Spettacolo
EURO DISNEY S.C.A.: Fiscal Year 2015 – Announcement of First Half Results
Euro Disney S.C.A. (the "Company"), parent company of Euro Disney Associés S.C.A. ("EDA"), operator of Disneyland Paris , reported today the results of its consolidated group (the "Group") for the first six months of fiscal year 2015 which ended March 31, 2015 (the "First Half").
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1. Comparative figures for the first half 2014 and fiscal year 2014 include restatements related to the application of IFRIC 21 "Levies".
2. Please refer to Exhibit 7 for the definition of EBITDA, Free cash flow and key operating statistics.
Commenting on the results, , said:
Frozen Star Wars .
During the First Half, the Group implemented the recapitalization and debt reduction plan announced on October 6, 2014, backed by The Walt Disney Company ("TWDC"), which amounted to approximately €1 billion (the "Recapitalization Plan"). The Recapitalization Plan aimed at improving the Group's financial position and enabling it to continue investing in Disneyland Paris so as to improve the guest experience.
The main elements of this Recapitalization Plan are presented below:
For more details on the different steps of the Recapitalization Plan, please refer to the press releases and the other documents related to this plan, which are available on the Group's website ( http://corporate.disneylandparis.com ).
The Group's business is subject to the effects of seasonality and the annual results are significantly dependent on the second half of the fiscal year, which traditionally includes the high season at Disneyland Paris. Consequently, the operating results for the First Half are not necessarily indicative of results to be expected for the full fiscal year 2015.
revenues increased 11% to €591.1 million from €530.8 million in the prior-year period.
Theme parks revenues increased 14% to €341.1 million from €298.3 million in the prior-year period due to an 8% increase in average spending per guest to €50.57 and a 6% increase in attendance to 6.7 million. The increase in average spending per guest was due to higher spending on admissions, food and beverage and merchandise. The increase in attendance was due to more guests visiting from the United Kingdom , France and Spain .
Hotels and Disney Village revenues increased 9% to €232.9 million from €214.5 million in the prior-year period, resulting from a 4.8 percentage point increase in hotel occupancy to 77.1%, a 9% increase in Disney Village revenues and a 2% increase in average spending per room to €212.15. The increase in hotel occupancy resulted from 50,000 additional room nights sold compared to the prior-year period, due to more guests staying at the Group's hotels from the United Kingdom , France and Spain , partly offset by lower guests from the Netherlands . The increase in average spending per room was due to higher spending on food and beverage and higher daily room rates, partly offset by lower spending on merchandise.
revenues decreased by €1.9 million to €0.6 million, from €2.5 million in the prior-year period. This decrease was due to lower land sale activity than in the prior-year period. Given the nature of the Group's real estate development activity, the number and size of transactions vary from one year to the next.
Direct operating costs increased 10% compared to the prior-year period mainly due to costs associated with higher resort volumes as well as costs related to the enhancement of the guest experience, including depreciation of new assets, labor costs related to new attraction based on the DisneyPixar movie entertainment offerings and higher staffing levels.
Marketing and sales expenses increased 14% compared to the prior-year period mainly due to incremental media campaigns in certain markets and for new products.
General and administrative expenses increased 8% compared to the prior-year period reflecting labor rate inflation and new positions for social programs in line with regulatory obligations and agreements as well as technology initiatives.
During the First Half, the Group received from The Walt Disney Company ( France ) S.A.S. a €24.5 million fee for the termination, before the contractual term, of a lease agreement related to office space located in the Walt Disney Studios Park.
Net financial charges increased 2% compared to the prior-year period primarily due to a lower amount of capitalized interest expense as well as certain one-time costs related to the Recapitalization Plan, partially offset by lower interest expense on borrowings that were reduced as a direct result of the Recapitalization Plan.
For the First Half, the net loss of the Group amounted to €118.8 million compared to €135.8 million for the prior-year period.
Cash and cash equivalents as of March 31, 2015 were €253.4 million, up €204.1 million compared with September 30, 2014, and up €199.3 million compared with March 31, 2014 . These variances resulted from:
Free cash flow used for the First Half was €66.6 million compared to €123.7 million used in the prior-year period.
Cash flow used in operating activities for the First Half totaled €16.3 million compared to €56.7 million used in the prior-year period. This improvement resulted from cash proceeds from a one-time gain related to the early termination of a lease (see section "Other Income / (Expense)" above for more information) as well as lower working capital requirements.
Cash flow used in investing activities for the First Half totaled €50.3 million compared to €67.0 million used in the prior-year period. This decrease was mainly due to the repayment of cash advances received from entities in charge of the Villages Nature project.
Cash flow generated by financing activities totaled €270.7 million for the First Half compared to €99.8 million generated in the prior-year period.
During the First Half, before the implementation of the Recapitalization Plan, the Group drew €100.0 million from a standby revolving credit facility of €250.0 million. The same amount was drawn in the prior-year period.
As part of the Recapitalization Plan, the Group received €422.8 million of cash following the capital increases of the Company and of EDA. This amount was partly offset by €250.0 million repayments on standby revolving credit facilities previously granted by TWDC.
1. For more details on the standby revolving credit facilities, please refer to note 12.3. "Standby Revolving Credit Facilities" of the Group's 2014 consolidated financial statements, included in the Group's 2014 Reference Document.
As a result of the Company's capital increases, EDL Holding Company, LLC, Euro Disney Investments S.A.S. and EDL Corporation S.A.S. reported that their interests in the Company crossed certain thresholds. As a result, they were required to launch a mandatory tender offer on the Company's shares that they did not own (the "Mandatory Tender Offer"). The French (the "AMF") issued its clearance decision ( ) on this Mandatory Tender Offer on March 31, 2015 .
The Company was informed that an appeal against the clearance decision has been filed on April 9, 2015 with the Court of Appeal of Paris ( ). In its notice no. 215C0446 dated April 14, 2015 , the AMF has indicated that, pending the decision of the Court of Appeal of Paris , the Mandatory Tender Offer has been extended and new information will be published on a modified schedule.
For more details on the Mandatory Tender Offer, please refer to the press release and the other documents which are available on the Group's website (http://corporate.disneylandparis.com).
Until May 31, 2015, Disneyland Paris celebrates the spring season highlighting nature and the awakening of the season. Disneyland Park has been transformed into a floral garden with brand new musical performances to give our guests the ultimate springtime experience.
Starting June 1 , Disneyland Paris will celebrate a " Summer Fun" with a brand new show, an ice-themed musical production combining singing and dancing with guest participation. The famous sisters, Anna and Elsa, along with their faithful companions, Kristoff and Olaf the funny snowman, will take to the stage to bring the show to life and expand the unique experience of live.
This summer, the Jedi Training Academy will open its doors at Disneyland Paris to aspiring Padawans aged 7 to 12 to learn to use the Force from a true Jedi Master . Kids visiting Disneyland Paris will meet the heroes of the epic saga through a unique and interactive experience that the whole family can enjoy. The adventure will begin on July 11 .
Next scheduled release: Availability of the 2015 Interim Report in May 2015
Additional Financial Information can be found on the Internet at http://corporate.disneylandparis.com
CONSOLIDATED STATEMENT OF CASH FLOWS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
corresponds to earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that EBITDA is a useful tool for evaluating the Group's performance.
is cash generated by operating activities less cash used in investing activities. Free cash flow is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that Free cash flow is a useful tool for evaluating the Group's performance.
corresponds to the attendance recorded on a "first click" basis, meaning that a person visiting both parks in a single day is counted as only one visitor.
is the average daily admission price and spending on food, beverage and merchandise and other services sold in the theme parks, excluding value added tax.
is the average daily rooms occupied as a percentage of total room inventory (total room inventory is approximately 5,800 rooms).
is the average daily room price and spending on food, beverage and merchandise and other services sold in hotels, excluding value added tax.
Press Contact
Cathy Pianon
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Yoann Nguyen
Tel: +331-64-74-58-55
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e-mail:yoann.nguyen@disney.com
Corporate Communication
François Banon
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail:francois.banon@disney.com