Annual losses at French theme park Disneyland Resort Paris have vastly increased due its financial restructuring and inability to attract higher visitor numbers.
The park’s operator, Euro Disney SCA, posted a net loss of €145m (£101m, $187m) for the year to 30 September, compared with a 2003 loss of €58m.
Operating loss stood at €23.9m (£16.6m, $30m), down €56m from operating profits of €32m last year. Although visitor numbers remained flat at 12.4 million, individual visitor spend did increase over the year.
However, this was offset by lower occupancy rates at the Disney-themed hotels which fell by 4.6 per cent to 80.5 per cent. Overall, hotel accommodation revenues were down 3 per cent on last year’s figure, to €405.2m (£281m, $522m).
Euro Disney’s considerable increase in costs was also attributed to its 39 per cent shareholder, Walt Disney, resuming royalty payments of €58m for the use of its characters, such as Mickey Mouse.
This repayment had been temporarily frozen due to the theme park’s continuing financial difficulties.
Euro Disney also lost a further €9.2m (£6.4m, $11.8m) for scrapping its Visionarium ride, which will be replaced by another ride in 2006, and paid €12.6m (£8.75m, $16.2m) in fees due to its financial restructuring programme and.
Part of the restructure requires Euro Disney to raise €250m (£173.6m, $332m) in a rights issue, which it currently intends to carry out in January 2005 and be put before shareholders on 17 December.
Euro Disney’s chair and chief executive officer, André Lacroix, said: “The company’s annual results reflect a flat attendance and revenue performance in another difficult year for the European travel and tourism industry, combined with an increase in the cost base mainly due to the resumption of royalties and management fees, as well as additional costs associated with the financial restructuring.” Details: www.disneylandparis.com
