Euro Disney SCA 2011 Financial Reports

[ford prefect]

Better results than I expected!

http://corporate.disneylandparis.com/CO ... r-2011.pdf

[dagobert]

• Total Revenues up 8%
• Resort Revenues increased by 6%, reflecting higher guest spending and volumes

(Marne-la-Vallée, February 8, 2011) Euro Disney S.C.A. (the "Company"), parent company of Euro Disney Associés S.C.A., operator of Disneyland® Paris, reported today the following revenues for its consolidated group (the "Group") for the first quarter of the fiscal year 2011 which ended December 31, 2010 (the "First Quarter"):

Resort operating segment revenues increased 6% to € 307.1 million from € 290.8 million in the prior-year period.

Theme parks revenues increased 3% to € 169.4 million from € 164.7 million in the prior-year period, resulting from a 2% increase in average spending per guest, combined with a 1% increase in attendance. The increase in average spending per guest was due to higher spending on food and beverage. The increase in attendance was driven by more guests visiting from France and Belgium, partially offset by fewer guests visiting from the United Kingdom and the Netherlands.

Hotels and Disney® Village revenues increased 14% to € 127.6 million from € 112.3 million in the prior-year period due to a 5.6 percentage points increase in hotel occupancy, combined with a 7% increase in average spending per room. The increase in hotel occupancy resulted from 30,000 additional room nights compared with the prior-year period, primarily due to more French guests staying overnight and higher business group activity. The increase in average spending per room resulted from higher spending on food and beverage and an increase in daily room rates.

Other revenues, which primarily include participants sponsorships, transportation and other travel services sold to guests, decreased by € 3.7 million to € 10.1 million from € 13.8 million in the prior-year period.

Real estate development operating segment revenues increased by € 8.5 million to € 9.7 million, compared to € 1.2 million in the prior-year period. This increase is due to four transactions in the First Quarter, while no transaction occurred in the prior-year period.

http://corporate.disneylandparis.com/CO ... r-2011.pdf

Taking the bad weather in account, it doesn't look so bad for DLRP. Since hotel occupancy rated are increasing each year, it's getting more and more important to build a new Disney hotel. Otherwise there is no possibility to earn more money with the hotels.

Even without the real estate development operating segment the first quarter would be very good for ED SCA.

The next quarter will be interesting since it's off season.

[dagobert]

Please merge my topic with ford prefect's thread! Thank you!
I didn't see his one, since we nearly posted it at the same time!

[lil-shawn]

I argee, they are better than expected....

We look forward to launching the Disney Magical Moments Festival this spring, where we will celebrate the role
of Disney magic in creating lasting memories for families and friends at the Resort."

Yeah i believe they will give you the ultimate disney vacation memories, with bad food, expansive merchandise
made out of the cheap oh and i think the list can get longer...  

sorry but i had to make a bad statement out of mr. gas ones...

[Adam]

Considering the snow, it is not bad at all - wonder what it would have been like if the snow had not come?

[dagobert]

Although the numbers aren't that bad, ED SCA still has a long way to go to reach the numbers before the economic crisis.

I really wonder what it needs to boost attendance. I mean it needs more than 20 mio people to earn enough money to be positive and to repay the debts. It's a visious circle. No money means no new investments and no new attractions will not bring as many visitors as needed.

Is it possible that it was the wrong decision to build so many third party hotels. Many people stay in htese hotels and they only spend money on Disney with the tickets, maybe food and merchandise and that's it. If there wouldn't be so many third party hotels to chose a lot of that guests have to stay in disney hotels, which means more revenue. Of course building new hotels on their own, the debts would have risen, but I think from a long term perspective it would have been better for ED SCA.

[CafeFantasia]

In trying to save money, Disneyland Paris is actually losing money. They're being too greedy. Quality is the best business plan. They need to be more generous, by offering higher quality at lower prices to guests.

On recent visits to the parks, I've really been shocked by how expensive the fast food is. They serve you very average to low quality food, and charge you table service restaurant prices for it. If these establishments existed in the real World, not in a tourist trap, they would soon be out of business. As it stands now, I totally understand why people bring their own sandwiches and drinks into the parks. Nobody wants to get ripped off.

If Disney insist on offering a lower quality guest experience than in 1992, they need to lower their prices to match it.

[andrewuk]

I really wonder what it needs to boost attendance.

So do I, I really think they knew that that building WDS was going to be a financial disaster even before September 11th. The only second gates that were ever successful from the start were Epcot and DisneySea and they had HUGE investment.

I am a bit more optimistic after seeing these figures though. Obviously we all want to see more investment but maybe DLP has become established enough that they really can keep 15 million people going every year? Maybe they can then boost attendance further with some big things for the 20th anniversary? (Or is my optimism out of control?)  

I love Ratatouille the film and can't wait to ride the ride, but without the thrill element I wonder if it can have the same effect that Space Mountain and Tower of Terror have had on guest numbers??

[dagobert]

In trying to save money, Disneyland Paris is actually losing money. They're being too greedy. Quality is the best business plan. They need to be more generous, by offering higher quality at lower prices to guests.

On recent visits to the parks, I've really been shocked by how expensive the fast food is. They serve you very average to low quality food, and charge you table service restaurant prices for it. If these establishments existed in the real World, not in a tourist trap, they would soon be out of business. As it stands now, I totally understand why people bring their own sandwiches and drinks into the parks. Nobody wants to get ripped off.

If Disney insist on offering a lower quality guest experience than in 1992, they need to lower their prices to match it.

I don't think that the whole TWDC is interested in establishing former quality. It's not just Paris, even at WDW people are already complaining about the drop in quality. You just have to look at several other Disney forums.

The quality of the fast food has to improve, especially at that prices Disney charges you. A family can't afford a fancy restaurant, like Walts, every day.

Without having more different and unique merchandise, people will not spend more money. Just because Disney is printed on something people will not buy it. And there is a lot more Disney stuff with better quality in local stores. Another reason why people will not spend more. Streamlining everything and selling the same stuff in every single shop around the resort will definately not help to increase the spending.

[pussinboots]

The food is a problem. You need only to look at the vast crowds at McDonald's each night to realize where most people are spending their money. (And sensibly so, if you ask me.) They might buy something at Au Chalet and possibly spurge on a pretzel or a pomme d'amour, but for a substantial meal a huge number of people will opt for McDo. It's also clear that Half Board is now the standard (I would venture to say 95% of diners at hotel restaurants nowadays), although I have no idea whether this means Disney is now making more or less money from all these families.

Perhaps it would also be a good idea to lower the prices of table service restaurants slightly? Walt's, Silver Spur and Blue Lagoon aren't exactly full most of the time. Most people never make it past the menu at the entrance.

And it might just be me, but where are the seas of Disneyland Paris shopping bags you used to see in every crowd? Perhaps the monotony of the merchandise has finally translated into lower sales in the Average Family demographic. And it is monotonous alright. Even the Boardwalk Candy Palace is declining. Where are all the fun retro food products? Where's Mickey's Coffee, the pasta line, the cans of cocoa? The garden products? I won't be surprised if the shelves are stocked with Buzz Lightyear toys next year.

Right now, there's this line of grey kitchenware with a Mickey Mouse outline motif. There's a mug with a ceramic spoon that goes in the handle, oven gloves, an apron... You will bump into it in virtually every shop in the resort. How does this help? At one point, you've either bought the mug or you've decided you don't want it. What good is it to hawk the same thing everywhere?

And then there's the Studios, a park which still makes almost no effort to lure you into spending money at all. Once you've made it past Studio 1, your wallet is safe and sound...

[Tuvok]

The results are good and better then expected, but as said before, DLP has a long road ahead if it wants to be on the same level of revenues like in 2008.

I think the idea to built a second gate (WDS) at THAT time was wrong, primairily because of the amount of money they where allowed to invest in this project, which was way to low from the start and resulted in the cheapest looking Disney park ever built. It increased the dept enormously, but didn't had the positive effect (a lot more visitiors) they were hoping for.
I understand the reason to built WDS at that time: with 2 parks, people need to stay at least 3 days to see everything, but they could've done that with a large expansion of Disneyland Park. We already have the biggest Magic Kingdom-style park and there is a lot of room for expansion. There is room for 6-8 more rides in Disneyland Park (mainly in Frontierland, Adventureland and Fantasyland). That's the same amount of rides WDS had at it's opening, while an actual second gate costs so much more to operate then an expansion of an existing park.

I agree on having more different and unique merchandise and selling them in apropriate places which matches the theme, however, I don't agree on the food prices being too high. For one, it's a themepark, so prices aren't the same as in your local McDonald's or other fast food offering. You're also paying for the theme and location. There are dining options for everyone and for every price. Walt's Restaurant for example is expensive, yes, but it's meant to be an excellent quality table service offering (and it IS excellent, having sat down there several times now). If you can't or won't pay the price they are offering, go to a buffet or counter service restaurant, which offers menu's or food options everybody can pay.

[pussinboots]

I agree on having more different and unique merchandise and selling them in apropriate places which matches the theme, however, I don't agree on the food prices being too high. For one, it's a themepark, so prices aren't the same as in your local McDonald's or other fast food offering. You're also paying for the theme and location. There are dining options for everyone and for every price. Walt's Restaurant for example is expensive, yes, but it's meant to be an excellent quality table service offering (and it IS excellent, having sat down there several times now). If you can't or won't pay the price they are offering, go to a buffet or counter service restaurant, which offers menu's or food options everybody can pay.

Of course you would pay more than at McDonald's, no one would expect otherwise. But you're not getting a good product for your money, and that's not a good business strategy anywhere. That's about the fast food, of course, which really is terrible, and to an extent the buffets.

The buffets, by the way, are not affordable at all, as you said they were. Plaza Gardens does not offer quality food in the slightest, with all its regurgitated and over-processed Nestle products, but you will almost certainly leave paying as much as you would have for a proper sit-down meal at Walt's (About €30.) Auberge de Cendrillon I haven't tried in its new incarnation as a princess buffet, but have you seen the prices?! I believe it's €53 for an adult excluding drinks! That's pretty much a meal at the California Grill. (Although it may be completely worth it, I don't know.)

The three table service restaurants are still great, I agree. (I've still got the meat sweats from Silver Spur as we speak.) But they don't seem to be doing the best of business outside of, say, Saturday nights. That's a shame, but it will be even more of a shame when they decide to turn them into character buffets with inappropriate themes. So perhaps lower the prices just a little? Early bird specials? Afternoon tea with Disney characters?

[Tuvok]

I agree on having more different and unique merchandise and selling them in apropriate places which matches the theme, however, I don't agree on the food prices being too high. For one, it's a themepark, so prices aren't the same as in your local McDonald's or other fast food offering. You're also paying for the theme and location. There are dining options for everyone and for every price. Walt's Restaurant for example is expensive, yes, but it's meant to be an excellent quality table service offering (and it IS excellent, having sat down there several times now). If you can't or won't pay the price they are offering, go to a buffet or counter service restaurant, which offers menu's or food options everybody can pay.

Of course you would pay more than at McDonald's, no one would expect otherwise. But you're not getting a good product for your money, and that's not a good business strategy anywhere. That's about the fast food, of course, which really is terrible, and to an extent the buffets.

The buffets, by the way, are not affordable at all, as you said they were. Plaza Gardens does not offer quality food in the slightest, with all its regurgitated and over-processed Nestle products, but you will almost certainly leave paying as much as you would have for a proper sit-down meal at Walt's (About €30.) Auberge de Cendrillon I haven't tried in its new incarnation as a princess buffet, but have you seen the prices?! I believe it's €53 for an adult excluding drinks! That's pretty much a meal at the California Grill. (Although it may be completely worth it, I don't know.)

The three table service restaurants are still great, I agree. (I've still got the meat sweats from Silver Spur as we speak.) But they don't seem to be doing the best of business outside of, say, Saturday nights. That's a shame, but it will be even more of a shame when they decide to turn them into character buffets with inappropriate themes. So perhaps lower the prices just a little? Early bird specials? Afternoon tea with Disney characters?

Oh yes, Silver Spur is one of my favorites too! The I-Bone steak is the best steak I ever had. I can't speak for the Plaza Gardens buffet, as I never sat down there, but I can speak for Agrabah Café and Inventions, which are both excellent buffet restaurants in two different price categories. Auberge de Cendrillon is including drinks for both adults & children and you get Disney characters (Princesses & Princes) with high quality table service. Same goes for Inventions. It also offers diner with Disney characters with high quality cuisine and a stunning view over Disneyland Park. Those prices ARE worth it, at least in my opinion.

So lowering the prices? Yes and No. Yes, I have to agree with you that they should launch special low-priced menu's during low attendance days or off-hours during the week. They are in fact doing just that with reduced menu's at Walt's and extra AP discounts at buffet restaurants during off-hours, but they could do more. No, they shouldn't lower the normal prices on a whole, because it realy is worth the price. They need to give people a choice, either pay less outside the normal diner hours with a reduced menu, or pay the normal price at a time it suits your needs with a full choice of food options at your disposal.

[pussinboots]

Plaza Gardens has put me off from trying out the Agrabah Cafe as well as the Lucky Nugget Saloon, whatever the dickens that constitutes nowadays. Some sort of character meal with a cheerful show on stage? Probably. But if you can guarantee me that at least a sizable portion of Agrabah Cafe's menu consists of something other than Buitoni freezer pizzas and supermarket puddings, I'll give it a try, haha.
 
So the Auberge, how does that work now then? Is that a set-price three-course meal with unlimited drinks? Because that's still, what, €25? on top of similar deals at Walt's and Blue Lagoon. And character meals aren't really the first thing people associate with a classy and quality restaurants... But hey, there is a market for it.

(I have to say that this isn't really my cup of tea. The little girls in princess dresses, daddy playing Santa Claus with mommy sitting silently in the corner, thinking of how she scrubs and feeds Lindsay all year long and now daddy comes back from his affair-laden business trips for three days and buys her a stuffed unicorn the size of a pony and who's Lindsay's favorite parent now! That sort of thing. It's dreadful.)

[dagobert]

Pussinboots, you should give Agrabah Cafe a try. It's our favorite restaurant at DLRP, we like it even better than Walt's.

The food is a huge problem at DLRP, especially the counter service fast food is bad. I don't get it why DLRP can't improve the quality. People aren't stupid, they realize that the quality served doesn't match the price. I know it's a themepark and so prices are higher, but other themeparks offer a lot better fast food than DLRP does. Maybe lowering the prices means more spending, because more people can afford it.

TWDC also released their first quarter results and the Parks And Resort segment is doing well on the first look.

http://dolimg.com/investorrelations/web ... 34GJB1.pdf

If you read further the increase is due to higher ticket prices and fast food spending. Especially at WDW people will not leave the parks for lunch or dinner, it's not as easy as in Paris where DV is in front of the gates. There you don't lose so much time for leaving the parks. At WDW it means that people spend more on food in the parks and there the food is not comparable with Paris. It's cheaper and better. At least it was two years ago.