent to $53.54 in midmorning trading.