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[Rocketeer]

Euro Disney S.C.A. has published its Full Year Results for Fiscal Year 2016, revealing attendance at the Disneyland Paris theme parks has dropped by 10% and group revenues by 7% in the year ended 30th September 2016.

Key Figures

    Park Attendance down 10% to 13.4 million (from 14.8m)

    Revenues down 7% to €1,278 million (from €1,373m)

    Costs and Expenses up 5% to €1,520 million (from €1,454m)

    Net Loss of €858 million due to €565m charge on "impaired" assets

    Hotel Occupancy down to 77% (from 79%)

    €193 million spent on investments including guest experience, 25th Anniversary preparations, Villages Nature (up from €134m)

    The Walt Disney Company will waive 2 years of royalty and management fees, beginning with €21m owed for Fourth Quarter of 2016

-DLRPToday
http://www.dlptoday.com/2016/11/11/2016-annual-results-disneyland-paris-park-attendance-down-10-revenues-fall-7/

[norhel]

Isn't so that DLP has had a loss all of it's operating years, except for a couple of years, or am I remembering wrong?
Do you think that TWDC may do some more than waive the fees regarding to make the books go in plus, or are the company in the right directions? Just thinking that if the attendance has gone down now, and might continue down, it won't look promising.
What are people's thoughts on that?

[polar vixen]

I think attendance would have been down partially due to tge huge number if ride closures.  also a lot if people are aware of next year being tghe 25 th abd have held ioff for that

[Rocketeer]

I don't think the ride closures is the main reason for the attendance drop - nor the prospect of the 25th. In fact its probably only accounts for a small percentage.

norhel - I think you are right, they've only had a couple of years in the black - if memory serves it was just before WDS opened.

In terms of what to do, well if you look further afield, you'll see that HKDL has had a massive expansion (in part to off set the impact of SDL). What Paris needs its something similar, at the very least. Yes it costs money, but its not as if TWDC is not flush with cash. There needs to be a major expansion of the Studios - at the same time, not forgetting Parc Disneyland, with perhaps a couple of D tickets or one E.

Easier said than done though. I just don't understand the companies position when it comes to Paris - especailly these days when they more or less have control of ED.

[norhel]

I don't think the ride closures is the main reason for the attendance drop - nor the prospect of the 25th. In fact its probably only accounts for a small percentage.

norhel - I think you are right, they've only had a couple of years in the black - if memory serves it was just before WDS opened.

In terms of what to do, well if you look further afield, you'll see that HKDL has had a massive expansion (in part to off set the impact of SDL). What Paris needs its something similar, at the very least. Yes it costs money, but its not as if TWDC is not flush with cash. There needs to be a major expansion of the Studios - at the same time, not forgetting Parc Disneyland, with perhaps a couple of D tickets or one E.

Easier said than done though. I just don't understand the companies position when it comes to Paris - especailly these days when they more or less have control of ED.

Good points. In one way, the problem for TWDC can be that since they don't fully own DLP, I suspect that that can make it worse for them to do to much. Since it's several owners to go through. But that's just my thoughts regarding building new attractions etc.

[Zee79]

Could the figures be down because of the atrocities that have happened this year? It's not put me off but I know quite a few people who haven't went because if them & told me I was mad.

[Rocketeer]

Could the figures be down because of the atrocities that have happened this year? It's not put me off but I know quite a few people who haven't went because if them & told me I was mad.

There's a very good chance that's it. Plus you then factor in the other issues mentioned earlier (refurbs etc).

Good points. In one way, the problem for TWDC can be that since they don't fully own DLP, I suspect that that can make it worse for them to do to much. Since it's several owners to go through. But that's just my thoughts regarding building new attractions etc.

But don't they own something like 70%+ of ED? To me that's no barrier to getting things done. The remaining shareholders combined could not block them from making any big decision.

[norhel]

Yeah, TWDC do own 70% or something of DLP.
To be honest, I'm not sure about the rule of what they can do when they don't fully own versus fully own.

[A&S&O]

If TWDC inject more cash to cover these huge losses, won't that increase their holding in DLP?

Will we then go through the same process as the last time TWDC pumped money into DLP - with existing shareholders being offered shares at a preferential rate in order to keep their ratio DLP?

At the time, it was rumoured that TWDC hoped that existing shareholders wouldn't take up the offer, enabling TWDC to increase their percentage holding in DLP. Unfortunately for them, people did take up the offer.

Being very cynical here, but could this latest huge loss have been engineered, so that TWDC could try again to take over DLP?

[norhel]

If TWDC inject more cash to cover these huge losses, won't that increase their holding in DLP?

Most probably yes. At least if it's issued through shares.

[Rocketeer]

Well at this point, I'm not fussed as long as it gets something done.