EDL sca Third quarter: Going down, but investing

[Zarniwoop]

EURO DISNEY S.C.A.
Fiscal Year 2009
Third Quarter Announcement
Nine Months Ended June 30, 2009

• Nine-month year-to-date revenues decreased 7% to € 867 million, reflecting a decline in guest spending, in real estate revenues and in hotel occupancy
• Third quarter revenues decreased 7% to € 308 million, reflecting declines in guest spending and hotel occupancy

Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:

"Consistent with the broader tourism industry in Europe, our revenues have been impacted by the challenging economic environment and consumer spending behavior. At the onset of the economic down turn, we implemented promotional offers to which our proximity markets in particular have responded. This decision has succeeded in driving attendance to Disneyland Paris, confirming the strong affinity for quality Disney entertainment, while at the same time impacting guest spending and margins.

We are closely managing our costs and have curtailed certain capital spending in this current environment. However, in line with our long-term growth strategy we continue to invest in the resort and are developing new attractions to open next year."

UPDATE ON RECENT AND UPCOMING EVENTS

On May 22, 2009, the Company announced the nomination of Greg Richart to assume the responsibilities of Ignace Lahoud as Chief Financial Officer of Euro Disney S.A.S. For further information, please refer to the press release published on May 22, 2009 and available on the Company's website.

The Group was involved in litigation with a counter party, seeking the refund of certain tax expenses made as from calendar year 2001 related to the Group's hotels. In July, the Group settled this matter and recognized € 7.1 million as a reduction of Costs and expenses during the fourth quarter. For further information on this matter, please refer to the Group's reference document registered with the Autorité des marchés financiers ("AMF") on December 18, 2008 under the number D.08-0795 and available on the Company's website.

In the coming months, the Company will be sharing details of new attractions that have begun construction and will be opened next year.

Source: EDL s.c.a. Press Release

[nathan detroit]

I hope this makes them reduce their prices within the resort. Yes there are some good deals going to get there and stay there but the cost of food, drink and merchandise is truely scandalous and is one of the reasons I have not hurried back.

[soundtracker]

Originally Posted by nathan detroit

I hope this makes them reduce their prices within the resort. Yes there are some good deals going to get there and stay there but the cost of food, drink and merchandise is truely scandalous and is one of the reasons I have not hurried back.

Same here! I can't believe the price of a single day ticket is now in excess of €60!

[Malin]

At the moment the operator can blame the free fall on the economic down turn, but with the World ecomony starting to show signs of improvement, buisness at the Resort should hopely improve soon, unless Swine Flu scares people away. Clearly Mickey's Magical Party has been a flop to some degree, but I wonder how much worst the results would have been without the event. Toy Story Land despite it sounding lame will increase capacity for the Studios and it will reverse the current downturn.

Regarding the prices at the Resort being so high, would we really be that bothered if it was not for the case that the pound is so weak against the Euro recently. I think attracting people to the Resort with lower accomendation rates, makes sense as the rooms need filling. If DLRP want to charge more than fair enough, but it should offer a quality experience for the price. Crap like Mickey's Magical Party and broken AA's on Phantom Manor don't cut it with me.

[nathan detroit]

Originally Posted by Malin

Regarding the prices at the Resort being so high, would we really be that bothered if it was not for the case that the pound is so weak against the Euro recently.

No. I have always considered the prices within the resort are far too high. Moreso now. As my father always said - 'you don't mind paying for quality but when you start to feel like your getting ripped off...'

[soundtracker]

Originally Posted by nathan detroit

No. I have always considered the prices within the resort are far too high. Moreso now. As my father always said - 'you don't mind paying for quality but when you start to feel like your getting ripped off...'

Quite. My own father recently made a rough comparison of prices for each of the Disney resorts we've been to over the past few years (Paris, Orlando and Tokyo) and, even taking the exchange rates into account, Paris was the most expensive!

That was just a rough calculation, mind you. Perhaps someone with stronger maths skills than me could give us a direct comparison?