United Parks & Resorts Inc. Q2 FY2025 earnings call

• Despite worst second-quarter weather, attendance grew. International and Group visitation increased. Orlando parks saw attendance growth.
• Forward-booking trends in Group business and Discovery Cove property are up mid- to high single digits for remainder of 2025 and strong for 2026.
• Board approved a new $500 million share repurchase program.
• Implemented a cost reduction plan to reduce up to $15 million in costs in the second half.
• SeaWorld Orlando attendance was up since Epic Universe opened, and continues to be up quarter-to-date in the third quarter.
• Strategic initiatives include sponsorship opportunities (projecting up to mid-single-digit million in sponsorship revenue for 2025 with annual outlook of ~$20 million), active international discussions with potential partners (expecting 2 MOUs by end of 2025), digital transformation with CRM and mobile app progress (app downloaded over 15.6 million times, 35% increase in average transaction value for food and beverage via app), hotel discussions, and IP partnerships.
• Rescued 500 animals in the second quarter of 2025, with over 42,000 animals helped historically.

In the second quarter of 2025, total revenue was $490.2 million, a decrease of $7.4 million or 1.5% compared to the second quarter of 2024. Attendance increased by approximately 48,000 guests or 0.8%. Total revenue per capita decreased 2.2%, with admission per capita down 3.9% and in-park per capita spending down 0.4%. Attendance at all Orlando parks, including SeaWorld Orlando, Aquatica Orlando, and Discovery Cove, increased. Revenue at SeaWorld Orlando was positive for the second quarter.

• Forward-booking trends in Group business and Discovery Cove property are up mid- to high single digits for the remainder of 2025 and strong for 2026.
• Expect the launch of 2026 passes to be well received, driving pass base growth.
• Implemented a cost reduction plan to reduce second half expenses by up to $15 million.
• Confident in delivering strong second half financial results with upcoming events and improved attendance trends.

• Weather headwinds impacting demand.
• Economic uncertainty potentially affecting consumer spending.
• Competitive landscape in the Orlando market and ability to maintain and grow market share.
• Need to better dynamically manage labor and operating expenses in reaction to demand changes.

Q: Steve Wieczynski asked about whether they did anything to drive visitation into Orlando parks given Epic opening and marketing impact on per caps.

A: Marc Swanson said they were aware of Epic opening and put more emphasis on marketing, and had to be more promotional due to weather, which impacted per caps but was a smart reaction.

Q: James Hardiman asked about quantifying weather and marketing impacts.

A: Marc Swanson said Easter benefit was almost offset by bad weather in the quarter, and they can't share much more on quantification.

Q: Thomas Yeh asked about consumer value consciousness and underlying trends.

A: Michael Mosticchio said in-park spend was almost flat, pass sales improved in July, early Howl-A-Scream sales are positive, and Discovery Cove is on pace for record attendance, so no material consumer pullback seen.

Q: Lizzie Dove asked about second half expectations and attendance trends.

A: Marc Swanson said quarter-to-date attendance through August 6 is slightly positive, had challenging July but made up lost attendance in August, and has big weekends and events ahead.

Q: Arpine Kocharyan asked about updated thoughts on hitting EBITDA benchmarks.

A: Marc Swanson said they're not guiding but have positive attendance trends, cost savings plan, and expect better second half with Halloween and Christmas events.

Q: Chris Woronka asked about leveraging fall/winter events to boost summer.

A: Marc Swanson said they try to leverage popularity of Halloween and Christmas by selling season passes for next year, linking summer visits with fall/winter benefits.