Euro Disney sees revs shrink 2.4%

Euro Disney SCA Friday reported a 2.4% revenue fall for the second quarter as the theme park struggled to attract visitors while economic troubles in Europe held down tourism.

Euro Disney said revenue at the year-old Magic Kingdom east of Paris fell to $ 244 million from $ 250 million for the same period last year.

The company also confirmed a loss of $ 83 million from April 1 through June 30, as it predicted last month.

Revenue was lower, even though the park was open fewer days during the same three-month period last year. The park opened April 12, 1992.

A company spokeswoman declined to comment on the report for the period, the third quarter of the company’s second fiscal year.

Last month, the company began reevaluating its operations and is considering a financial restructuring, said the spokeswoman.

The company blamed the losses on lower-than-expected spending on food and merchandise and lower occupancy rates at the theme park’s hotels.

The company also attributed the losses to high interest, lease and depreciation charges from the large initial investment.

In the fiscal year that ended Sept. 30, 1992, Euro Disney lost $ 31 million. Despite Euro Disney’s difficulties, Walt Disney Co. last month reported a 17% rise in profits for its third quarter. The Burbank-based company owns 49% of Euro Disney.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety

Loading