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    The Business of Theme Parks: How Much Money Do They Make?

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    Wonwhee Kim
    1. The distribution of revenues at theme parks follows a power law. Less than 10% of theme parks are responsible for 80%+ of theme park revenues. 2. Disney and Universal are the only theme parks with more than $1 billion in revenues, while most major parks are between $100 million and $500 million. The majority of theme parks generate less than $100 million. 3. Attendance does not show a strong correlation with high revenues. As in the case of Hong Kong, Disneyland has nearly 2x the revenues of its higher-attended competitor, Ocean Park. 4. Some of the largest theme park chains in the world other than Disney and Universal average $100 million in revenues, although this reflects some parks with over $200 million and others well under $100 million. 5. EBITDA margins show a less pronounced variation. Typical EBITDA margins at successful theme parks, regardless of size, average between 20 and 35%. The Disney brand is no guarantee of high profitability. 6. Scale matters in the theme park industry. A high investment and first-mover advantage leads to cumulative advantage effects, such as the ability to charge more and have higher demand. www.theparkdb.com

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    The Business of Theme Parks: How Much Money Do They Make?

    Uploaded by

    Wonwhee Kim
    45K views8 pages
    1. The distribution of revenues at theme parks follows a power law. Less than 10% of theme parks are responsible for 80%+ of theme park revenues. 2. Disney and Universal are the only theme parks with more than $1 billion in revenues, while most major parks are between $100 million and $500 million. The majority of theme parks generate less than $100 million. 3. Attendance does not show a strong correlation with high revenues. As in the case of Hong Kong, Disneyland has nearly 2x the revenues of its higher-attended competitor, Ocean Park. 4. Some of the largest theme park chains in the world other than Disney and Universal average $100 million in revenues, although this reflects some parks with over $200 million and others well under $100 million. 5. EBITDA margins show a less pronounced variation. Typical EBITDA margins at successful theme parks, regardless of size, average between 20 and 35%. The Disney brand is no guarantee of high profitability. 6. Scale matters in the theme park industry. A high investment and first-mover advantage leads to cumulative advantage effects, such as the ability to charge more and have higher demand. www.theparkdb.com

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    1. The distribution of revenues at theme parks follows a power law. Less than 10% of theme parks are responsible for 80%+ of theme park revenues. 2. Disney and Universal are the only theme parks with more than $1 billion in revenues, while most major parks are between $100 million and $500 million. The majority of theme parks generate less than $100 million. 3. Attendance does not show a strong correlation with high revenues. As in the case of Hong Kong, Disneyland has nearly 2x the revenues of its higher-attended competitor, Ocean Park. 4. Some of the largest theme park chains in the world other than Disney and Universal average $100 million in revenues, although this reflects some parks with over $200 million and others well under $100 million. 5. EBITDA margins show a less pronounced variation. Typical EBITDA margins at successful theme parks, regardless of size, average between 20 and 35%. The Disney brand is no guarantee of high profitability. 6. Scale matters in the theme park industry. A high investment and first-mover advantage leads to cumulative advantage effects, such as the ability to charge more and have higher demand. www.theparkdb.com

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    45K views8 pages

    The Business of Theme Parks: How Much Money Do They Make?

    Uploaded by

    Wonwhee Kim
    1. The distribution of revenues at theme parks follows a power law. Less than 10% of theme parks are responsible for 80%+ of theme park revenues. 2. Disney and Universal are the only theme parks with more than $1 billion in revenues, while most major parks are between $100 million and $500 million. The majority of theme parks generate less than $100 million. 3. Attendance does not show a strong correlation with high revenues. As in the case of Hong Kong, Disneyland has nearly 2x the revenues of its higher-attended competitor, Ocean Park. 4. Some of the largest theme park chains in the world other than Disney and Universal average $100 million in revenues, although this reflects some parks with over $200 million and others well under $100 million. 5. EBITDA margins show a less pronounced variation. Typical EBITDA margins at successful theme parks, regardless of size, average between 20 and 35%. The Disney brand is no guarantee of high profitability. 6. Scale matters in the theme park industry. A high investment and first-mover advantage leads to cumulative advantage effects, such as the ability to charge more and have higher demand. www.theparkdb.com

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 8

    6 Things You Probably Dont Need to

    Know, but Wont Hurt you to Know,


    About Theme Park Revenues
    The distribution of revenues at theme parks follows a power law.
    Less than 10% of theme parks are responsible for 80%+ of theme park
    revenues.
    2,000,000,000

    4% of parks. 60%+ of total revenues of this sample set

    1,500,000,000

    10% of parks. 25% of total revenues.


    $ revenues

    1,000,000,000

    500,000,000

    86% of parks. 14% of total revenues.

    0
    Source: The Park Database
    Disney and Universal are the only theme parks with more than $1 billion
    in revenues, while most major parks are between $100 million and $500
    million. The majority of theme parks generate less than $100 million.
    2,000,000,000

    ($1b+) Disney/Universal - parks in Anaheim, Orlando, Japan

    1,500,000,000

    ($350m-$1b) Super-regional, Tier 1 - Disney in HK, Paris. Universal Singapore (?)


    Seaworld San Diego/Orlando(?), Knott's Berry Farm/Cedar Point(?)
    $ revenues

    1,000,000,000

    ($100m-$350m) Super-regional, Tier 2 - Europa Park, Efteling, Ferrari World,


    Everland, Legoland, Tivoli Gardens, Blackpool, Six Flags, Seaworld,
    500,000,000
    Busch Gardens, Cedar Fair, Chimelong (China), Happy Valley,
    top 5-10 waterparks in the world

    (<$100m) Most of the theme parks/waterparks/indoor parks


    in the world
    0
    Source: The Park Database
    Attendance does not show a strong correlation with high revenues. As
    in the case of Hong Kong, Disneyland has nearly 2x the revenues of its
    higher-attended competitor, Ocean Park.
    1,800,000,000

    1,600,000,000

    1,400,000,000

    1,200,000,000
    $ revenues

    1,000,000,000

    800,000,000

    600,000,000

    400,000,000

    200,000,000

    Source: The Park Database, Annual Reports


    Some of the largest theme park chains in the world other than Disney
    and Universal average $100 million in revenues, although this reflects
    some parks with over $200 million and others well under $100 million.

    Park / Chain # Total Revenues Average Revenues N o t es


    80% of total theme park & resorts revenues to net out effect of hotels,
    Disney (Domestic Parks) 8 $11,393,600,000 $1,424,200,000 other sources. This is the ratio seen at Tokyo Disneyland. Year ended 2016.

    All 18 parks include waterparks, which are seasonal and smaller. Year ended
    Six Flags 18 $1,319,398,000 $73,299,889 2016.
    All 14 parks include waterparks, which are seasonal and smaller. Year ended
    Cedar Fair 14 $1,288,721,000 $92,051,500 2016.
    Universal Studios (Domestic) 3 $3,339,000,000 $1,113,000,000 Used 2015 reported results before acquisition of controlling stake in USJ.
    Universal Studios Japan 1 $1,154,166,667 $1,154,166,667 Reported results at acquisition (end of 2015).
    Tokyo Disney Resort 2 $3,205,016,667 $1,602,508,333 Theme park revenues only. 120 JPY = 1 USD. Year ended March 2016.
    Used 2011 per caps and 2015 attendance. Waterpark revenues not included
    Samsung Everland 1 $225,266,362 $225,266,362 here.
    7.75 HKD = 1 USD, 80% of total revenues to net out effect of hotels. Fiscal
    Hong Kong Disneyland 1 $490,322,581 $490,322,581 2016 (ended September)
    Ocean Park 1 $208,387,097 $208,387,097 7.75 HKD = 1 USD, fiscal 2016 (ended September)
    All 12 parks include waterparks and smaller attractions (Sesame Place). Year
    Seaworld 12 $1,344,292,000 $112,024,333 ended 2016.
    Futuroscope 1 $93,500,000 $93,500,000 85m EUR in revenues reported in 2014. Used 1.1 EUR = 1 USD
    Tivoli Gardens 1 $153,000,000 $153,000,000 955m DKK in 2015. Used 6.25 DKK = 1 USD
    Disney Paris 2 $794,200,000 $397,100,000 Year ended September 2016.
    Song Dynasty Town 1 $106,060,606 $106,060,606 700m RMB in 2015. Used 6.6 RMB = 1 USD
    Legoland Average 6 $688,000,000 $114,666,667 1.6 GBP = 1 USD, numbers are from 2015 calendar year
    Merlin Resort Theme Park Average 6 $456,000,000 $76,000,000 1.6 GBP = 1 USD, numbers are from 2015 calendar year
    Merlin Midway Attractions 99 $897,600,000 $9,066,667 1.6 GBP = 1 USD, numbers are from 2015 calendar year
    Source: Annual Reports, The Park Database
    EBITDA margins show a less pronounced variation. Typical EBITDA
    margins at successful theme parks, regardless of size, average between
    20 and 35%. The Disney brand is no guarantee of high profitability.

    Park Margin Category


    Disney (Domestic) Average 31% Op Inc + D&A
    Six Flags Average 26% Op Inc + D&A
    Cedar Fair Average 35% Op Inc + D&A
    Universal Studios Average 44% Op Inc before D&A
    Tokyo Disney Average 31% Op Inc + D&A
    Hong Kong Disneyland 15% EBITDA
    Ocean Park 19% Surplus from operations
    Tivoli Gardens 17% EBITDA
    Disney Paris loss EBITDA
    Legoland Average 40% EBITDA
    Merlin Resort Theme Park Average 16% EBITDA
    Source: Annual Reports, Park Database
    Scale matters in the theme park industry. A high investment and first-
    mover advantage leads to cumulative advantage effects, such as the
    ability to charge more and have higher demand.

    Size of bubble indicates magnitude of revenues


    Source: The Park Database, Annual Reports
    25,000,000

    20,000,000

    15,000,000
    Attendance

    10,000,000

    5,000,000

    0
    $0 $20 $40 $60 $80 $100 $120 $140

    Adult Ticket Price, USD


    Contact us for data, reports, or words of praise:

    [email protected]

    Visit us at:
    www.theparkdb.com

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