Euro Disney

Euro Disney narrows losses

 by Dr. Disney
Category: Disney

From bloomberg.com:

Euro Disney SCA, Europe’s largest theme-park operator, said its full-year loss narrowed as the new “Tower of Terror” ride boosted attendances and more people stayed at the company’s seven hotels on the outskirts of Paris.

The net loss was 2.8 million euros ($3.7 million) in the year through September, compared with 38.4 million euros in the prior 12 months, the Marne-La-Vallee, France-based company said today in a statement. Sales rose 9 percent to 1.33 billion euros and operating profit climbed 78 percent to 90.5 million euros.

“Tower of Terror” has become the park owner’s most popular attraction since its official opening in April. Annual revenue at the company’s two theme parks rose 8.7 percent to 715.8 million euros. Euro Disney, which hasn’t turned a profit since it opened a second theme park in 2002, also has offered discounts to families in an effort to get more visitors.

“Our revenues, theme-park attendance and hotel occupancy contributed to our performance, which is noteworthy given the economic environment,” Chief Executive Officer Philippe Gas said in the statement. Gas became CEO last month, replacing Karl Holz.

“Tower of Terror” takes visitors on an elevator ride that includes a free fall followed by a ride through a 1930s-style hotel featuring movie stars from the Hollywood heyday. The ride is so popular that visitors are advised to pre-register upon arrival to avoid hours of waiting, spokesman Jeff Archambault said.

Hotel Revenue

Hotel revenue rose 6.7 percent to 515.6 million euros and the occupancy rate gained 1.6 percentage points to 90.0 percent.

Euro Disney rose 7 cents, or 1.2 percent, to 5.97 euros today in Paris trading. The stock has lost 34 percent of its value this year.

Walt Disney Co., the second-largest U.S. media company, owns about 40 percent of Euro Disney’s stock, making it the company’s biggest shareholder. Saudi Prince Alwaleed Bin Talal is the second-biggest investor, with a holding of 10 percent.

Euro Disney is obliged by a debt-reorganization accord to improve operating margins.