Home

[Josh]

There's been a lot of rumours lately of a DCA-style revamp of the Walt Disney Studios Park, following the news that Toy Story Mania is being considered as the park's next ride, following Ratatouille.

Here's a summary of the rumours from a member of MiceChat:

A placemaking is rumored but not official for the moment. Toon Studios is rumored to become a kind of Pixar World, Backlot is rumored to become Marvel Studios, Production Courtyard is rumored to become Hollywood Studio. The whole park is rumored to be renamed "Disney Hollywood Adventure". This is not a joke, those rumors are serious, but are absolutely not official at present.

[ford prefect]

At present EuroDisney barely have sufficient funds to meet their current debt obligations.  I cannot imagine the funding for such a project would be available for at least 5 years.

[dagobert]

ED SCA has 250 mio Euros to spend and I guess that amount will be used for Rat and another new ride, which could be TSMM.

As for the name change, the park will not be better just because it gets a new name. Although I enjoy spending time at WDSP and I also think the park improved in recent years, it needs a huge makeover to be a wonderful Disney park. But I can't see how that should happen with the huge debt ED SCA is facing.

[|Q|]

At present EuroDisney barely have sufficient funds to meet their current debt obligations.  I cannot imagine the funding for such a project would be available for at least 5 years.

 But there are a lot of rumors in the wild these days, that says that money is coming this way. On DCP all the "insiders" are pretty excited... but i think most will depend on how well the DCA extreme makeover will hit on park crowds.

 Q

[dagobert]

At present EuroDisney barely have sufficient funds to meet their current debt obligations.  I cannot imagine the funding for such a project would be available for at least 5 years.

 But there are a lot of rumors in the wild these days, that says that money is coming this way. On DCP all the "insiders" are pretty excited... but i think most will depend on how well the DCA extreme makeover will hit on park crowds.

 Q

I'm not sure if DCA 2.0 will have such a big impact on DLR. Most of the visitors are already Annual Pass holders. The park will get more visitors, no doubt, but the overall attendance will stay the same.

I also think DLRP and DLR can't be compared. DLRP is a combination of WDW and DLR since it attracts tourists like WDW and locals like DLR.

We can only hope that these rumours are true, but I don't get my hopes too high, at the end of the day it's still the debt driven DLRP and not the money making machine DLR.

[ford prefect]

At present EuroDisney barely have sufficient funds to meet their current debt obligations.  I cannot imagine the funding for such a project would be available for at least 5 years.

 But there are a lot of rumors in the wild these days, that says that money is coming this way. On DCP all the "insiders" are pretty excited... but i think most will depend on how well the DCA extreme makeover will hit on park crowds.

 Q

I'm not sure if DCA 2.0 will have such a big impact on DLR. Most of the visitors are already Annual Pass holders. The park will get more visitors, no doubt, but the overall attendance will stay the same.

I also think DLRP and DLR can't be compared. DLRP is a combination of WDW and DLR since it attracts tourists like WDW and locals like DLR.

We can only hope that these rumours are true, but I don't get my hopes too high, at the end of the day it's still the debt driven DLRP and not the money making machine DLR.

ED SCA has 250 mio Euros to spend and I guess that amount will be used for Rat and another new ride, which could be TSMM.

As for the name change, the park will not be better just because it gets a new name. Although I enjoy spending time at WDSP and I also think the park improved in recent years, it needs a huge makeover to be a wonderful Disney park. But I can't see how that should happen with the huge debt ED SCA is facing.

Ratatouille and Dreams have swallowed almost all of that €250million.

The WDC will want to see some returns before committing more money.

[dagobert]

Ratatouille and Dreams have swallowed almost all of that €250million.

The WDC will want to see some returns before committing more money.

I already thought that the whole money was used for maintenance, Rat and Dreams. I guess we just have to wait and see what the future holds for DLP.

[DisneyFanB]

From what I read Dreams had a €10 million cost and Ratatouille was rumored to be €150-200 million.
Dreams was being planned/produced for 2 years already, while the €250 budget loan just happend very recently, so safe to assume only the Ratatouille cost is/will be taken out of that.
Maintenance is a different budget anyway and was already spend before the loan happend, which is why for example the outside exterior of the HTH will only get fixed with next years maintenance budget, so this will also not have effected the €250 million budget.
So I assume afther Ratatouille there is still €50-100 left for a second ride like Toy Story Mania.
And yes there is still alot of debt but this year will be very crucial to see if Dreams combined with a 20th anniversary theme will impact a big increase in attendance and revenue, so they could be turning a healthy profit afther their next planned debt payment, that combined with the debt payment plan actually decreasing in the following years, could open up budget alot sooner then what we where used to from DLP in the past.

[ford prefect]

From what I read Dreams had a €10 million cost and Ratatouille was rumored to be €150-200 million.
Dreams was being planned/produced for 2 years already, while the €250 budget loan just happend very recently, so safe to assume only the Ratatouille cost is/will be taken out of that.
Maintenance is a different budget anyway and was already spend before the loan happend, which is why for example the outside exterior of the HTH will only get fixed with next years maintenance budget, so this will also not have effected the €250 million budget.
So I assume afther Ratatouille there is still €50-100 left for a second ride like Toy Story Mania.
And yes there is still alot of debt but this year will be very crucial to see if Dreams combined with a 20th anniversary theme will impact a big increase in attendance and revenue, so they could be turning a healthy profit afther their next planned debt payment, that combined with the debt payment plan actually decreasing in the following years, could open up budget alot sooner then what we where used to from DLP in the past.

Toy story mania cost will equal, if not exceed ratatouille.  the 250million includes the already exisiting 100 million line of credit.  The cost for Dreams and maintenance and general operation came out of the original costing with the subsequent €150m being earmarked for Ratatouille.

EuroDisney SCA will not turn a profit for some time.  Periodically it shows an operating profit, for example when it sold the Val d'Europ property.

http://corporate.disneylandparis.com/CO ... elease.pdf

Gives the current spin on the last quarter turnover

http://2011annualreport.disneylandparis ... sults.html

Gives a quick look at the state of play

The resort made an operating profit of 11.40 million, a third of what it did in 2010, however this was partially off set by a large tax rebate received in 2010.

Don't get me wrong here guys, I love DLP and am desperate for it to succeed, however the finances are really against us here!

[DopeyDad]

Actually I think the second link indicates that the maintenance round recently completed is included as costs in last financial years operating costs, so would not have come out of the more recently announced line of credut.

Kevin

[ford prefect]

Actually I think the second link indicates that the maintenance round recently completed is included as costs in last financial years operating costs, so would not have come out of the more recently announced line of credut.

Kevin

That's correct.  The recent credit was for Ratatouille.

[DisneyFanB]

When they announced the new credit of €150 million , it was said the other remaining previous credit of €100 million was still unused and available to be used untill 2014 (could be 2016, not sure about the year anymore).
So the €250 was still there in full the day the news broke about a new €150 creditline.
Yes rigthnow there is only an operating profit, but that is based on a "normal" year and turns into a loss once the debt payment happens.
But now with Dreams and the 20th anniversary year will be a crucial year to see if it brings in alot higher attendance in both parks , but more importantly hotels, therefor more revenue that could turn the operating profit higher that it still stays a profit even afther the yearly debt payment happens.
Which over the next few years could happen since the yearly payoff becomes less in upcoming years, €153 million in 2012, €133.5 million in 2013, €37.4 in 2014 , €96.9 million in 2015 , €16.2 in 2016.
Look at 2014 , "only" €37.4 needs to be paid back, if Ratatouille opens that year and holds the assumed higher attendance the parks will get now with the 20th anniversary theme, it could leave alot of profit at the end of that fiscal year.
If that money is then used for a new ride to be build and open in 2016, a year with another low debt payoff, they could try to repeat that effect then with higher attendance/revenue with low debt payoff and turn it's fortunes around and start opening up new rides alot faster compared to what we where used to from DLP in the past.

[DopeyDad]

Absolutely, and well put. Servicing the debt to manageable levels that allow reinvestment back in time for post 20th times, to hopefully keep momentum going with new attractions and maintaining increasing attendance. Who knows, it might just fly
The 20th, with a now refurbished park and Dreams is certainly a good start. If they can get better entertainment, and the Hotel standard improved now they can certainly be in a position for significant attraction investment in maybe 3-4 years perhaps.
Ever the optimist I know, but that time frame could also coincide with an improving economy and a leaner DLP actually benefiting from the lessons its had to learn during hard times.

[Josh]

The WDC will want to see some returns before committing more money.

I doubt it. They know that they need to act ASAP, hence the fact that they've already planned for the park's future. Sitting and waiting to see what the money does will only hurt the company.

[pussinboots]

All I want to say at this point is that any park name ending in "Adventure" strikes me as inane and stupid. The problem with the Studios is not the name... It's everything else.