Euro Disney S.C.A. Reports 2012 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 2012 which ended March 31, 2012 (the "First Half").

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 2012 which ended March 31, 2012 (the "First Half").

Key Operating Statistics ^[1]

Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:

"The challenging economic environment has impacted attendance and occupancy compared to last year, but we are encouraged by our ability to continue to improve guest spending and resort revenues.

"This semester, we significantly increased our investments in the guest experience, through new entertainment and product offerings as well as targeted refurbishments in both our parks and hotels. These investments are essential for our 20^th Anniversary celebration launched in April and the long term success of Disneyland Paris.

"As part of this celebration, we opened our new night-time spectacular, Disney Dreams^®!, which brings Disney stories to life using the castle as a backdrop, and which is truly a unique experience for our guests. We remain excited about the 20^th Anniversary festivities and the growth opportunity it presents. We look forward to celebrating this milestone with our guests, Cast Members, community and partners in the months ahead."

Seasonality

The Group's business is subject to the effects of seasonality and the annual results are significantly dependent on the second half of the 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.  

Revenues by Operating Segment

n/m: not meaningful

Resort operating segment revenues increased 1% to € 551.1 million from € 545.8 million in the prior-year period.

Theme parks revenues increased 2% to € 304.8 million from € 299.8 million in the prior-year period, primarily due to a 2% increase in average spending per guest to € 44.11, partly offset by a 1% decrease in attendance to 6.8 million. The increase in average spending per guest was due to higher spending on admissions and merchandise. The decrease in attendance primarily resulted from fewer guests visiting from Italy, the Netherlands, Belgium and Spain, partly offset by a higher number of guests visiting from France.

Hotels and Disney Village^® revenues decreased 1% to € 224.5 million from € 226.9 million in the prior-year period, reflecting a 3.6 percentage point decrease in hotel occupancy to 79.8% and a temporary reduced restaurant capacity in the Disney Village, partly offset by a 4% increase in average spending per room to € 207.29. The decrease in hotel occupancy resulted from 33,000 fewer room nights sold primarily due to fewer guests visiting from Italy and the United Kingdom, as well as lower business group activity, partly offset by more French guests staying overnight. The reduced Disney Village restaurant capacity was due to certain rehabilitations before the launch of the 20^th Anniversary celebration. The increase in average spending per room resulted from higher daily room rates, partly offset by lower spending on food and beverage and merchandise.

Other revenues increased by € 2.7 million to € 21.8 million, compared to € 19.1 million in the prior-year, primarily due to higher sponsorship revenues and increased revenues on transportation and other travel services sold to guests.

Real estate development operating segment revenues decreased by € 10.1 million to € 1.3 million, compared to € 11.4 million in the prior-year period. This decrease was due to a lower number of transactions closed in the First Half compared with the prior-year period.

Costs and Expenses

Direct operating costs increased by € 13.9 million compared to the prior-year period, mainly due to labor rate inflation and costs associated with the preparation of the Resort's 20^th Anniversary celebration, partly offset by reduced costs associated with lower real estate development activity.

Marketing and sales expenses increased by € 2.4 million due to higher labor costs and increased sales activities.

General and administrative expenses increased by € 2.5 million due to higher labor costs.

Net Financial Charges

Financial income increased by € 0.7 million compared to the prior-year period due to higher short-term interest rates, partly offset by a lower average level of cash and cash equivalents.

Financial expense decreased by € 1.9 million compared to the prior-year period primarily due to lower average borrowings.

Net Loss

For the First Half, the net loss of the Group amounted to € 120.9 million compared to € 99.5 million for the
prior-year period. Net loss attributable to equity holders of the parent amounted to € 100.8 million and net loss attributable to non-controlling interests amounted to € 20.1 million.  

Cash flows

Cash and cash equivalents as of March 31, 2012 were € 230.4 million, down € 135.7 million compared with September 30, 2011, and down € 93.3 million compared with March 31, 2011. These variances resulted from:

Free cash flow used for the First Half was € 71.5 million compared to € 31.2 million used in the prior-year period.

Cash flow generated by operating activities for the First Half totaled € 12.3 million compared to € 6.4 million generated in the prior-year period. This increase resulted from lower working capital requirements, partly offset by decreased operating performance during the First Half. Changes in working capital during the First Half benefited from the additional deferral into long-term debt of € 8.9 million of prior-year royalties, while no such benefit occurred in the prior-year period.

Cash flow used in investing activities for the First Half totaled € 83.8 million compared to € 37.6 million used in the prior-year period. This increase reflected investments related to a multi-year expansion of the Walt Disney Studios^® Park, which includes a new attraction, and investments to enhance the overall guest experience for Disneyland^®Paris' 20^th  Anniversary celebration.

Cash flow used in financing activities totaled € 64.2 million for the First Half compared to € 45.4 million used in the prior-year period. This increase mainly reflected the scheduled repayment of bank borrowings made by the Group during the First Half.

Financial Covenants

The Group has defined annual performance objectives under its debt agreements and must also respect certain financial covenants.

For fiscal year 2012, if compliance with financial performance covenants cannot be achieved, the Group will have to appropriately reduce operating costs, curtail a portion of planned capital expenditures, sell assets and/or seek assistance from TWDC or other parties as permitted under the debt agreements. Although no assurances can be given, management believes the Group has adequate cash and liquidity for the foreseeable future based on its existing cash position, liquidity from the credit lines available from TWDC, and the benefit of the conditional deferral of certain royalties, management fees and interest.

Update on recent and upcoming events

Disneyland^®Paris' 20^th Anniversary

The celebration of Disneyland^®Paris 20^th Anniversary was launched in April. A number of brand new experiences await guests, including Disney Dreams^®!, a night-time show with the Disneyland Castle as a backdrop that features classic Disney storytelling brought to life with the latest technical special effects. There are also new opportunities to meet Disney characters, including Disney Magic on Parade! and Disney's 20^th Anniversary Celebration Train.

Economic and social impact of Disneyland Paris

A study on the socio-economic impact of Disneyland^®Paris was issued on March 14, 2012 by the interministerial Delegation for the Euro Disney project in France. The study covers the period beginning in 1992, opening year of the destination, to 2012. The study confirms Disneyland Paris as Europe's number one tourist destination and as the fifth largest hotel complex site in France. The notable conclusions for the last 20 years are as follows:

This study can be found on the Company's website and is available in French only: http://corporate.disneylandparis.fr/CORP/FR/Neutral/Images/fr-2012-03-14-dossier-presse-etude-de-contribution-economique-sociale.pdf

Scheduled Debt Repayments

The Group plans to repay € 72.1 million of its borrowings in the last six months of fiscal year 2012, consistent with the scheduled maturities.

First Half Results Webcast: May 7, 2012 at 11:00 CET

To connect to the webcast and consult the analyst presentation: 

http://corporate.disneylandparis.com/investor-relations/publications/index.xhtml

Additional Financial Information can be found on the Internet at http://corporate.disneylandparis.com

 

Code ISIN: FR0010540740            

Code Reuters : EDLP.PA

Code Bloomberg : EDL:FP

 

The Group operates Disneyland^® Paris, which includes: Disneyland^® Park, Walt Disney Studios^® Park, seven themed hotels with approximately 5,800 rooms (excluding approximately 2,400 additional third-party rooms located on the site), two convention centers, Disney Village^®, a dining, shopping and entertainment center, and a 27-hole golf course. The Group's operating activities also include the development of the 2,230-hectare site, half of which is yet to be developed. Euro Disney S.C.A.'s shares are listed and traded on Euronext Paris.

Attachments:    Exhibit 1 - Consolidated Statement of Income

    Exhibit 2 - Consolidated Segment Statement of Income

        Exhibit 3 - Consolidated Statement of Financial Position

Exhibit 4 - Consolidated Statement of Cash Flows

Exhibit 5 - Consolidated Statement of Changes in Equity

Exhibit 6 - Statement of Changes in Borrowings

Exhibit 7 - Definitions

EXHIBIT 1

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

CONSOLIDATED STATEMENT OF INCOME

n/m: not meaningful

n/a: not applicable

EXHIBIT 2

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

CONSOLIDATED SEGMENT STATEMENT OF INCOME

Resort operating segment

n/m: not meaningful.

n/a: not applicable.

Real estate development operating segment

n/m: not meaningful.

n/a: not applicable.

EXHIBIT 3

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

EXHIBIT 4

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

CONSOLIDATED STATEMENT OF CASH FLOWS

SUPPLEMENTAL CASH FLOW INFORMATION

EXHIBIT 5

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 ⁽¹⁾    As of March 31, 2012, Non-controlling interests mainly corresponded to the accumulated variable Phase IA rent amounts and interest that are     legally for the benefit of the partners of the Phase IA financing company. For more information, see the Group's 2011 reference document,     section B.3."Consolidated Financial Statements", notes 1.2."Disneyland^® Paris Financing" and 11."Minority Interests".

EXHIBIT 6

STATEMENT OF CHANGES IN BORROWINGS

EXHIBIT 7

EURO DISNEY S.C.A.

Fiscal Year 2012

First Half Results

Six Months Ended March 31, 2012

DEFINITIONS

EBITDA 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.

Free cash flow 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.

Theme parks attendance 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.

Average spending per guest 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.

Hotel occupancy rate is the average daily rooms occupied as a percentage of total room inventory (total room inventory is approximately 5,800 rooms).

Average spending per room is the average daily room price and spending on food, beverage and merchandise and other services sold in hotels, excluding value added tax.

1.     Please refer to Exhibit 7 for the definition of EBITDA, Free cash flow and key operating statistics.

 

Press Contact
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