mixed financial results for DLP

[TeamJones22]

The annual financial results are out for 2005 and are very mixed with some excellent parts but some very discouraging parts too. To be honest,more bad news than good.but heres a summary of stuff for anyone thats interested:

First,to the good news. Revenue has reached an all time high in 2005 which reflects higher levels of consumer spending,which is always good news for the long term future of DLP.Due to the anticipated increase in theme park attendance due to new attractions etc in coming years,if people are spending more,then the company will make alot more money.Also,due to the company's restructuring during the first half of 2005, net losses were down by a massive 35% which reflects much greater efficiency and cost cutting levels within the company which also bode well for the future,and,in theory, will save the company a lot of money for years to come.

However,there is a lot of bad news.The main negative thing to look at is, Despite the opening of a new attraction and increased 'hype' -mainly through word of mouth- about DLP, annual attendance has dropped 100,000 people to 12.3 million a year. The hotels and the Disney village also lost out this year,wiv consumer spending dropping by almost 11million euros. Operating costs (how much it costs for the park to run) also increased by 34million euros.

A point which i myself found very interesting and quite confusing given the ambition and aim of the company for the next few years,marketing costs dropped by 8million euros.while this sounds positive,surely marketing costs should be increasing steadily over the next few years to make sure everybody knows about the exciting new steps the company is making.

Labour costs have also increased by a fair margin,which has had a big effect on the companies end of year results. Despite a restructuring, the royalties and management fees also went up to 59.4 million euros,which is quite a big thing considering cuts are being made everywhere except there?

To leave on a positive note,net loss decreased by a huge 50.3 million euros,which definitely means the company is going in the right direction somewhere.

Very much a mixed year for DLP.and,its just my opinion,but anyone with shares,id be holding on to them until 2010 at the very least if i were you!
Martin.

 

[Cyrano]

Yes I thought the same when I posted this

 

[Ware Bears]

Very much a mixed year for DLP.and,its just my opinion,but anyone with shares,id be holding on to them until 2010 at the very least if i were you!
Martin.

I think it will be a very long time before they pay any dividends, if ever LOL but seeing as I only bought the shares for the discounts and they have more than paid for themselves in one trip alone, I am quite happy to hold on to them!

 

[Cyrano]

I think it will be a very long time before they pay any dividends, if ever LOL but seeing as I only bought the shares for the discounts and they have more than paid for themselves in one trip alone, I am quite happy to hold on to them!

I agree Elaine. To buy these for an investment would be

 

[TeamJones22]

i dont know,id have thought itd be a very good investment especially now. Appreciated that DLP isnt exactly making a profit,but all these new attractions and improvements are bound to have a big effect on how many people go to the park,and how much revenue the company has. Even if its still making a loss,it will be making less of a loss so the share price will increase.That is,of course,assuming there are no more terrorist attacks in the next 5-10 years or something like that,if there isnt,the future is most definitely bright.Seems like a pretty clever medium term investment to me,but,maybe thats just me huh?

If its not,and maybe this is just me bein silly,but if DLP will not become a good investment,then it wont be long until the owners decide that enough money has been lost and that they dont want to lose anymore. Its a company,and the bottom line is,a company that continues to make huge losses despite huge cash injections to make it a more attractive proposition to consumers will die sooner or later.

But like i said,i think the futures bright,so its all good!