Modest gains in Third Quarter results as Fiscal Year 2008 holds strong

Thursday, 24th July 2008 at 17:59

ImageEuro Disney SCA, the group which operates Disneyland Resort Paris, today announced its Third Quarter 2008 financial results. Impressive growth across the nine months so far hides only modest gains in the past three...,

The financial year of 2008 thus far has been nothing short of a fairytale success. For the nine months ended 30th June 2008, overall revenues increased an impressive 12% on the same period last year.

Revenues for the Third Quarter itself rose only 3%, however, which, despite the displacement of the important Easter Holiday compared to the 2007 results, could suggest that the resort is having to work hard this Summer to pushing itself beyond the record achievements made last year.

Here are the main points of this announcement, which does not include exact numbers for statistics such as park attendance, accumulating all the figures so far for the past nine months:

‘¢ Overall revenues for the nine months ended June 30, 2008 increased 12% to € 937.4 million from € 834.3 million in the prior-year period.

‘¢ Theme parks revenues increased 13% to € 498.4 million from € 443.0 million in the prior-year period, driven by increases in attendance and average spending per guest.

‘¢ Hotels and Disney Village revenues increased 10% to € 371.4 million from € 338.0 million in the prior-year period, primarily driven by increases in average spending per room and hotel occupancy.

‘¢ Real estate revenues increased € 16.8 million from the prior-year period to € 25.6 million, principally resulting from € 12.5 million of revenue related to the first quarter 2008 sale of a property in Val d’Europe which had been subject to a long term ground lease.

‘¢ Revenues for the Third Quarter increased 3% to € 331.9 million despite the shift of the Easter Holiday in some of our key markets from April in the prior-year period to March in the current-year period.

Commenting on the results, Karl L. Holz, Chief Executive Officer of Euro Disney S.A.S, said:

“We are pleased with our continued solid results through the Third Quarter, as we move into the peak summer season. The Celebration Continues… Big Time!, particularly as our guests respond positively to our new offerings in the Walt Disney Studios Park. Our guests are enjoying the thrills of The Twilight Zone Tower of Terror and the magic of an interactive experience with a favorite Disney character in Stitch Live!. High School Musical 2 is also creating emotional connections through high energy performances and sing-along dance routines.

Our teams are fully mobilized to provide a high-quality guest experience through a combination of new services, iconic attractions and immersive entertainment that only Disney can create.”

So, how are things looking? Overall, very good indeed. There are no horror stories here or any reports which might make a shareholder nervous for the full Annual Report in November. The waters are calm, the course steady. Euro Disney SCA’s position is getting ever stronger.

With the displacement of the Easter Holiday this year to the second quarter, however, it is hard to gauge exactly how well the resort is still growing. An overall gain of just 3% in revenues compared to the same period last year does on first glance seem rather worrying considering the vast expenditure just made to build and promote an attraction as large as The Twilight Zone Tower of Terror, especially when you consider park attendance itself increased just 1% in the three months.

Worrying on one hand, yes, but on the other, it is still a gain — and a gain compared to the record 14.5 million visitors of last year at that. The resort is well on course to post a brand new (if only very modestly higher) visitor record in its Annual Report for 2008. Compared to the launch of Walt Disney Studios Park in 2002, which brought only a tiny attendance growth and a severe drop-off the next year, this at least proves that the incremental series of investments and relaunch of the destination for its 15th Anniversary was well-formulated and has good staying power.

The record achievements of last year will be hard to build upon in a big way so quickly, true, but they weren’t a flash in the pan — that’s the most important thing.

— You can see the full report as a PDF download here.

— Find our previous report on the First Half 2008 results here.

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Comments

  • Liam Mackessy  24th July 2008, 18:42

    WOW!! This is crazy, My dad and I were just wondering, if they were making money… Freaky…

  • I think the promotion of TOT could be much better here in the Netherlands (I guess in many other country’s too) With the opening of Euro Disney itself and with the opening of Space Mountain almost everybody knew and talked about it. Now with the opening of TOT I’ve only seen the special ad for TOT on television twice, and the 2 seconds in the 15th ad don’t make a real sense I guess. I think promoting is one their weakest points the last years. When I’m talking about dlrp is having 2 parks they think your nuts too. So there is something wrong… I guess If they would promote TOT in whole europe just like they did with the opening of Euro Disney and SM, the result would be much better then the good results we are seeing now!

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