EDL s.c.a. Third Quarter Announcement

[Zarniwoop]

Press release

Third Quarter Announcement
Nine Months Ended June 30, 2008

• Nine-month year-to-date revenues increased 12% to € 937 million
• Third quarter revenues up 3% despite the Easter Holiday shift in Europe to the second quarter
• The Twilight Zone Tower of Terror™* and Stitch Live! officially opened April 5, 2008 as part of The Celebration Continues . . . Big Time!

(Marne-la-Vallée, July 24, 2008) Euro Disney S.C.A. (the "Company"), parent company of Euro DisneyAssociés S.C.A, operator of Disneyland® Resort Paris, reported today the revenues for its consolidated group (the "Group"), for the third quarter of fiscal year 2008 (the "Third Quarter"), as well as the revenues for the nine months ended June 30, 2008.

Revenues for the nine months ended June 30, 2008 increased 12% to € 937.4 million from € 834.3 million in the prior-year period.

Theme parks revenues increased 13% to € 498.4 million from € 443.0 million in the prior-year period, driven by increases in attendance and average spending per guest.

Hotels and Disney® Village revenues increased 10% to € 371.4 million from € 338.0 million in the prior-year period, primarily driven by increases in average spending per room and hotel occupancy. Real estate revenues increased € 16.8 million from the prior-year period to € 5.6 million, principally resulting from € 12.5 million of revenue related to the first quarter 2008 sale of a property in Val d'Europe which had been subject to a long term ground lease.

Revenues for the Third Quarter increased 3% to € 331.9 million despite the shift of the Easter Holiday in some of our key markets from April in the prior-year period to March in the current-year period.

Commenting on the results, Karl L. Holz, Chief Executive Officer of Euro Disney S.A.S, said:

"We are pleased with our continued solid results through the Third Quarter, as we move into the peak summer season. The Celebration Continues… Big Time!, particularly as our guests respond positively to our new offerings in the Walt Disney Studios Park®. Our guests are enjoying the thrills of The Twilight Zone Tower of TerrorTM* and the magic of an interactive experience with a favorite Disney character in Stitch Live!. High School Musical 2 is also creating emotional connections through high energy performances and sing-along dance routines.

Our teams are fully mobilized to provide a high-quality guest experience through a combination of new services, iconic attractions and immersive entertainment that only Disney can create."

Source: EDL. s.c.a.

[nathan detroit]

Originally Posted by Zarniwoop

High School Musical 2 is also creating emotional connections through high energy performances and sing-along dance routines.

Typical marketing blah (sing along dance routines?)

However, apart from the mention of HSM this is indeed good news!

[Zarniwoop]

Only 3% growth on 3rd quarter explains that the company is reaching its limits. There's no room for growing if hotels are full.

It seems that fourth quarter will have 0 % growth.

[pussnboots]

Originally Posted by Zarniwoop

Only 3% growth on 3rd quarter explains that the company is reaching its limits. There's no room for growing if hotels are full.

It seems that fourth quarter will have 0 % growth.

(Okay, here comes stupid again, haha.)

If the hotels are full, isn't that excellent news? They haven't always been.

[Zarniwoop]

Last year they had nearly 90% occupancy rate and even then they couldn't make profit. So they're setting prices higher. But that can be dangerous and stop people coming.. what is happening at the moment. It's peak season and hotels are half full.

So DLRP has to look elsewhere to make money. They must get more locals in - and that's where they've succeeded quite nicely according this report. If they don't blow fourth quarter, they'll make € 100 million more than last year. They're really close to get even, or profit, this year.

[pussnboots]

Originally Posted by Zarniwoop

Last year they had nearly 90% occupancy rate and even then they couldn't make profit. So they're setting prices higher. But that can be dangerous and stop people coming.. what is happening at the moment. It's peak season and hotels are half full.

So DLRP has to look elsewhere to make money. They must get more locals in - and that's where they've succeeded quite nicely according this report. If they don't blow fourth quarter, they'll make € 100 million more than last year. They're really close to get even, or profit, this year.

I see. Were the hotels themselves unable to turn a profit or did the hotels have to make up for some other failing asset (parks, say)?

[Zarniwoop]

Originally Posted by pussnboots

I see. Were the hotels themselves unable to turn a profit or did the hotels have to make up for some other failing asset (parks, say)?

Yes, the huge debt.

[coruscant]

I think the 3% growth is smaller when compared with previous years but only due to the fact that easter happened this year during the second quarter. That's why this was a small increase. I don't believe it's because of reaching capacity

[nathan detroit]

Hotel occupancy may be at a high but the existing resort still can increase revenue without a price rise. Remember that this year is all 'Kids Go Free' and 'Extra Nights Free'. We shall see when these are reduced or removed whether attendance can stay as this year but with added money in the till.

[Zarniwoop]

Extra night free reflects on booking situation.

But true, actual parks can handle a lot more visitors.

[Disney_Dad]

Full report:

http://corporate.disneylandparis.com...ne-30-2008.pdf

[Disney_Dad]

If you scroll down to the bottom of page 2 you'll see that the year-on-year figures for the third quarter in isolation are less impressive. A 1% increase in theme park attendance is not great given that TOT has just opened. I find these numbers pretty disappointing.

[Kristof]

Originally Posted by Disney_Dad

If you scroll down to the bottom of page 2 you'll see that the year-on-year figures for the third quarter in isolation are less impressive. A 1% increase in theme park attendance is not great given that TOT has just opened. I find these numbers pretty disappointing.

These numbers are far from disappointing.

Again, please notice that the very bussy Easter season last year was during the third quarter and this year the second quarter.

Meaning that without one of the three most crowded holiday periods of the year , did not cause a drop in attendance, there was a grow of 1 %

So that means that , just taking a guess, calculating the extra attendance that comes in with Easter that did not count this year in the third quarter, the rise in attendance could easily be 3 tot 5 %

[nathan detroit]

But does even 3-5% go anywhere near to justify the addition of Crush, Cars, Stitch Live, ToT, a new parade, new fireworks and the Character Express?

[Zarniwoop]

Originally Posted by nathan detroit

But does even 3-5% go anywhere near to justify the addition of Crush, Cars, Stitch Live, ToT, a new parade, new fireworks and the Character Express?

Remember that Crush was already open on 2007 3rd quarter.. and the company made 12% increasement then. So this 1% is on top of that.