Euro Disney S.C.A., the operating company behind Disneyland Resort Paris, this week announced a 20% revenue increase in its First Quarter 2008 results. The resort reports increases in attendance, guest spending and hotel occupancy.,
The company’s announcement that revenues have increased 20% year-on-year to € 314 million compared a rise of 6% to € 284 million to the same period in Fiscal Year 2007 is an impressive step forward for the debt-troubled group. Whilst First Quarter reports do not include any operating margins or statistics, only a 3-month revenue report, the announcement does include some details behind the rise.
The Resort area increased revenues by 13.7% overall, a 14% increase at the Theme Parks and 17% growth at the Hotels and Disney Village. Higher guest spending (3%) at the parks can largely thank the ticket price increase last November, whilst the reported 10% growth in attendance is particularly reassuring, considering 2007 was a record year for the parks. The First Half 2007 saw an increase of 10% to 6.1 million guests. Should the difficult second quarter be as strong as the first, the results of April 2008 could take this over 6.7 million. Growth is reported to be mainly from Spanish, Dutch and British markets.
At the hotels, there were increases again in average spending per room and hotel occupancy, which rose 6.8 percentage points. Last year, the First Half brought only a 5.1ppt increase (no figures were announced for First Quarter). Unlike last year, however, visitors from the United Kingdom as well as Spain are attributed to the increase.
In its Real Estate dealings, the group’s revenues increased € 18.4 million to € 24.4 million due to a property sale in Val d’Europe.
Karl L. Holz, the Chairman and CEO of Euro Disney S.A.S., stuck to his line on enhancing guest experience to drive revenue growth:
“We are pleased with our first quarter results, with the growth in revenues reflecting increases in all our key business drivers. These revenue results show that our strategies, coupled with our team’s solid execution, are delivering and we remain focused on driving the business towards profitability.
Our 15th anniversary celebration, marked by the opening of the Crush’s Coaster and Cars Race Rally attractions as well as the new Disney’s Once Upon a Dream Parade, has created another level of emotional connections with our guests. In fiscal year 2008, the Celebration Continues, Big Time with the April grand opening of The Twilight Zone Tower of Terror in the Walt Disney Studios® Park. This iconic Disney attraction will add to the high-quality experiences we offer visitors to our Resort … the place where dreams come true.”
If a 14% revenue increase in the Resort is truly as good as it sounds, that glorious sunset horizon of profit might not be as far away as first thought.
The celebration — and hard work — continues… Big Time.
— You can download the full report in PDF format here.