United Parks & Resorts Inc. Q3 FY2025 earnings call

• Performance in the quarter was negatively impacted by unfavorable calendar shift, poor weather, decline in international visitation, and less than optimal execution.
• Positive points: in-park per capita spending grew in 20 of the last 22 quarters; Halloween events had meaningful y-o-y growth; forward booking revenue for Discovery Cove and group up over 20% y-o-y; attendance at SeaWorld Orlando up year-to-date; stockholders granted authority for additional share repurchases; upcoming Christmas events; new rides and attractions announced for 2026; strong balance sheet with net total leverage ratio 3.2x and $872 million total available liquidity; cost management initiatives implemented; progress on sponsorships, international opportunities, mobile app (downloads over 16.8 million, revenue growth, increased transaction value for food and beverage purchases); real estate discussions ongoing with potential partners.

During the third quarter of 2025, total revenue was $511.9 million, a decrease of $34.1 million or 6.2% compared to the third quarter of 2024. The decline in total revenue was primarily due to a decrease in attendance and admissions per capita, partially offset by an increase in in-park per capita spending. Attendance for the third quarter decreased by approximately 240,000 guests or 3.4%. For the first three quarters of 2025, total revenue was $1.29 billion, a decrease of $51.9 million or 3.9%. Total attendance was 16.4 million guests, a decrease of approximately 252,000 guests or 1.5%. Net income for the period was $153.3 million, and adjusted EBITDA was $490 million.

• Forward booking revenue for Discovery Cove and group up over 20% y-o-y compared to same time last year.
• Launched 2026 pass program with best-ever pass benefits; encouraged by Black Friday sale preliminary results.
• Expected to spend approximately $175 million to $200 million on core CapEx and approximately $50 million on growth and ROI projects in 2025.

• Macro factors affecting international visitation; inconsistent consumer environment; potential impact of competition; weather-related risks; execution issues in cost management and operations.

Q: What happened from early August through the end of the third quarter regarding attendance decline and what does 'consumer is inconsistent' mean?

A: Attendance decline was due to weather recovery not meeting expectations, international attendance impact, and calendar shift. 'Consumer is inconsistent' means the consumer environment has varying trends, with in-park spend growing at the company's parks but overall consumer health being a mixed picture.

Q: What drove the reversal in international visitation seen in the third quarter?

A: It's more macro factors, including visa and immigration costs, affecting international visitation to the US, rather than specific company-related issues.

Q: Can you flesh out the Orlando market and regional performance, and attendance pacing in October?

A: International attendance impact is more on the Florida market and Orlando; SeaWorld Orlando attendance up year-to-date despite international headwind, but other markets need improvement. October attendance had weather recovery in some areas but was affected by weather in other parks and continued international decline, though in-park per cap and admissions per cap were positive.

Q: Overview of international MOU pipeline and sponsorships?

A: Outreach for international MOUs continues with one signed and another expected soon, though specifics not guided. On sponsorships, there are ongoing opportunities due to the large annual visitor base to parks, with expectations of finding more opportunities in the coming years.

Q: Thoughts on domestic visitors and attendance per cap by park, and K-shaped trends?

A: Focus on international visitation impact, with parks getting much attendance from local areas. Discovery Cove shows strong bookings and pacing, indicating some segments are performing well despite potential mixed consumer trends.