MARNE-LA-VALLEE, France, October 21 Euro-Disney-SCA
MARNE-LA-VALLEE, France, October 21 /PRNewswire-FirstCall/ --
- Net Profit of EUR 2 Million for the Group in Fiscal Year 2008 - Third
Consecutive Year of GROWTh in Revenues
- EBITDA(1) Increased 21% to EUR 249 Million
- Cash and Cash Equivalents at EUR 374 Million
- Records in Attendance of 15.3 Million and Hotel Occupancy of 91%
Euro Disney S.C.A. (the "Company"), parent company of Euro Disney
Associes S.C.A. ("EDA"), operator of Disneyland(R) Resort Paris, reported
today the results for its consolidated group (the "Group"), for the fiscal
year 2008 which ended September 30, 2008 (the "Fiscal Year").
Key Financial Highlights Fiscal Year
(EUR in millions) 2008 2007 2006
Revenues 1,330.5 1,220.3 1,087.7
Costs and expenses (1,240.0)(1,169.5)(1,090.1)
Operating margin 90.5 50.8(2.4)
Plus: Depreciation and amortization 159.0154.9150.3
EBITDA (1) 249.5205.7147.9
EBITDA as a percentage of revenues 18.8%16.9%13.6%
Net profit / (loss)1.7 (41.6) (88.6)
Attributable to equity holders of
the parent (2.8) (38.4) (73.1)
Attributable to minority interests 4.5(3.2) (15.5)
Cash flow generated by operating
activities 178.2191.1151.9
Cash flow used in investing
activities (72.3) (126.9) (131.2)
Free cash flow (1) 105.9 64.2 20.7
Cash and cash equivalents, end of
period 374.3330.0266.4
Key Operating Statistics (2)
Theme parks attendance (in millions) 15.3 14.5 12.8
Average spending per guest (in EUR) 46.3 45.0 44.8
Hotel occupancy rate 90.9%89.3% 83.5%
Average spending per room (in EUR) 211.4197.9 179.5
Commenting on the results, Philippe Gas, Chief Executive Officer of Euro
Disney S.A.S, said:
"We reached an important milestone in 2008 by achieving profitability.
Our revenues, theme parks attendance and hotel occupancy contributed to our
performance which is noteworthy given the economic environment.
The popularity of Disneyland Resort Paris, Europe's number one tourist
destination, continued to grow as guests discovered our new attractions
including the iconic Twilight Zone Tower of TerrorTM, Cars Race Rally,
Crush's Coaster, the interactive experience Stitch Live! and the High School
Musical shows inspired by the popular Disney franchise.
We are convinced that our development strategy, together with the
commitment of our cast members and the strength of the Disney brand, position
us well for long-term growth."
(1) EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) and Free cash flow (cash generated by operating activities less
cash used in investing activities) are not measures of financial performance
defined under IFRS, and should not be viewed as substitutes for operating
margin, net profit / (loss) or operating cash flows in evaluating the Group's
financial results. However, management believes that EBITDA and Free cash
flow are useful tools for evaluating the Group's performance.
(2) Please refer to Exhibit 7 for the definition of each key operating
statistic.
Revenues by Operating Segment
Fiscal Year Variance
(EUR in millions, audited) 2008 2007 Amount %
Theme parks 715.8 658.657.2 8.7%
Hotels and Disney(R) Village 515.6 483.032.6 6.7%
Other 58.1 59.4 (1.3) (2.2)%
Resort operating segment1,289.51,201.088.5 7.4%
Real estate development operating
segment41.0 19.321.7 112.4%
Total revenues 1,330.51,220.3 110.2 9.0%
Resort operating segment revenues increased by more than 7% to EUR
1,289.5 million from EUR 1,201.0 million in the prior-year period.
Theme parks revenues increased 9% to EUR 715.8 million from EUR 658.6
million in the prior-year period, primarily reflecting a 0.8 million increase
in attendance to 15.3 million guests and a 3% increase in average spending
per guest to EUR 46.3. The increase in theme parks attendance was driven by
higher guest visitation from France, the Netherlands and United Kingdom. The
increase in average spending per guest reflects growth from admissions and
food and beverage.
Hotels and Disney Village revenues increased 7% to EUR 515.6 million from
EUR 483.0 million in the prior-year period, reflecting a 7% increase in
average spending per room to EUR 211.4 and a 1.6 percentage point increase in
hotel occupancy from 89.3% to 90.9%. The increase in average spending per
room principally reflects increases in daily room rates and fewer promotional
offers. The increase in hotel occupancy resulted from an incremental 37,000
room nights compared to the prior-year period, which can be attributed to
more leisure guests from the United Kingdom and Spain, partially offset by
less rooms sold to leisure and business groups as a result of lower
availability.
Other revenues, which include participant sponsorships, transportation
and other travel services sold to guests, decreased EUR 1.3 million to EUR
58.1 million.
Real estate development operating segment revenues increased EUR 21.7
million from the prior-year period to EUR 41.0 million, principally resulting
from EUR 12.5 million of revenue related to the sale of a property in Val
d'Europe which had been subject to a long term ground lease. Although the
number of other remaining transactions was the same as in the prior-year
period, projects this year were more significant.
Costs and Expenses
Fiscal Year Variance
(EUR in millions,
audited) 2008 2007 Amount %
Direct operating costs
(1) 996.1 940.156.0 6.0%
Marketing and sales
expenses125.3 121.9 3.4 2.8%
General and
administrative expenses 118.6 107.511.1 10.3%
Costs and expenses1,240.01,169.570.5 6.0%
(1) Direct operating costs primarily include wages and benefits for
employees in operational roles, depreciation and amortization related to
operations, cost of sales, royalties and management fees. For the Fiscal Year
and the corresponding prior-year period, royalties and management fees
amounted to EUR 74.7 million and EUR 69.1 million, respectively.
Direct operating costs for the Fiscal Year grew 6% compared to the
prior-year period, less than the 9% growth rate in the Group's revenues. This
increase was primarily driven by labor and other direct costs to support the
increased Resort and Real Estate activities, as well as labor rate inflation
and depreciation and amortization related to new attractions. Partially
offsetting this increase was EUR 8.1 million refund (which is net of legal
fees) received for certain tax expenses made in calendar year 2003 and 2004
related to the hotel operations. The Group recorded this amount as a
reduction of direct operating costs. Direct operating costs during the
prior-year period benefited from a EUR 4.3 million refund of certain direct
operating costs that were incurred in earlier periods.
Marketing and sales expenses increased EUR 3.4 million compared to the
prior-year period mainly due to increased media spending associated with the
increased Resort activities. These expenses remained stable at 10% of the
Resort revenues during the Fiscal Year.
General and administrative expenses increased EUR 11.1 million compared
to the prior-year period. This increase was mainly driven by higher labor and
professional services costs.
Net Financial Charges
Fiscal YearVariance
(EUR in millions, audited) 20082007 Amount %
Financial income 17.010.5 6.5 61.9%
Financial expense (105.4) (102.7)(2.7) 2.6%
Net financial charges (88.4) (92.2) 3.8 (4.1)%
Net financial charges decreased EUR 3.8 million compared to the
prior-year period.
Financial income increased EUR 6.5 million compared to the prior-year
period. This increase is primarily due to higher average cash and cash
equivalents and higher interest rates as compared to the prior-year period.
Financial expenses increased EUR 2.7 million compared to the prior-year
period, driven by higher interest rates compared to the prior-year period.
Net Profit Driven by Record Revenues
For the Fiscal Year, net profit of the Group amounted to EUR 1.7 million
compared to a net loss of EUR 41.6 million for the prior-year period. The net
profit of the Group was driven by the increased revenues and improved
operating margin compared to the prior-year period.
Net profit attributable to minority interests amounted to EUR 4.5
million. Of the amount attributable to minority interests, EUR 4.7 million
was income earned by the financing company that owns the Disneyland(R) Park.
Net result attributable to equity holders of the Company, resulting from the
difference between the net profit of the Group and the part attributable to
minority interests, was a loss of EUR 2.8 million.
Net Cash Increase of EUR 44 Million
Cash and cash equivalents as of September 30, 2008 were EUR 374.3
million, up EUR 44.3 million from the prior fiscal year end. This increase
resulted from:
Fiscal Year Variance
(EUR in millions) 2008 2007
Cash flow generated by operating activities178.2 191.1(12.9)
Cash flow used in investing activities(72.3)(126.9) 54.6
Free cash flow 105.9 64.2 41.7
Cash flow used in financing activities(61.6) (0.6)(61.0)
Change in cash and cash equivalents 44.3 63.6(19.3)
Cash and cash equivalents, beginning of
period 330.0 266.4 63.6
Cash and cash equivalents, end of period 374.3 330.0 44.3
Free cash flow for the Fiscal Year increased EUR 41.7 million to EUR
105.9 million from EUR 64.2 million in the prior-year period.
Cash generated by operating activities for the Fiscal Year totaled EUR
178.2 million compared to EUR 191.1 million generated in the prior-year
period. Additional cash generated from the improved operating performance
during the Fiscal Year was offset by increased working capital requirements.
Cash used in investing activities for the Fiscal Year totaled EUR 72.3
million compared to EUR 126.9 million used in the prior-year period. This
decrease reflects lower expenditures made in the Fiscal Year for projects
related to the multi-year investment program, for which EUR 227.5 million of
the EUR 240.0 million has been incurred through September 30, 2008.
Cash used in financing activities for the Fiscal Year totaled EUR 61.6
million compared to EUR 0.6 million used in the prior-year period. This
increase primarily reflects the scheduled repayment of bank borrowings by the
Group during the Fiscal Year, while there were no similar scheduled
repayments in the prior-year period.
Update on recent and upcoming events
As the "Celebration Continues...Big Time" in 2008, Disneyland(R) Resort
Paris welcomed on August 12th its 200 millionth guest since the opening in
1992. This guest belonged to a family from Provence that was visiting the
Resort for the 5th time.
Philippe Gas stepped into his role as CEO of Euro Disney S.A.S., the
Gerant of the Company and EDA on September 1, 2008, replacing Karl Holz.
Philippe Gas was a member of the opening team in 1992 and is a 17-year Disney
veteran.
From October 4 through November 2, 2008, Disneyland(R) Park transforms
itself, with the help of Mickey and the Disney villains, for the annual
Halloween celebration. Then on November 8, 2008 through January 6, 2009, the
Resort takes on its holiday decorations, music and special entertainment for
the very popular Christmas season.
In line with our ongoing development strategy, in the Walt Disney
Studios(R) Park, Playhouse Disney - Live on Stage!, will provide the
opportunity for our younger guests to join friends from the Disney Channel in
an immersive entertainment experience, for the launch of the summer season.
The park will also debut Disney's Stars 'n Cars, a new Hollywood-style show
starring characters from Toy Story, Snow White, Monsters Inc., Mulan, The
Little Mermaid, and more.
The Group operates Disneyland(R) Resort Paris which includes:
Disneyland(R) Park, Walt Disney Studios(R) Park, seven themed hotels with
approximately 5,800 rooms (excluding approximately 2,400 additional
third-party rooms located on the site), two convention centers, Disney(R)
Village, a dining, shopping and entertainment centre, and a 27-hole golf
course. The Group's operating activities also include the development of the
2,000-hectare site, half of which is yet developed. Euro Disney S.C.A.'s
shares are listed and traded on Euronext Paris.
Attachments: Exhibit 1 - Consolidated Statements of Income
Exhibit 2 - Consolidated Segment Statements of Income
Exhibit 3 - Consolidated Balance Sheets
Exhibit 4 - Consolidated Statements of Cash Flows
Exhibit 5 - Reconciliation of Shareholders' Equity and Minority Interests
Exhibit 6 - Reconciliation of Borrowings
Exhibit 7 - Definition of key operating statistics
EXHIBIT 1
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
CONSOLIDATED STATEMENTS OF INCOME
Fiscal YearVariance
(EUR in millions, audited)2008 2007 Amount %
Revenues 1,330.5 1,220.3 110.2 9.0%
Costs and expenses (1,240.0)(1,169.5) (70.5) 6.0%
Operating margin 90.5 50.839.7 78.1%
Net financial charges (88.4) (92.2) 3.8(4.1)%
Loss from equity investments (0.4)(0.2) (0.2)100.0%
Profit / (loss) before taxes 1.7 (41.6)43.3 n/m
Income tax benefit (expense) -- - n/a
Net profit / (loss)1.7 (41.6)43.3 n/m
Net profit / (loss)
attributable to:
Equity holders of the parent (2.8) (38.4)35.6 n/m
Minority interests 4.5(3.2) 7.7 n/m
n/m: not meaningful.
n/a: not applicable.
EXHIBIT 2
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
CONSOLIDATED SEGMENT STATEMENTS OF INCOME
Real estate
Resort development
operatingoperating Fiscal
(EUR in millions, audited)segment segment Year 2008
Revenues 1,289.5 41.01,330.5
Costs and expenses (1,213.6) (26.4) (1,240.0)
Operating margin 75.9 14.6 90.5
Net financial charges / income (88.6) 0.2 (88.4)
Loss from equity investments(0.2)(0.2) (0.4)
Profit / (Loss) before taxes (12.9) 14.61.7
Income tax benefit (expense)-- -
Net profit / loss) (12.9) 14.61.7
EXHIBIT 3
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
Consolidated Balance Sheets
September 30,
(EUR in millions, audited) 2008 2007
Non-current assets
Property, plant and equipment 2,128.2 2,219.6
Investment property39.3 43.4
Intangible assets 53.0 60.4
Financial assets2.1 7.4
Other 78.2 68.1
2,300.8 2,398.9
Current assets
Inventories37.4 32.4
Trade and other receivables 146.1 133.3
Cash and cash equivalents 374.3 330.0
Other 17.7 18.1
575.5 513.8
Total assets2,876.3 2,912.7
Shareholders' equity
Share capital 39.0 39.0
Share premium 1,627.3 1,627.5
Accumulated deficit (1,423.0) (1,420.2)
Other 6.4 6.3
Total shareholders' equity249.7 252.6
Minority interests108.1 103.6
Total equity 357.8 356.2
Non-current liabilities
Provisions 18.3 19.3
Borrowings 1,892.8 1,939.9
Deferred revenues 31.4 37.6
Other 60.4 56.5
2,002.9 2,053.3
Current liabilities
Trade and other payables 341.4 357.2
Borrowings 86.2 60.8
Deferred revenues 88.0 85.2
515.6 503.2
Total liabilities 2,518.5 2,556.5
Total equity and liabilities2,876.3 2,912.7
EXHIBIT 4
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
CONSOLIDATED STATEMENTS OF Cash Flows
Fiscal Year
(EUR in millions, audited)2008 2007
Net profit / (loss)1.7 (41.6)
Items not requiring cash outlays:
- Depreciation and amortization 159.0 154.9
- Other5.0 16.5
Net changes in working capital account balances 12.5 61.3
Cash flow generated by operating activities 178.2 191.1
Capital expenditures for tangible and intangible assets (72.3)(126.9)
Cash flow used in investing activities (72.3)(126.9)
Net sales / (purchases) of treasury shares (0.8) -
Repayments of borrowings(60.8) (0.6)
Cash flow used in financing activities (61.6) (0.6)
Change in cash and cash equivalents 44.3 63.6
Cash and cash equivalents, beginning of period 330.0 266.4
Cash and cash equivalents, end of period 374.3 330.0
SUPPLEMENTAL CASH FLOW INFORMATION
Fiscal Year
(EUR in millions, audited) 2008 2007
Supplemental cash flow information:
Interest paid 93.3 67.7
Non-cash financing and investing transactions:
Deferral into borrowings of accrued interest under TWDC
and CDC subordinated loans 10.8 28.0
Deferral into borrowings of royalties and management fees 25.0 25.0
EXHIBIT 5
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
Reconciliation of Shareholders' Equity and minority interests
Net profit /
(EUR in millions, September (loss) for September 30,
audited)30, 2007 Fiscal Year 2008 Other2008
Shareholders'
equity
Share capital 39.0 - - 39.0
Share premium1,627.5 - (0.2)1,627.3
Accumulated
deficit(1,420.2) (2.8) - (1,423.0)
Other6.3 - 0.16.4
Total
shareholders'
equity 252.6 (2.8) (0.1) 249.7
Minority interests 103.6 4.5 - 108.1
Total equity 356.2 1.7 (0.1) 357.8
EXHIBIT 6
RECONCILIATION OF BORROWINGS
Fiscal Year 2008
September
(EUR in millions, audited)30, 2007 Increase Decrease
CDC senior loans 241.9 --
CDC subordinated loans 760.5 2.2-
Credit Facility - Phase IA 218.7 2.3 (1)-
Credit Facility - Phase IB 107.7 0.9 (1)-
Partner Advances - Phase IA 304.9 --
Partner Advances - Phase IB 92.8 0.1 (1)-
TWDC loans 213.4 33.6 (2)-
Non-current borrowings 1,939.9 39.1-
CDC senior loans 0.6 -(0.6)
CDC subordinated loans 0.7 -(0.7)
Credit Facility - Phase IA48.7 - (48.7)
Credit Facility - Phase IB10.1 - (10.1)
Financial lease0.7 -(0.7)
Current borrowings60.8 - (60.8)
Total borrowings 2,000.7 39.1 (60.8)
RECONCILIATION OF BORROWINGS (cont.)
Fiscal Year 2008
September
(EUR in millions, audited) Transfers (3) 30, 2008
CDC senior loans(1.4) 240.5
CDC subordinated loans (1.5) 761.2
Credit Facility - Phase IA (63.1) 157.9
Credit Facility - Phase IB (20.2) 88.4
Partner Advances - Phase IA - 304.9
Partner Advances - Phase IB - 92.9
TWDC loans - 247.0
Non-current borrowings (86.2)1,892.8
CDC senior loans 1.41.4
CDC subordinated loans1.51.5
Credit Facility - Phase IA 63.1 63.1
Credit Facility - Phase IB 20.2 20.2
Financial lease - -
Current borrowings 86.2 86.2
Total borrowings-1,979.0
(1) Represents the amount of non cash fair value book adjustments booked
into financial charges.
(2) Increase related to the unconditional deferral of EUR 25.0 million of
royalties and management fees of the Fiscal Year and the contractual deferral
of interests on the TWDC loans.
(3) Transfers from non-current borrowings to current borrowings, based on
the contractual maturities.
EXHIBIT 7
EURO DISNEY S.C.A.
Fiscal Year 2008 Results Announcement
DEFINITION of KEY OPERATING STATISTICS
Theme parks attendance 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.
Average spending per guest 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.
Hotel occupancy rate is the average daily rooms sold as a percentage of
total room inventory (total room inventory is approximately 5,800 rooms).
Average spending per room is the average daily room price and spending on
food, beverage and merchandise and other services sold in hotels, excluding
value added tax.
Results Webcast: October 21, 2008 at 11:00 CET
To connect to the webcast: http://corporate.disneylandparis.com
Additional Financial Information can be found on the internet at
http://corporate.disneylandparis.com
Code ISIN: FR0010540740
Code Reuters: EDL.PA
Code Bloomberg: EDL FP
Press Contact
Stephanie Cocquet
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: stephanie.cocquet@disney.com
Investor Relations
Olivier Lambert
Tel: +331-64-74-58-55
Fax: +331-64-74-56-36
e-mail: olivier.lambert@disney.com
Corporate Communication
Jeff Archambault
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: jeff.archambault@disney.com
SOURCE Euro Disney S.C.A.
