Euro Disney losses soar as sales stagnate

9th November 2004, Comments 0 comments

PARIS, Nov 9 (AFP) - Troubled theme park operator Euro Disney posted Tuesday an operating loss of EUR 23.9 million (USD 30.9 million) in its financial year ending September 30 as sales grew only slightly to 1.048 billion.

PARIS, Nov 9 (AFP) - Troubled theme park operator Euro Disney posted Tuesday an operating loss of EUR 23.9 million (USD 30.9 million) in its financial year ending September 30 as sales grew only slightly to 1.048 billion.

Euro Disney's net loss widened to EUR 145.2 million from 58.3 million, aggravated by exceptional charges and by accrued royalty and management fees owed to its parent company Walt Disney Co.

Andre Lacroix, Euro Disney chairman, said the company generated "revenue and attendance growth in the highly important fourth quarter, thanks to the launch of The Legend of the Lion King Show."

Revenues at the company's Disneyland Resort east of Paris surged 15.9 percent to EUR 306.9 million in the fourth quarter to September from a pro form a 291.0 million a year earlier.

Total sales improved by 9.4 percent to EUR 311.9 million in the quarter from a pro forma 302.5 million a year earlier, taking account of real estate revenues, which fell to EUR 5.0 million from 11.5 million.

For the full-year, Euro Disney had positive cash flow of EUR 124.6 million because debt repayments to major creditors remain suspended and royalty and management fees will not be paid until the current financial year.

The company had a balance of EUR 125 million in its credit line at the end of September.

Increased spending by theme park visitors and hotel guests was mostly offset by lower hotel occupancy rates, as well as an anticipated decline in real estate development revenues, the company said.

Year-on-year attendance remained flat at 12.4 million visitors, though Lacroix said the figures mean Disneyland Resort Paris remains "the number one tourist destination in Europe."

Theme park spending per visitor rose five percent to EUR 42.7 from 40.7.

The hotel occupancy rate dropped to 80.5 percent from 85.1 percent, though hotel spending per room grew two percent to EUR 186.6 from 183.5.

Total revenues from the group's two theme parks increased five percent to EUR 531.3 million from 508.5 million but revenues from the hotels and Disney Village eased three percent to EUR 405.2 million from 416.7 million.

© AFP

Subject: French News

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