Increased Net Loss at Disneyland Resort Paris for fiscal year 2006

[HongKongDisneyland]

EURO DISNEY S.C.A.
Reports Annual Results for Fiscal Year 2006

Net Loss on a comparable basis reduced 21% to Euro 89 Million.

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Revenues increased 4.5% to Euro 1,087 million in fiscal year 2006 reflecting increases in theme parks attendance and hotel occupancy. Theme park revenues increased 5.4% to Euro 579.2 million, following an increase of 0.5 million in attendance, which reached 12.8 million in 2006. Hotels and Disney Village revenues increased 4.2% to Euro 412.2 million due to a higher occupancy rate of 83.5% compared to 80.7% for fiscal year 2005, as well as increased guest visitations at Disney Village.

Increased Net Loss at Disneyland Resort Paris in Fiscal Year 2006 over Fiscal Year 2005.
for 2006 Net loss : 88.6 million (Euro)
for 2005 Net loss : 53.1 million (Euro)

Source: Euro Disney S.C.A.

[Zarniwoop]

The annual report 2005 says the loss was 94.9 million €. 2004 it was 145.2 million €. So we can see EDL is aiming at right direction.

http://www.eurodisney.com/en/pdf/fin...rt_2005_uk.pdf

So what happened, why do these reports differ? One thing that happened last year was TWDC forgave a big loan. This must be one of the reasons why 2006 Annual Report states loss only 53 million €.

This is why there's this "Comparable Basis" on the report. It shows the real game; no loan modification affecting there.

Also note that EDL doubled it's investments during 2006. It widens the loss, but actually the money for new attractions was collected from investors two years ago. So actually the loss was only about 30 million €.

Cheers,
Zarniwoop

[Malin]

Would it have anything to do with cost involved in all the construction going on at WDS and the opening of the Buzz attraction at DLP as I do believe the cost of opening these new attractions are usually included in the annual report.

[RenMan]

So, the title of this thread should be "Decreased Net Loss..." or am I reading this wrong?

[Zarniwoop]

Would it have anything to do with cost involved in all the construction going on at WDS and the opening of the Buzz attraction at DLP as I do believe the cost of opening these new attractions are usually included in the annual report.

Yes. DLRP has invested 132 million € past year! Loss was 89 million €.
Also 2005 EDL had cash 242.2 million € and after 2006 they had cash 266.4 €. So increase there too.