Spettacolo
Euro Disney S.C.A. Reports 2014 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 2014 which ended March 31, 2014 (the "First Half").
Commenting on the results, , said:
Ratatouille: l'Aventure Totalement Toquée de Rémy
1. Please refer to Exhibit 7 for the definition of EBITDA, Free cash flow and key operating statistics.
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 . In addition, results for the First Half have been unfavorably impacted by a shift in the Easter vacation period to the second semester for all the Group's key markets except France . Consequently, the operating results for the First Half are not necessarily indicative of results to be expected for the full fiscal year.
revenues decreased 5% to €530.8 million from €561.1 million in the prior-year period.
Theme parks revenues decreased 4% to €298.3 million from €311.4 million in the prior-year period due to a 6% decrease in attendance to 6.3 million, partly offset by a 2% increase in average spending per guest to €46.83. The decrease in attendance primarily reflected fewer guests visiting from France , the United Kingdom and Spain . The increase in average spending per guest was due to higher spending on admissions and merchandise.
Hotels and Disney Village revenues decreased 6% to €214.5 million from €228.2 million in the prior-year period, resulting from a 5.7 percentage point decrease in hotel occupancy to 72.3% and a 3% decrease in Disney Village revenues. The decrease in hotel occupancy was due to 59,000 fewer room nights sold compared to the prior-year period, driven by lower business group activity as well as fewer guests visiting from Spain and the Netherlands . Average spending per room remained stable, reflecting higher daily room rates offset by lower spending on food and beverage, and merchandise.
Other revenues decreased by €3.5 million to €18.0 million from €21.5 million in the prior-year period, mainly due to lower sponsorship revenues.
revenues decreased by €4.1 million to €2.5 million, from €6.6 million in the prior-year period. This decrease was due to a larger land sale closed in the prior-year period than the land sale closed in the First Half. 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 decreased 2% compared to the prior-year period due to reduced costs associated with lower resort volumes and real estate development activity, as well as a higher tax credit recorded as a reduction of labor costs ( "CICE"). These decreases are partially offset by labor rate inflation.
Marketing and sales expenses decreased 8% compared to the prior-year period driven by a change in the timing of marketing and sales activities.
General and administrative expenses increased 5% compared to the prior-year period, primarily driven by the costs of a multi-year program to improve employee facilities.
Financial income decreased by €0.2 million compared to the prior-year period.
Financial expense decreased by €1.0 million compared to the prior-year period mainly due to higher interest expense capitalized as part of the construction cost of the new attraction based on the DisneyPixar movie .
For the First Half, the net loss of the Group amounted to €126.2 million compared to €108.4 million for the prior-year period.
Cash and cash equivalents as of March 31, 2014 were €54.1 million, down €23.9 million compared with September 30, 2013, and down €14.6 million compared with March 31, 2013 . These variances resulted from:
Free cash flow used for the First Half was €123.7 million compared to €72.0 million used in the prior-year period.
Cash flow used in operating activities for the First Half totaled €56.7 million compared to €19.8 million used in the prior-year period. This decrease resulted from higher working capital requirements as well as decreased operating performance during the First Half.
Cash flow used in investing activities for the First Half totaled €67.0 million compared to €52.2 million used in the prior-year period. This increase included investments related to the new attraction themed after the DisneyPixar movie which is scheduled to open in July.
Cash flow generated by financing activities totaled €99.8 million for the First Half compared to €26.4 million generated in the prior-year period. During the First Half, the Group drew an amount of €100.0 million from the €250.0 million standby revolving credit facility granted by The Walt Disney Company ("TWDC") . This amount can be repaid at any time. In the prior-year period, the Group drew €30.0 million from this standby revolving credit facility.
In addition, the Group is required to repay €11.4 million of its long-term loans from TWDC at the end of fiscal year 2014, in accordance with the scheduled maturities.
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2. Please refer to note 12.1."TWDC Debt" of the Group's 2013 consolidated financial statements, included in the Group's 2013 Reference Document.
Last year, the Group announced a new attraction based on the DisneyPixar movie This unique attraction, which has since been scheduled to open in the Walt Disney Studios Park in July 2014 , will take guests into the world of Remy - a talented young rat who dreams of becoming a renowned French chef. Disney storytelling, combined with state-of-the-art technology, will create the magic of this romantic, larger-than-life, Parisian experience. For more information, please refer to the press release issued on February 28, 2013 which is available on the Group's website.
Since April 5 , Disneyland Paris has been transformed to , a new three-month seasonal celebration. Guests can enjoy a world where flowers and music immerse them into the magic of the spring season. This new event swings to the rhythm of over 100 performers, including 90 dancers. Disney characters are also featured in their brand new costumes specially made for this occasion.
Next scheduled release: Availability of the 2014 Interim Report in May 2014
Additional Financial Information can be found on the Internet at http://corporate.disneylandparis.com
Attachments:
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DEFINITIONS
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.
Laurent Manologlou
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: laurent.manologlou@disney.com
Olivier Lambert
Tel: +331-64-74-58-55
Fax: +331-64-74-56-36
e-mail: olivier.lambert@disney.com
François Banon
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: francois.banon@disney.com