USJ a success or failure?

[dimwit]

My wife and son dragged me out to USJ on the weekend and I wondering how well it is doing financially. I have heard stories that it and Disney are the only two success stories in an otherwise gloomy market. But others have said that the place is in trouble Latest Theme Park ride: The White Elephant

What is the situation?

[Mulboyne]

Well, all things in context...is Seagaia a success or failure? If you read the accolades in the foreign press for Ripplewood then Seagaia is a success. By the same criteria, USJ must be blazing a trail of glory although the reality is that both parks have good asset value but volatile cashflow so it depends on what appetite the investors have for risk i.e. it is too early to tell on both.

[AssKissinger]

I know one thing about USJ: Their service sucks. Worst in Japan and that's saying a lot.

[dimwit]

Well, all things in context...is Seagaia a success or failure? If you read the accolades in the foreign press for Ripplewood then Seagaia is a success. By the same criteria, USJ must be blazing a trail of glory although the reality is that both parks have good asset value but volatile cashflow so it depends on what appetite the investors have for risk i.e. it is too early to tell on both.

Fair enough. Is the place turning a profit or not?

[Mulboyne]

Fair enough. Is the place turning a profit or not?

No. But no theme park turns a profit in the early years. The up-front investment is too high. Multinational companies can live with this more easily since they can engage in tax arbitrage. Japan is very generous in its treatment of losses so it might almost be in Universal's interest to maximize losses in Japan and later bring profits over from the US tax free.
But the maxim is that an investment made for tax reasons only is a bad investment so Universal must have have a more ambitious target for the park. And so the jury is still out.

[AssKissinger]

Oh Universal Studios, shit I thought you were talking about that new bank. What am I thinking of, help me out.

[dimwit]

UFJ= bank

USJ= theme park

[AssKissinger]

UFJ= bank

USJ= theme park

Thanks boss, btw, who the fuck is that in your avatar?

[Mulboyne]

Asahi: Universal Studios Japan turns 4, not a profit
Four years after the movie theme park opened in Osaka's Konohana Ward, it is still struggling to post a profit. The year ended March looks like another Fiscal Horror Show-Part IV, with more splatterings of red. Accumulated losses reached about 26.5 billion yen at the end of March 2004. Prospects are they will not be eliminated until fiscal 2012.

[dimwit]

UFJ= bank

USJ= theme park

Thanks boss, btw, who the fuck is that in your avatar?

It is my picture of Dorian Grey.

[dimwit]

Asahi: Universal Studios Japan turns 4, not a profit
Four years after the movie theme park opened in Osaka's Konohana Ward, it is still struggling to post a profit. The year ended March looks like another Fiscal Horror Show-Part IV, with more splatterings of red. Accumulated losses reached about 26.5 billion yen at the end of March 2004. Prospects are they will not be eliminated until fiscal 2012.

Interesting. How does that compare to other theme parks such as Tivoli Park or Space World?

[FG Lurker]

I know one thing about USJ: Their service sucks. Worst in Japan and that's saying a lot.

Oh Universal Studios, shit I thought you were talking about that new bank. What am I thinking of, help me out.

No longer on topic, but for bank service I would have to say that Tokyo-Mitsubishi is amazingly bad.

At least UFJ has bank machine availability 24/7/365. Not only is Tokyo-Mitsubishi's in-bank service absolute CRAP, but they still close all access to their banking network over Golden Week, New Years, and I think Obon too. Bastards.

[AssKissinger]

I know one thing about USJ: Their service sucks. Worst in Japan and that's saying a lot.

Oh Universal Studios, shit I thought you were talking about that new bank. What am I thinking of, help me out.

No longer on topic, but for bank service I would have to say that Tokyo-Mitsubishi is amazingly bad.

At least UFJ has bank machine availability 24/7/365. Not only is Tokyo-Mitsubishi's in-bank service absolute CRAP, but they still close all access to their banking network over Golden Week, New Years, and I think Obon too. Bastards.

That kills me. Of all the things I hate about Japan that may be at the very top. Why, why oh Lord, would they bother putting in a cash machine, if it's only open when the bank is open? If the fucking bank is open I don't need the fucking cash machine. I've bitched out bank staff in Japan several times over this. I don't care if they don't make the policy it's guilt by association. It's a fucking machine. It doesn't need Golden Week off for Christ's sake.


Hey, has anybody ridden the Spiderman ride at USJ? The one in Florida is amazing.

[Mulboyne]

Continuing this thread's bank/theme park dual personality:

Asahi: Mizuho, SMBC to put ATM cash into Golden Week
More banking customers will have access to ATMs during the May 3 to 5 stretch of national holidays. Mizuho Bank and Sumitomo Mitsui Banking Corp., both of which have been shutting down their cash machines for the period, will for the first time join UFJ in keeping the service open. That makes the Bank of Tokyo-Mitsubishi the only megabank that will not be operating its ATMs. Resona Bank, a city bank, will also close its machine operations. Both banks say they need the time for machine inspection and maintenance and for computer system integration. Shinsei Bank, IY Bank, a pioneering ATM-only bank, some post offices and Citibank plan to keep operating ATMs during the period.

Re: USJ Spiderman Ride - follow the links
TokyoDVThread: Japanese Theme Park Videos and Reports

[Blah Pete]

Why, why oh Lord, would they bother putting in a cash machine, if it's only open when the bank is open? If the fucking bank is open I don't need the fucking cash machine.

The excuse I heard was that the banks do all their data processing at night so they cut off transactions. This may have been necessary years ago, but things are slow to change here.
I use Citibank. Machines are open 24/7. Not convenient if you are outside Tokyo or Yokohama.

[Mulboyne]

Back on topic

Reuters via Yahoo: Goldman to get stake in Universal Japan park

Goldman Sachs may become the top shareholder in the Universal Studios Japan movie theme park under a plan by the operator to sell 20 billion yen ($182.1 million) of shares to the U.S. investment bank, the Asahi daily said on Wednesday. USJ Co. Ltd. has been struggling to increase the number of visitors to the park since its opening in March 2001 and would use the proceeds to pay back debt, the newspaper said. Currently, the City of Osaka has a 25 percent stake in USJ. Universal Studios Inc., whose movie franchises include Jurassic Park and Jaws, owns 24 percent. Another 5 billion yen of the preferred shares would be sold to the Development Bank of Japan, the report said. A formal decision is expected to come in July following a shareholders meeting, the report said. USJ officials said they could not comment immediately.

For more on Goldman Sachs and leisure in Japan see FG Thread: Just a lot of hot water

[Taro Toporific]

Reuters via Yahoo: Goldman to get stake in Universal Japan park....Currently, the City of Osaka has a 25 percent stake in USJ. Universal Studios Inc., whose movie franchises include Jurassic Park and Jaws, owns 24 percent...

The word I keep hearing is that years ago at the beginning the City of Osaka wanted to undermining the value of Universal Studios so the City couls take over a majority holding. The City of Osaka regulators kept trumping up health and safety violations in the USJ park made by former City of Osaka employees on loan to USJ to "help."
Fittingly, the City of Osaka was too successful in sabotage and now USJ is mega-screwed.
Plus the low gate figures cannot support the operating cost of USJ. At 10 cents on a dollar I suspect the fixed cost stucture of the place must be poor too.

[Blah Pete]

Wasn't USJ built when Matsushita controller Universal. If I can remember it was built against the advice of many experts that Matsushita ignored.

[Mulboyne]

Reuters: Japan developer eyes Paramount theme resort in Osaka

A Japanese real estate investor is looking to build a hotel and entertainment complex in the western city of Osaka with designs and attractions based on Paramount Pictures' films. Sun Capital Management and its investment arm Osaka Investment Management said they were exploring the development of a Paramount-branded complex that would include retail, dining and entertainment facilities and a 5-star hotel. Paramount, a unit of media conglomerate Viacom, said in a statement that it may license intellectual property from its film library and help design the project, but would not be an investor. The resort would be about 20 kilometres (12 miles) away from Universal Studios Japan's struggling theme park, which was sold to a Goldman Sachs-led consortium earlier this year as the number of visitors to its attractions --- based on movies Spiderman and Jurassic Park -- fell. Sun Capital spokesman Yuji Kirishima said they had not yet raised the funds for the project or talked with the Osaka government about potential assistance.

[Taro Toporific]

Since the Osaka Govt still is the majority owner of Osaka's Universal Studios Japan (which is still losing tons-o-money), why approve Paramount?!?

Reuters: Japan developer eyes Paramount theme resort in Osaka