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[Javey74]

Does anyone know what the financial status of DLRP is.  Like how much are they still in debt.   When are they expected to break even.  I've looked at (EuroDisney Financial Reports), but as you know these are never in laymans terms, in some areas you need a degree in finance and terminology to understand them.

Has anyone got a profit scale over the 15 years, from when they were in trouble, upto now where there seems to be a more stable and confident looking future.

 :?:  :?:  :?:

[Nicholas-c]

i think they are still in debt (not sure how much) but they are getting out of it fast now and then once they are out of debt they will be seriously loaded and i except new rides will be coming then

[Anthony]

i think they are still in debt (not sure how much) but they are getting out of it fast now and then once they are out of debt they will be seriously loaded and i except new rides will be coming then

Errm... not quite.

They haven't turned a profit for quite a while, that's their major aim now. You're right that they seem more stable and confident, definitely. Karl Holz has done a lot. The financial restructuring in 2004/05 by André Lacroix managed to save the company and provide the €240m for investment. I'm not sure if they've even started truly "paying off" the debt, but my mind with zero financial knowledge doubts it...  They're on the right path but they've got a long, long way to go.

The general figure always thrown around is €2bn debt, not sure how accurate that actually is.

[Javey74]

Let's say it was 2 billion, it's a wonder the Saudi Prince that already has money invested in DLRP doesn't just pay it, and write the debt off.  

It would be very kind of him, I know, a very nice present to DLRP, after all with the price of oil these days, the're multi billionaires, never mind millionaires.  What's 2 billion from 150-200 billion....(Spare Change)  

That's what gets me, you hear about banking, or commercial organisations getting others to wipe off their debts and rebuild with the profits made from then on in.  :?

If you had billions and you had the chance to bail a bank out or DLRP and the wonderful magic it offers, who would you pick.  I know my answer... :wink:

[Nicholas-c]

i think they are still in debt (not sure how much) but they are getting out of it fast now and then once they are out of debt they will be seriously loaded and i except new rides will be coming then

Errm... not quite.

They haven't turned a profit for quite a while, that's their major aim now. You're right that they seem more stable and confident, definitely. Karl Holz has done a lot. The financial restructuring in 2004/05 by André Lacroix managed to save the company and provide the €240m for investment. I'm not sure if they've even started truly "paying off" the debt, but my mind with zero financial knowledge doubts it...  They're on the right path but they've got a long, long way to go.

The general figure always thrown around is €2bn debt, not sure how accurate that actually is.

oh, im sorry my mistake (i guess i shouldn't believe everything i read on the net...)

[Atlantica]

Oh my gosh, Ihad no idea they were still in debt! Its been years though, surely Disney are nearly there to breaking even ?

[Kristof]

surely Disney are nearly there to breaking even ?

Far from!

[Atlantica]

Oh my gosh, really? The park really must have been a failure in the beginning for the debt to go on this long  

[Alpop]

I read a lot in the reports and thought about this carefully before I bought the shares. Now this is how I read it.

They have a financial agreement with a special interest rate for the next 4 and a bit years. If they don't pay the debt off by then the interest will amount up v. quickly.

I think I read that they had paid a good piece (possibly 1/5th) of this off with in the first year. Which could suggest that they pay a fifth off for 5 years and job done.

But as you will find out it isn't easy reading the reports and had the new investments been included or not. Will the next report add on a 1/5th of the debt and look worse?

The next financial statement should be next month I think!

[Javey74]

If this is the case, has anyone got the net profit, just eliminating the debt owed for now.  

In other words how much did DLRP make in the last fiscal year after deductions i.e. (overheads costs etc).  Then it depends how much of that went into repaying the debt.  I'd be suprised if it was all of it.  You will always need money to invest into the following year.

 :?:  :?:  :?:

[Anthony]

It's so incredibly complicated it's probably above us working it out! Alpop, you seem to have good research there.  The debt must certainly be costing them each financial year. Infact, I read somewhere a while ago if it weren't for the debt they'd be making great profits right now, it's not that the resort isn't successful, but building too many hotels from the start really crippled the whole project, they've never recovered.

Hopefully next month's annual report will give a better insight into where they go from here.

[ford prefect]

the corporate structure is so complicated, with at least 2 hedge funds owning the portions of the debt, as well as the primary share holders of Prince Al Waheed (12%) and the Walt Disney Company all wanting income.

If the hedge funds called in the debt then Eurodisney SCA would be bankrupt.

I am fairly certain that this would not result in the closure of the resort, since there will be contingency plans!

Back of the fag packet calculations are fairly meaningless since there are so many greedy fingers in the pie

[Alpop]

I've had a flick through a book, but couldn't find the facts relating to my post, so the theory is here only. It was from "The Keys to The Kingdom" the rise of Michael Eisner.

In the early days of DLRP there was a big debt problem. SO Eisner re shuffled the debt around to save some money.
Because the resort was built with very open arms on the french side. The government were happy and Disney was very successful. Eisner sort investors and borrowed money from The French Banks. As a big name they seemed to get what they wanted (Millions of Francs/euros).
Now when this debt sprialled out of controll and the Disney corp wasn't going to just hand over a load of cash to bail them out, Even though eisners bonus for the year could have really helped out this problem.
He went to the banks and said "can we renegotiate this deal and loose a million Francs / Euros of the balance or we'll wrap it up as a bad cause".

Obviously the banks didn't want to lose all their investment by seeing it go Bankrupt, so the agreed to knock off $1,000,000 off the bill. I believe several funding parties were approached with this sort of negotiation.

So...... I feel that the ties with the people who DLRP owes money to is very strong. This is why we have seen this "discounted" finance deal for the next 5 years. Whose to say it won't continue if DLRP doesn't make that dead line.

*** the figures mentioned are guessed at as it's been about 6 months since I read the book, it could have been millions or tens of millions!

[Anthony]

He went to the banks and said "can we renegotiate this deal and loose a million Francs / Euros of the balance or we'll wrap it up as a bad cause".

Obviously the banks didn't want to lose all their investment by seeing it go Bankrupt, so the agreed to knock off $1,000,000 off the bill. I believe several funding parties were approached with this sort of negotiation.

This is interesting, I never considered how all the banks and investors would lose out if they went bankrupt and had to start over. Definitely gives a lot more strength to how well Euro Disney SCA are being supported.

Karl Holz himself has said in a statement that the road to full recovery is still very long ahead, which is impressive for a CEO to say. It seems he's not just after turning a quick profit, with all this talk of investing in the "Disney experence" they obviously want a permanent fix.

Is it wrong for me to be looking forward to a financial report? :lol:

[Alpop]

Is it wrong for me to be looking forward to a financial report? :lol:

Personally I can't wait, fingers crossed that the figures are staying positive.