Euro Disney Net Loss Widens Threefold,Orlando Sentinel,2006.4.27

[HongKongDisneyland]

PARIS -- French theme-park operator Euro Disney SCA said Thursday its net loss more than tripled in its fiscal first half because of one-time restructuring gains a year earlier.

Euro Disney's net loss rose to 102 million euros ($126 million) in the six months ending March 31 from 29.8 million euros a year earlier.

The company, which operates the Disneyland and Walt Disney Studios parks in the Paris region, said its operating loss increased to 61.1 million euros ($75.9 million) from 51.2 million euros ($63.6 million) a year earlier, as revenue fell.

First-half revenue decreased 1.4 percent to 467 million euros ($581 million) from 474 million euros last year, as both theme park attendance and hotel occupancy were lower.

Spending per hotel room decreased due to the discounting of room rates for certain vacation packages, Euro Disney said.

Real estate revenue grew 60 percent from the prior year to 15.5 million euros ($19.3 million) because of increased land sales of residential property.

The group said it plans new attractions in the Walt Disney Studios Park from the beginning of the 2007 fiscal year to add to the appeal and capacity of Disneyland Resort Paris.

Euro Disney shares were unchanged at 0.10 euros (12 cents) in early afternoon Paris trading.

Source: Orlando Sentinel

[tloolgb]

Ouch. Not only are they trading at 12 cents each, but they tripled losses? Granted at this time last year they were not spending as much money on ToT, Toon Studios and Buzz...but wow.

You know give Eisner/Wells credit...setting EuroDisney up with all that land from the the French government to turn around and sell off to create towns...it's bringing in money to offset the loss...

[J9000]

it has dropped, but that period last year clipped the easter holidays (easter sunday was 27th march,) this year they broke on the 1st april (in blighty anyway)

[TDLFAN]

I say "Pull the Plug" and close it down. WDW could benefit greatly from some of the technology that park introduced.

[massimo]

Originally Posted by TDLFAN

I say "Pull the Plug" and close it down. WDW could benefit greatly from some of the technology that park introduced.

Are you kidding, right? You do know the PR nightmare that would follow, right? And don't forget it's still a place visited by about 12 million people a year, that's not a bad figure, at least for the European market. The only thing I can imagine is to find some financial way to cut the debt and start again, but the park itself I think is fairly successful.

I think you were just (once more) blinded bu your passion for TDR

[pussnboots]

Originally Posted by TDLFAN

I say "Pull the Plug" and close it down. WDW could benefit greatly from some of the technology that park introduced.

Ah yes, good to see some of us are keeping our heads cool.

[pussnboots]

Also, remind me to legally deny you of surrogacy in case I ever end up in a coma or get a nasty papercut.

[drnilescrane]

Originally Posted by massimo

Are you kidding, right? You do know the PR nightmare that would follow, right? And don't forget it's still a place visited by about 12 million people a year, that's not a bad figure, at least for the European market. The only thing I can imagine is to find some financial way to cut the debt and start again, but the park itself I think is fairly successful.

I think you were just (once more) blinded bu your passion for TDR

12 Million is a Great Attendance Figure. The problem is Eisner built the resort with to much debt, from which it will not be able to recover from on it's own. There should have only been 1 hotel and the disney village should have waited for future expansion, and the WDSP shouldn't have been built untill the resort's books were in the black and the debt had been eradicated, which would have been around 2010-2020 without the extra burden.

Don't pull the plug on DLRP, just the Stuidos and the excess hotels during the off seasons untill debt has been totaly eradicated.

[Dustysage]

I'm sure TDLfan was joking. He loves DLP as much as I do. But they sure did make a HUGE mistake in opening the Studios. I don't know how they are ever going to turn that ugly mess around. For those who think that DCA is a drain on Disneyland, that is NOTHING compared to the complete blood sucking leech that the Studios is on DLP.

[pussnboots]

I wonder if it would actually be cheaper in the big picture just to close the Studios down for a few years? Disregarding the improbability of that idea, and the message it would send out to guests, how would that all work out financially?

(Meanwhile, people are calling DCA an embarrassment because they will have to rebuild its entrance. Well, it is an embarrassment, but just to put it all in perspective.)

[Flaming Cabin]

I wonder what TDLfan will say when the Japanses economy collapses again and TDS becomes an operational millstone to TDL (TDS has proven to not be as repeatable as TDL)? If attendance ever drops below break even there, the bleeding will be excruciating, especially for a public company like OLC. It would be nice to move a few of those TDS rides back to Anaheim! I'll be the first in line to cry "pull that plug" :-)

[J9000]

the docs right,
2 two star
2 three star
1 four star
1 five star
5 'good neighbour'

shut the resort ones down

[Disney Magic]

Like Dustysage said, he must have been joking, could you really imagin another company buying out the resort like Six Flags, what a tragedy that would be. But as mentioned before operating all those hotels is really the biggest drain for DLRP. As far as attendence goes DLP actually draws some big numbers for attendence, the Studios needs lots of work and should never opened in the state it is.

[euro disney stefan]

The hotels of Disneyland Resort Paris were a big mess in 1992. At the moment they have a yearly occupancy level of 82% which is great. There is a lot of people too!!! As you said 12 millions are a lot. And the studios are not hated as DCA is. I think Anaheim has much more daily visitors than Paris has. People who have a hopper pass do not really care - and besides that - Moteurs, Action and Rock'n Roller Coaster are two of the resorts mos beloved attractions.

[milo_vhw]

Originally Posted by drnilescrane

..and the WDSP shouldn't have been built untill the resort's books were in the black and the debt had been eradicated, which would have been around 2010-2020 without the extra burden.

I thought they had to build the park before let's say 2003. Otherwise they would lose the ground/land. So they had to come up with a park, just any park, in very little time.