×

Paris mouse trap

Royalties dent Euro Disney net for year

NEW YORK — Disneyland Paris theme park operator Euro Disney said Tuesday that royalties and management fees paid to parent Walt Disney Corp. dropped its net income by 47% to 23.6 million euros ($24.8 million) for the fiscal year ended Sept. 30.

Disney, which owns nearly 40% of the French company, reinstated the fees and royalties this year as planned, after a five-year waiver that was part of a financial restructuring of the troubled Paris park in 1994. This year’s fees, totaling $39.4 million, were accompanied by an increase in leasing and net debt repayments.

Disney, which also has a park in Tokyo, is continuing its international expansion. Monday it announced a deal with the government of Hong Kong to build a park in the former British colony, gaining a foothold in the enormous Chinese market.

Euro Disney said attendance was flat for the year at 12.5 million, although attendance in the fourth quarter was the highest since 1992. Hotel occupancy rose a faint 1.7%, which still constituted a record high. Revenue rose about 2.5% to $966 million.

Future returns

The company said financial results from this point forward will benefit from its renegotiating interest rates and principal repayment terms of existing loans that will translate into significant annual cash-flow savings over the next several years.

This spring, the Adventureland attraction Indiana Jones and the Temple of Peril will reopen after a full renovation. Construction continues on Val d’Europe, with a fall 2000 opening anticipated for the shopping center and a second suburban rail station.

Euro Disney is also in the middle of planning for the launch of Disney Studios, a second park to be constructed on the Disneyland Paris site. As reported, the project will be financed by combination of an equity offering and a loan.

Parent company Disney plans to announce its own quarterly financial results Thursday.

More Biz

  • Discovery CEO David Zaslav Sees 2018

    Discovery CEO David Zaslav Sees 2018 Compensation Soar to $129.4 Million

    Discovery Inc. president-CEO David Zaslav is once again making headlines for an enormous compensation package. Zaslav’s 2018 compensation soared to $129.44 million in 2018, fueled by stock options and grants awarded as the longtime Discovery chief signed a new employment contract last July that takes him through 2023 at the cable programming group. Zaslav received [...]

  • Jonathan Lamy RIAA

    Jonathan Lamy Stepping Down From RIAA

    Jonathan Lamy, the Recording Industry Association of America’s longtime executive VP of communications and marketing, is stepping down from his post after 17 years, he announced today. As he put it in an email to Variety, “I started back in 2002, which means it’s been 17+ years, four different RIAA CEOs, three format changes and [...]

  • Fox Layoffs

    Disney-21st Fox Layoffs: TV Divisions Brace for Deep Cuts

    A second day of layoffs has begun on the Fox lot in the wake of Disney completing its acquisition of 21st Century Fox on Wednesday. Longtime 20th Century Fox Television Distribution president Mark Kaner is among the senior executives who were formally notified with severance details on Friday morning. 21st Century Fox’s international TV sales [...]

  • anthony pellicano

    Hollywood Fixer Anthony Pellicano Released From Federal Prison

    Anthony Pellicano, the Hollywood private eye whose wiretapping case riveted the industry a decade ago, was released from a federal prison on Friday, a prison spokeswoman confirmed. Pellicano was sentenced in 2008 to 15 years, following his conviction on 78 charges of wiretapping, racketeering, conspiracy and wire fraud. He had been in custody since 2003, [...]

  • This image taken from the Twitter

    HBO’s Reaction to Trump’s ‘Game of Thrones’ Campaign

    Everyone wants a piece of the “Game of Thrones” lemon cake. From Bud Light to Red Bull the world of Westeros is open to a lot of brand partnerships, unless you’re using that iconic typeface to push a political agenda. In November of 2018 President Donald Trump unveiled a “Thrones” inspired poster with the words [...]

  • Leaving Neverland HBO

    'Leaving Neverland' Lawsuit Proves to Be a Judicial Hot Potato

    The Michael Jackson estate sued HBO last month for airing the documentary “Leaving Neverland,” which accuses the late King of Pop of serial child sexual abuse. Since then, the case has had a difficult time finding a judge to handle it. Three federal judges have recused themselves in the last week, citing potential financial conflicts [...]

  • Members of the public mourn at

    Guy Oseary’s New Zealand Fundraiser Nears $150,000, Continues Raising Money

    In the wake of the horrific shootings at New Zealand mosques last week that killed some 49 people, Maverick chief Guy Oseary launched a GoFundMe campaign to “support those affected by this tragedy at this very difficult time,” and began it with an $18,000 donation. Boosted by donations from many celebrities — including Amy Schumer, [...]

More From Our Brands

Access exclusive content