Euro Disney’s Net Loss Widens
Euro Disney SCA, operator of Disneyland Resort Paris, on Wednesday posted a wider net loss for its latest fiscal year as its costs increased.
Its loss for the 2005-2006 fiscal year was 88.6 million euros ($113.4 million), widening from a loss of 53.1 million euros in the previous year.
Costs and expenses for fiscal year 2006 increased 1.6 percent to 1.09 billion euros ($1.39 billion) from 1.07 billion euros, "largely due to increases in labor costs and business tax," the company said. There were also costs associated with the opening of a new ride, Buzz Lightyear Laser Blast.
Revenues for the year rose 4.5 percent to 1.09 billion euros ($1.39 billion) from 1.04 billion euros a year ago, while the operating margin was negative by 2.4 million euros ($3 million), compared with a negative operating margin of 31.9 million euros a year ago.
"We believe that our growth strategy is delivering its benefits as we remain focused on improving our margins, while continuing to provide our guests with a unique experience," Karl Holz, chairman and chief executive, said in the statement.
"These efforts contributed to a 30 percent improvement in our operating margin before depreciation and amortization," he added.
Theme park revenue increased 5.4 percent to 579.2 million euros ($741 million) from 549.7 million euros in the prior year. The improvement was attributed mainly to increased attendance and average spending per guest on admission.
Hotels and Disney Village revenues increased 4.2 percent to 412.2 million euros ($527.6 million) from 395.4 million euros a year ago, thanks to higher hotel occupancy.
The Walt Disney Co. owns 40 percent of Euro Disney.