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Euro Disney SCA First Half 2005 Results

• Revenues up 5%, Led by Theme Park Growth
• Growth in Park Guest Spending, Attendance and Hotel Occupancy
• Reduced First Half Loss
• Multi-year Attraction Program Launched

Revenues Grow by 5%

Record revenues for the First Half 2005 of € 494.1 million were higher than the prior year's revenues of € 471.1 million, reflecting an increase in theme park revenues from increased attendance and higher guest spending and an increase in real estate segment revenues of € 5.0 million, partially offset by decreases in hotel revenues. Higher theme park guest spending was across the board, with increasing revenues from admissions, merchandise and food and beverages. Hotel revenues reflected lower daily guest spending per room, partially offset by higher occupancy. Lower hotel guest spending per room reflected a difficult comparison with prior year convention activities and lower average daily room rates.

Theme Parks

Theme Parks revenues increased 7 % to € 245.6 million from € 229.6 million in the prior year driven by a 6% increase in average spending per guest and a 1% increase in attendance.

Average theme park guest spending was favorably impacted by modest changes in admissions pricing, including a change in the allocation of total vacation package pricing between hotel rooms and theme park admissions, and the increased popularity of the "Park Hopper" ticket. Additionally, merchandise and food and beverage spending were up, reflecting improved capture rates.

Theme park attendance and revenues for the First Half 2005 were positively affected by an earlier Easter season and vacation calendar. This was partially offset by the extremely cold weather during the month of February, which for the Ile-de-France region had the lowest average temperatures in 34 years, resulting in an adverse effect on visitation from the local French market, compared with the prior year.

Guest Numbers:
2004: 5.6
2005: 5.7

Guest Spending (per guest):
2004: €40.1
2005: €42.4

Hotels and Disney Village

Hotel and Disney Village revenues decreased 1 % to € 186.2 million from € 188.9 million in the prior year, reflecting an unfavourable comparison with strong prior year convention activities and a 5 % decrease in average daily guest spending per room, which reflects lower average daily room rates including the impact of a change in the allocation of total vacation package pricing between hotel rooms and theme park admissions, partially offset by a 2 percentage points increase in hotel occupancy. The hotels and Disney Village revenues also benefited from the timing of the Easter season and vacation calendar.

Hotel Occupancy:
2004: 77.9%
2005: 79.9%

Hotel Spending per Room:
2004: €177.8
2005: €169.7

Other

Other revenues (which primarily include participant sponsorships, transportation and other services sold to guests) increased 10% primarily reflecting increased guest spending on transportation and other guest services.

Real Estate Segment

Real Estate Segment revenues increased from the prior year by € 5.0 million to € 9.7 million, reflecting planned land sales.

André Lacroix commented:

"We are pleased with our First Half 2005 revenue growth of 5%, reflecting the third consecutive quarter of revenue growth for our Resort.
With our financial restructuring complete, we can now pursue the execution of our long-term strategy aimed at growing revenues and EBITDA, while providing the highest quality experience for our guests.

Disneyland Resort Paris, Europe's number one tourist destination, has an exciting future as it begins to implement a multi-year attraction program to enhance its family entertainment offering."

New Investment Program

Just one thing we haven't heard before here:

"Total investment spending for the fiscal year 2005 through 2009 program is budgeted at approximately € 240 million, of which approximately € 12 million has been incurred through the end of the First Half 2005."

So they spent €12m by the end of the First Half 2005?  Could that be the combined cost of SM:M2 and LOTLK then? :-o  Expensive!