raidermatt
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The below article is from Reuters. It contains more specific info on attendance and occupancy rates than we get from Disney itself.
UPDATE 2-Euro Disney swings to a loss on new park costs
11/13/2002 9:42:23 AM
By Caroline Brothers
PARIS, Nov 13 (Reuters) - French theme park operator Euro Disney <EDLP.PA> swung to a bigger-than-forecast full-year loss of 33.1 million euros on Wednesday under the weight of costs involved in opening its new Walt Disney Studios park.
The company, 39 percent-owned by the U.S. Walt Disney Co (DIS) , told reporters it was setting a goal of raising its margin on earnings before interest, tax, depreciation and amortisation (EBTIDA) by 3-5 percentage points by 2005, but that was not enough to revive its disappointed shares.
Though Finance Director Serge Naim stopped short of promising a return to profit in the 2002/03 year, Euro Disney said it expected a rebound based on increased cash-flow stemming from 12 months of operations at the new park, the availability of 1,450 new hotel rooms and positive reservation trends.
"We haven't changed our target for 16 million visitors," Chairman Jay Rasulo told a news conference.
"Reservations for the next six months show a net progression on last year and have exceeded our forecasts... Christmas reservations are very strong -- it's almost full," he added.
He said visitors were prolonging their stays to two nights rather than one night before the Walt Disney Studios were built, while the added hotel capacity would help overcome "the biggest constraint" it had faced in meeting its 2001/2002 objectives.
"If we want to reach our 2005 aims, we have to make our EBITDA margin grow 3-5 percentage points before royalties," Naim said. That was from a base of 26.9 percent.
HEFTY EXCEPTIONAL COSTS
The 33.1 million euro net loss for the year to end-September was wider than analysts' estimates of a loss of 18.6 million euros and compared with a 30.5 million euro profit last year.
Profit before interest and tax (EBIT) emerged at 175.7 million euros, compared with 185.2 million last year and forecasts of 180 million.
"Euro Disney's full-year results were below our expectations on the back of a disappointing performance from the second theme park, the Walt Disney Studios. We reiterate our 'sell' recommendation," Merrill Lynch analyst Juan Carlos Calvo said.
Euro Disney shares slid 6.12 percent to 0.46 euros by 1336 GMT, underperforming a 1.36 percent drop in Paris's SBF120 index <.SBF120>, which it has lagged by 20 percent this year.
The company said six months of operations at the new park, when it attracted more than two million visitors according to Rasulo, helped boost overall turnover by seven percent to 1.076 billion euros.
However exceptional costs totalled 38 million euros, 37.2 million of which were linked to pre-opening costs at the Walt Disney Studios, and pushed the firm to a net loss. Last year, exceptional costs totalled 7.2 million euros.
Euro Disney opened the Walt Disney Studios next to the Magic Kingdom park in March. However the company indicated in July that visitor numbers were lagging its hopes. They emerged at 13.1 million overall, compared with 12.2 million a year earlier when only the Magic Kingdom park was in operation.
Daily spending per visitor, including entrances at the gate and spending on merchandise and meals, increased slightly to 44.4 euros from 43.1 euros a year earlier. Hotel occupancy rose 2.2 percentage points to 88.2 percent.
UPDATE 2-Euro Disney swings to a loss on new park costs
11/13/2002 9:42:23 AM
By Caroline Brothers
PARIS, Nov 13 (Reuters) - French theme park operator Euro Disney <EDLP.PA> swung to a bigger-than-forecast full-year loss of 33.1 million euros on Wednesday under the weight of costs involved in opening its new Walt Disney Studios park.
The company, 39 percent-owned by the U.S. Walt Disney Co (DIS) , told reporters it was setting a goal of raising its margin on earnings before interest, tax, depreciation and amortisation (EBTIDA) by 3-5 percentage points by 2005, but that was not enough to revive its disappointed shares.
Though Finance Director Serge Naim stopped short of promising a return to profit in the 2002/03 year, Euro Disney said it expected a rebound based on increased cash-flow stemming from 12 months of operations at the new park, the availability of 1,450 new hotel rooms and positive reservation trends.
"We haven't changed our target for 16 million visitors," Chairman Jay Rasulo told a news conference.
"Reservations for the next six months show a net progression on last year and have exceeded our forecasts... Christmas reservations are very strong -- it's almost full," he added.
He said visitors were prolonging their stays to two nights rather than one night before the Walt Disney Studios were built, while the added hotel capacity would help overcome "the biggest constraint" it had faced in meeting its 2001/2002 objectives.
"If we want to reach our 2005 aims, we have to make our EBITDA margin grow 3-5 percentage points before royalties," Naim said. That was from a base of 26.9 percent.
HEFTY EXCEPTIONAL COSTS
The 33.1 million euro net loss for the year to end-September was wider than analysts' estimates of a loss of 18.6 million euros and compared with a 30.5 million euro profit last year.
Profit before interest and tax (EBIT) emerged at 175.7 million euros, compared with 185.2 million last year and forecasts of 180 million.
"Euro Disney's full-year results were below our expectations on the back of a disappointing performance from the second theme park, the Walt Disney Studios. We reiterate our 'sell' recommendation," Merrill Lynch analyst Juan Carlos Calvo said.
Euro Disney shares slid 6.12 percent to 0.46 euros by 1336 GMT, underperforming a 1.36 percent drop in Paris's SBF120 index <.SBF120>, which it has lagged by 20 percent this year.
The company said six months of operations at the new park, when it attracted more than two million visitors according to Rasulo, helped boost overall turnover by seven percent to 1.076 billion euros.
However exceptional costs totalled 38 million euros, 37.2 million of which were linked to pre-opening costs at the Walt Disney Studios, and pushed the firm to a net loss. Last year, exceptional costs totalled 7.2 million euros.
Euro Disney opened the Walt Disney Studios next to the Magic Kingdom park in March. However the company indicated in July that visitor numbers were lagging its hopes. They emerged at 13.1 million overall, compared with 12.2 million a year earlier when only the Magic Kingdom park was in operation.
Daily spending per visitor, including entrances at the gate and spending on merchandise and meals, increased slightly to 44.4 euros from 43.1 euros a year earlier. Hotel occupancy rose 2.2 percentage points to 88.2 percent.
