Apple Daily today reports that further expansion will happen and might even finish before phase one expansion (ie Mystic Manor) is complete. HKDL will use its operating profits to fund the expansion, without the need for WDC or HK govt to inject more funds. But the profit for 2009 was only HK$221 million EBITDA (US$28m) and although 2010 is expected to be more, it still won't be much more than 2009.
Apple Daily said the new expansion will be done stage by stage using the remaining 7 acres. They will build as they earn. The aim is: "the earlier we finish building the earlier we earn." The attractions to be build are yet to be confirmed. Once the board approves the plans and the budget the work will start.
So excited!!! I am ready to hear more expansions with HKDL lets hope it will couple of great attractions coming!!
That's intense, and makes sense business-wise.
I wouldn't get too excited just yet:
1. Always take online, Chinese (or other) "news" sources with a grain of salt... there is a constant barrage of misinformation, even from the more reputable ones.
2. The way WDI spends money, $28 million would get HKDL half-a-Dumbo.
3. Nothing of substance could be completed before Mystic Manor opens in 2013.
4. The brief article contains other major factual errors (e.g. "the remaining 7 acres", when there are more than 7 acres of expansion pads remaining within the berm; claiming the park turned a profit in 2009 when it actually lost $100 million in 2010 and twice that in 2009). These inaccuracies would indicate that this is a "bus driver" story.
I wouldn't mind an additional expansion to be started before Mystic Point is completed. I'm personally hoping for an Adventureland expansion, but if that means a Magic Carpet spinner, which would qualify as half-a-Dumbo, just give us a nighttime parade.
ORWEN: So, let me see if I understand this right. Hong Kong Disneyland is about to get half a Dumbo ride--to sit along side of the one they already have? They must be wanting to compete with Disney World's Magic Kingdom, if that's the case, because in Florida they'll have dueling Dumbo's. But Hong Kong will only have one and a half Dumbo's? That's not nearly enough trunk space for the half baked Dumbo ride. What are they THINKING over there???
ORGOCH: Most folks is wonderin' what the @#$ YER thinkin', at this point, ya crazy witch!
Here is another video of the ongoing construction in Hong Kong Disneyland:
ORWEN: Thank you, Timmy! I just love looking at trees. And those are growing in nicely.
ORGOCH: At the rate they's goin', the pine box my undertaker's buildin' fer me oughtta be done first!
ORDDU: Such sarcasm!! Both of you should be ashamed of yourselves. After all, Timmy went to all that trouble to conjure up that scene inside his crystal balls. The least you can do is show some gratitude.
ORWEN: But I AM grateful, Orddu! I said thank you! Those trees were beautiful!
ORGOCH: I think she means it, Orddu. The dumb cluck don't know this was an update fer Ping Pong Dizzyland. She thinks it's an update 'bout some forest!!
Itīs a bit sad that they hide everything behind the trees. Would be great to be able to ride the train and see the park from both sides as in a normal train.
^ Especially now that things are starting to get very interesting in the two good lands. I noticed the mountain is in the shape of a bear's head. I also like the Spanish moss hanging from the Mystic Point trees.
Soon TSL will open and the intrepid Michael20183 will have to do aerial updates from the Parachute Drop.
ORGOCH: What the guy OUGHTTA do is learn ta fly a broom stick--like us Cauldron gals--an' then he could take all the pictures he wanted from high above!
According to this financial report, titled "HONG KONG DISNEYLAND ANNUAL BUSINESS REVIEW FOR THE FISCAL YEAR 2010, The business generated revenues and earnings before interest, taxes, depreciation and amortisation (EBITDA) of over HK$3 billion and HK$221 million, respectively, representing significant year over year improvement". So I don't know where your claim of "the park lost $100 million in 2010" came from. Maybe you can give us your source?
Source: http://www.legco.gov.hk/yr10-11/engl...1-1090-7-e.pdf (page 11)
A financial analyst may tell you that EBITDA is a better measurement than net profit/loss for operations as it only focuses on earnings before the noises from financial costs (interest), accounting costs (depreciation and amortization), and taxes.
You may also want to consider the cash flow, as outlined on page 13. As it is this item that will fund future expansions. From the cash flow statement, one can see that net cash flow was positive and the component from operations was also very strong.
Hong Kong Disneyland Loss Narrows to $93 Million as Park Attendance Climbs - Bloomberg.
BUT As Wali explains above, I (and the Bloomberg article) was looking at net profit/loss from HKDL's statements, your article was specifically referencing EBITDA, so I was mistaken in pointing that out as a factual error.
I'd love to see immediate further expansion in HKDL. But if the article is accurate and they fund new rides on EBITDA, they will need years of significantly improved earnings in order to self-finance anything good (e.g. D-ticket Mermaid cost over $100 million according to insiders).
This is the part I have a problem with as creating unrealistic hopes:
Even if they somehow funded and announced, say, Star Tours II or Mermaid or Midway Mania tomorrow with construction beginning immediately, I doubt they could finish it before Mystic Manor opens in 2013.Quote:
further expansion might even finish before phase one expansion (ie Mystic Manor) is complete.