Euro Disney S.C.A. Reports First Half 2008 Results

[Figment!]

Euro Disney S.C.A. Reports First Half 2008 Results

Euro Disney SCA Press Release
May 6, 2008

EURO DISNEY S.C.A. Fiscal Year 2008 Reports First Half Results Six Months Ended March 31, 2008 - Revenues increased 18pct to EUR 605 million, primarily reflecting growth in Resort operations - Positive operating margin of EUR 1 million, against a prior-year loss of EUR 36 million - Net loss reduced by 47pct to EUR 43 million

Euro Disney S.C.A., operator of Disneyland(R) Resort Paris, reported today the results for its consolidated group, for the first six months of fiscal year 2008 which ended March 31, 2008.

Revenues for the First Half increased 18% to EUR 605.5 million, primarily reflecting growth in Resort operations. Theme parks revenues increased 17% to EUR 316.4 million, driven by an increase of 0.9 million in attendance to 7.0 million and a 2% increase in average spending per guest. Hotels and Disney(R) Village revenues increased 15% to EUR 235.9 million, driven by a 10% increase in average spending per room and a 5.4 percentage point increase in hotel occupancy to 88.5%. The Group's Resort business is subject to the effects of seasonality, which may include the shift of holidays between reporting periods, with the first half of a fiscal year typically generating less revenue than the second half. The First Half benefited from the shift in some of our key markets of the Easter holidays from April in the prior-year period to March.

Real estate revenues increased EUR 18.6 million to EUR 25.1 million, principally resulting from EUR 12.5 million of revenue related to the sale of a property in Val d'Europe which had been subject to a long term ground lease.

Costs and expenses for the First Half grew 10% compared to the prior-year period primarily driven by labor and other direct costs to support the increased Resort and Real Estate activities, as well as labor inflation and incremental depreciation and amortization related to new attractions. This comparison also reflects a claim settlement in the prior year that reduced costs and expenses.

Operating margin before depreciation and amortization increased EUR 42.0 million to EUR 81.1 million.

Operating margin reached EUR 1.3 million, against a prior-year loss of EUR 36.3 million.

For the First Half, net loss decreased 47% to EUR 43.4 million while net loss attributable to equity holders of the parent decreased 46% to EUR 37.5 million.
Commenting on the results, Karl L. Holz, Chief Executive Officer of Euro Disney S.A.S, said:

"Our first semester of fiscal year 2008 was marked by an 18% increase in revenues and a positive first semester operating margin. This solid performance was driven by continued growth across all our key markets and throughout our Resort operations with increases in attendance, hotel occupancy and average spending per guest. Our management team remains focused on the execution of our growth strategy as we continue to drive our business toward profitability.

Building on the success of our 15th Anniversary, filled with immersive Disney family entertainment and adventures, we have launched The Celebration Continues...Big Time! with the opening of the iconic attraction The Twilight Zone Tower of Terror(TM)* and Stitch Live!.
The entire Disneyland Resort Paris team is committed to delivering a quality Guest experience and building on our positive momentum as we head into the peak summer season."

[TheRustyScupper]

1) In real terms (excl property sales), it is still a EUR 55million loss.
2) That is about $87million in our terms.
3) Spin or no-spin, Disney Paris remains a loser.
4) However, if they would ever spend the money, I think it would be profitable.

NOTE: Disney long has a reputation for underspending in building new parks. The actual cost may be high, but the entertainment value is low and cheap. They believe that "If we build it, they will come.". This can be witnessed by the opening of parks - MGM-Studios, Disney-Paris, Animal Kingdom, Studios-Paris, Hong Kong.