DLP Financial Woes

[Jordanfamily]

PARIS (AFX) - Shares in Euro Disney SCA fell sharply after a report in Le
Parisien newspaper that the theme park operator may post a loss of 58 mln eur
for the year to September, against a loss of 33.1 mln the previous year.
At 1.13 pm, Euro Disney shares were down 1.67 pct at 0.59 eur, having
dropped as much as 9 pct to 0.55 eur in early trade. The CAC-40 index was down
14.35 points or 0.43 pct at 3,371.84.
The newspaper cited a leaked copy of a confidential study by Arec
consultancy, dated Oct 3 and presented to the company's supervisory board on
Sept 17.
Arec, which was hired by the company's works council, predicts that Euro
Disney will next month announce a net loss for the second year in a row, and
that the loss could widen to 58 mln eur from 33.1 mln the previous year, the
report said.
Visitor numbers barely reached 12.5 mln, although it was the first full year
with the Magic Kingdom and Walt Disney Studios theme parks in operation,
according to Arec.
The total is 600,000 less than the previous year and 2 mln less than
predicted by Euro Disney management, the newspaper noted.
The number of guests at Euro Disney's hotels was down, as was spending per
customer, Arec said.

Euro Disney said it would not comment on figures that did not come from its
own accountants, Le Parisien reported.
Talks on the company's financing are continuing, Euro Disney management
said, according to the newspaper, adding that full-year results and its 2004
strategy will be published in mid-November.
equitynext@afxnews.com

 

[Syl]

I read about DLP'sfinancial woes whilst on my summer hols in Italy. As I had regaled all my friends and relatives about the huge sums of money we left behind during our visit to DLP in May 2003, they were all rather puzzled by these reports, as I certainly was.
Looking at it realistically, it must be so expensive to keep the site in tip top condition, and employ all those helpful staff members.
Well, I'm having to save up to go again, as my girls have decreed that only a long stay at the Disney Hotel itself will suffice!