Euro Disney sees its losses increase

The number one attraction of Europe still has its
financial problems.

We have followed its evolution since before the project
started and wondered if the success formula of the USA
and Japan would work on a continent in which vacations
are long and people are careful to pace their expenditures.
Long stays are Euro Disney in which expensive hotels would be
filled is not part of the European way of doing things.
Those visiting would make their visits as part of a general
vacation and only stay a day or two.

Initially the project was ran by Americans, who, of course
knew everything but ended up knowing nothing. So Europeans
were brought in and the project did pick up. However,
it still limps along since the original concept had some
deep faults. Overall financing was one of them. They may
work their way out. It is too big to fail! Somewhat
like Eurotunnel.

Earl

*****




Mousekeeping adds to Euro Disney loss

Flora Wisdorff
Wednesday November 10, 2004
The Guardian

French theme park operator Euro Disney saw its losses increase last year due
to royalty payments, the costs of its financial restructuring and the
failure to attract more visitors.

Two months after the company announced a massive debt restructuring deal to
keep it afloat, Euro Disney posted a net loss of €145m (£101m) for the year
to September 30, compared with a loss of €56m the previous year. Revenue was
virtually unchanged at €1.05bn.

Euro Disney blamed the figures on a tough environment for the travel sector.
"The company's annual results reflect flat visitor numbers and turnover in
another difficult year for the European travel and tourism industry,"
chairman Andre Lacroix said. The terrorist attacks on the US in 2001 had
plunged the whole sector into crisis, which lasted well into this year. Some
12.4 million people visited the Disneyland Resort Paris and Walt Disney
Studios parks outside the French capital in the year - the same as the
previous 12 months. Occupancy rates at the hotels the company leases around
the Disneyland Paris site dropped 4.6% to 80.5%.

The company also saw an increase in costs, partly because it had to resume
royalty payments to its 39% shareholder Walt Disney for the use of the
Mickey Mouse characters, which totalled €58m. It had previously negotiated a
waiver of these fees because of its financial problems. Euro Disney paid
€12.6m in fees linked to its financial restructuring, and €9.2m for
scrapping its "Visionarium" ride that will be replaced by another in 2006.


Net debt stood at €2.05bn. As part of the debt restructuring, Euro Disney
needs to raise €250m in a rights issue it hopes to carry out next January if
market conditions permit. The move will be put to shareholders for approval
on December 17.

"Four years would be the range in which we would start to see the full
benefits of the re-structuring and its impact on our income statement," said
finance director Jeff Speed. "It is not going to be overnight that we see a
return to profitability. It is going to take some time to see the full
impact of the restructuring."

wrote in message
...
The number one attraction of Europe still has its
financial problems.

We have followed its evolution since before the project
started and wondered if the success formula of the USA
and Japan would work on a continent in which vacations
are long and people are careful to pace their expenditures.

In Anaheim Disneyland food and drinks are sold at prices similar to
outside. One does not have the feeling of being ripped off all day.

We took our own food, but the prices inside didn't seem as ridiculously
expensive as I'd imagined. About the same as a theme park in the UK.

It's over priced and the queues are too long, once they get that
message, they might be able to start thinking about making a profit
or winding up the company. Nobody in his right mind is going to travel
hundreds of kilometres to spend a day standing in queues all day more
than once.

That was our view, but as the queues are so long, obviously lots of people are
going! I find it hard to believe they aren't making a massive profit with the
prices they charge and the number of people they get through the turnstiles.

There are plenty of other theme parks in Europe offering similar or
better entertainment at a far lower price and with far less queuing.

Are they still searching people for food and drinks, that people try
to smuggle in rather than pay the rip off prices inside?

Eh? We saw nothing saying we can't take our own food in. We even ate it in the
restaurant as it was freezing outside. Staff clearing the tables took no notice.
There were no signs like you often get in UK theme parks saying only food that
is purchased on the premises can be eaten there. They even had microwaves for
use by visitors. Just wish we'd taken our own flask of tea, not because of the
price but because of the 45 minute queue to buy some!

I think it will go bust.

There's something seriously wrong if a theme park that charges such high prices
and gets such large numbers of visitors goes bust. The thing about "royalty
payments" was interesting, is this payments from Euro Disney to the Disney
corporation in the USA, ie internal funny money? I bet Disney as a whole *is*
making money out of EuroDisney.

--
Andy

wrote in message
...
The number one attraction of Europe still has its
financial problems.

We have followed its evolution since before the project
started and wondered if the success formula of the USA
and Japan would work on a continent in which vacations
are long and people are careful to pace their expenditures.

In Anaheim Disneyland food and drinks are sold at prices similar to
outside. One does not have the feeling of being ripped off all day.

We took our own food, but the prices inside didn't seem as ridiculously
expensive as I'd imagined. About the same as a theme park in the UK.

It's over priced and the queues are too long, once they get that
message, they might be able to start thinking about making a profit
or winding up the company. Nobody in his right mind is going to travel
hundreds of kilometres to spend a day standing in queues all day more
than once.

That was our view, but as the queues are so long, obviously lots of people are
going! I find it hard to believe they aren't making a massive profit with the
prices they charge and the number of people they get through the turnstiles.

There are plenty of other theme parks in Europe offering similar or
better entertainment at a far lower price and with far less queuing.

Are they still searching people for food and drinks, that people try
to smuggle in rather than pay the rip off prices inside?

Eh? We saw nothing saying we can't take our own food in. We even ate it in the
restaurant as it was freezing outside. Staff clearing the tables took no notice.
There were no signs like you often get in UK theme parks saying only food that
is purchased on the premises can be eaten there. They even had microwaves for
use by visitors. Just wish we'd taken our own flask of tea, not because of the
price but because of the 45 minute queue to buy some!

I think it will go bust.

There's something seriously wrong if a theme park that charges such high prices
and gets such large numbers of visitors goes bust. The thing about "royalty
payments" was interesting, is this payments from Euro Disney to the Disney
corporation in the USA, ie internal funny money? I bet Disney as a whole *is*
making money out of EuroDisney.

--
Andy

There's something seriously wrong if a theme park that charges such high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the Disney
corporation in the USA, ie internal funny money? I bet Disney as a whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with shareholders :-(

There's something seriously wrong if a theme park that charges such high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the Disney
corporation in the USA, ie internal funny money? I bet Disney as a whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with shareholders :-(

There's something seriously wrong if a theme park that charges such high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the Disney
corporation in the USA, ie internal funny money? I bet Disney as a whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with shareholders :-(

wrote in message
...
On Wed, 10 Nov 2004 13:25:39 -0000, "Miss L. Toe"
wrote:

There's something seriously wrong if a theme park that charges such
high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the
Disney
corporation in the USA, ie internal funny money? I bet Disney as a
whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with shareholders
:-(

It can't just be the fee. In 2000 they made some sort of profit -
Euro42 million AFAIR, since then they have been making bigger and
bigger losses.

A few years ago when they were in deep financial trouble the fee was
suspended, I guess it has started again.

Also they have been borowing up to the hilt - and maybe more - for
expansion.

But my shares are worth so little I havent bothered to read the financial
reports in full. At least I didnt buy them at flotation :-)

wrote in message
...
On Wed, 10 Nov 2004 14:18:34 -0000, "Miss L. Toe"
wrote:


wrote in message
.. .
On Wed, 10 Nov 2004 13:25:39 -0000, "Miss L. Toe"
wrote:

There's something seriously wrong if a theme park that charges such
high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the
Disney
corporation in the USA, ie internal funny money? I bet Disney as a
whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with
shareholders
:-(

It can't just be the fee. In 2000 they made some sort of profit -
Euro42 million AFAIR, since then they have been making bigger and
bigger losses.

A few years ago when they were in deep financial trouble the fee was
suspended, I guess it has started again.

Also they have been borowing up to the hilt - and maybe more - for
expansion.

But my shares are worth so little I havent bothered to read the financial
reports in full. At least I didnt buy them at flotation :-)


and how are your Chunnel & Marconi shares doing? :-)


Didnt buy either of those :-)
But Ferranti made me a big profit - because I sold at the right time.
and Corus is looking good too :-)

wrote in message
...
On Wed, 10 Nov 2004 14:18:34 -0000, "Miss L. Toe"
wrote:


wrote in message
.. .
On Wed, 10 Nov 2004 13:25:39 -0000, "Miss L. Toe"
wrote:

There's something seriously wrong if a theme park that charges such
high
prices
and gets such large numbers of visitors goes bust. The thing about
"royalty
payments" was interesting, is this payments from Euro Disney to the
Disney
corporation in the USA, ie internal funny money? I bet Disney as a
whole
*is*
making money out of EuroDisney.

Yes, it is a nasty high fee to Disney USA.
Because Eurodisney is a totally separate legal entity, with
shareholders
:-(

It can't just be the fee. In 2000 they made some sort of profit -
Euro42 million AFAIR, since then they have been making bigger and
bigger losses.

A few years ago when they were in deep financial trouble the fee was
suspended, I guess it has started again.

Also they have been borowing up to the hilt - and maybe more - for
expansion.

But my shares are worth so little I havent bothered to read the financial
reports in full. At least I didnt buy them at flotation :-)


and how are your Chunnel & Marconi shares doing? :-)


Didnt buy either of those :-)
But Ferranti made me a big profit - because I sold at the right time.
and Corus is looking good too :-)

Andy Pandy wrote:
wrote in message
...

The number one attraction of Europe still has its
financial problems.

We have followed its evolution since before the project
started and wondered if the success formula of the USA
and Japan would work on a continent in which vacations
are long and people are careful to pace their expenditures.


What I just can't figure out is why anyone goes to these Disney places -
other than people with children, I mean. Back in the US I knew people
who went to Disney World almost every year. But when I asked them why
about the only thing that came out was that it was clean. Just what *is*
the attraction? Is it really worth going to?