Third Quarter 2009 Revenues Announcement

[Anthony]

Third Quarter Announcement
Nine Months Ended June 30, 2009

• Nine-month year-to-date revenues decreased 7% to € 867 million, reflecting a decline in guest spending, in real estate revenues and in hotel occupancy
• Third quarter revenues decreased 7% to € 308 million, reflecting declines in guest spending and hotel occupancy

Resort operating segment revenues decreased 5% to € 861.2 million from € 907.6 million in the prior-year period.

For the nine months ended June 30, 2009, theme parks revenues decreased 3% to € 482.1 million from € 498.4 million in the prior-year period, resulting from a 4% decrease in average spending per guest, partly offset by a 1% increase in attendance. The reduction in average spending per guest was due to lower spending on admissions and merchandise. This lower spending was driven by a higher proportion of our guests visiting from markets close to Paris. An increase in French and Belgian visitation drove theme parks attendance and was partially offset by fewer guests visiting from Spain and the United Kingdom.

For the nine months ended June 30, 2009, Hotels and Disney Village revenues decreased 8% to € 341.4 million from € 371.4 million in the prior-year period, reflecting a 3.8 percentage point decrease in hotel occupancy and a 4% decline in average spending per room. The reduction in hotel occupancy resulted from 66,000 fewer room nights compared to the prior-year period, primarily driven by fewer guests visiting from Spain and the United Kingdom and lower business group activity. This decrease was partially offset by a higher level of French and Belgian guests. The decline in average spending per room principally reflected more promotional offers and lower spending on food and beverage.

Other revenues, which include participant sponsorships, transportation and other travel services sold to guests, were comparable to the prior year period.

http://corporate.disneylandparis.com/CO ... 0-2009.pdf

So we can basically learn that, when the purse strings are tightened, people don't consider the huge premium for Disney Hotels a price worth paying, nor for food and drink in the parks. Quelle surprise.

[15yearsofMagic2008]

So what this article is trying to say is DLP aren't getting enough money ? x

[Willow]

It would have been a big surprise if the numbers held or improved during this quarter.

The decreases aren't too bad though.

[Anthony]

So what this article is trying to say is DLP aren't getting enough money ? x

It's not an article, these are financial results from the company that runs the resort.

The decreases aren't too bad though.

No, they're not! They actually did a very good and swift job of damage control from the economic panic with all the promotions and discounts. It does still seem to show though that when people begin to consider what they're spending, they hold back on things like (overpriced, poor quality) food and drink in the park. Visits to the park itself, the attractions, the experience, is still valued highly, people are still coming.

Kinda shows where they need to improve / charge more realistic prices.

[Willow]

It seems that DLRP did better than Walt Disney Parks and Resorts.

They were down 9% compared with our 7%. (I presume this is what the below paragraph means, I'm not good with finances.)

Operating profit at Walt Disney Parks and Resorts fell 19 percent to $521 million, while total revenue was down 9 percent to $2.8 billion, despite favorable timing of the busy Easter holiday.

Also WDW sponsorships also decreased whereas DLRP's remained the same.

Link

[davewasbaloo]

what that statement means Willow is that the costs for Disney have gone up, but the profit has likely decreased at the same time because either they did not increase their prices enough, or they did not have enough people spending money (probably a bit of both in all likelyhood).

[Pete's Dragon]

With the world economy in the state it is, companies need to keep a close eye of these kind of results and figures to see where they are vunerable and what they can do to improve (or stay afloat)

As Anthony said, attendance still up but people spending less on merchandise and poor food. There's a part of me wishes the figures had been more extreme. Then maybe someone might actually realise that a better quality of food at a more reasonable price might increase trade.( I doubt it, but you always hope)

[Riebi]

Isn´t a big wonder that the spending per guests are down. I hardly tried to give them my money. But I didn´t really found a nice merchandise article. MMP was just cheap, the really collection pieces to expansive and I hadn´t found this normal standard of good quality but pricy things. So I went home with 50 Euro plus of merchandise money...and normaly I have a big - !

For the guests: It´s also not a big mystic thing. They make just ads for UK and Spain. The economic crisis is extremly hard for UK and Spain = no visitors. Maybe they learn this time and make some ads in other countries of europe. Let´s take germany first. I see every day big ads for every bigger theme park in germany. And....the germans are in a speding mode at the moment. They give their money to the economie - so why must DLP be the only theme park in europe that wont get it.
This is a fault they made for years. Focus on just 3 nations is a bit silly if you´re thinking on europe....now they get their price!

[davewasbaloo]

What amazes me is the poor quality of the merchandise (it does not last long at all anymore - our 10+ year old DLP clothes are in ok condition, our 2 y o clothes not), and there is nothing to buy (either cheap or generic rubbish, or the high end stuff, not much in between).

[Riebi]

not much in between.

That is it! They´ve lost the view for "normal" guests a bit.

[seanmartina]

I really wanted to spend money, but most of the merchendise was of very low quality, the MMP stuff was the worse i have ever seen, dont know what they were thinking there, the only think i liked was the disney traditions scupltures, but could buy nothing, my daughter only seen one item the i Love MK leather bag, we ate in walts, cape cod, silver spur, Auberge de Cendrillon, Lucky Nugget, Agrabah Café, and the food was all good quality, no complaints, and coming from the uk the 2.50 euro bottles of water, i was paying 2pounds 30.

[dagobert]

I don't know of which quality the new MMP merchandise is, but If you want to see really bad merchandise then you have to go to WDW.

In my opinion the DLRP merchandise of 2008 was really better than the 2008 merchandise of WDW. We didn't buy anything at WDW except some pins and a WDW sweater.

[ed-uk]

We found some good merchandise in the sales at Disneyland Paris this year. We got some real bargains. I got a new coat, bag and photo albums. I bought a new watch, not in sales and other things. We did well. I don't think the MMP merchandise is that bad. It doesn't look out of place in a Disney theme park. Some years are better than others, but we always find things to buy in the shops.

[Pete's Dragon]

As the revenues reported are only up to the end of June, hopefully DLP will see these figures hold, or even increase over the summer months.

 I know I'm gonna do my bit in September (and so will the kids Im sure)  

[smurfy74]

me and my better half got some real good bargains in the sale in the disney village and studio one in June and the quality seems to be quite good, so far, we were really pleased with our purchases. We will see what our nephews like in September seeing as they havent been before.

on the revenue announcement - i think they have done a good job at limiting the downturn, it will be interesting on how they fair over summer, in September the Santa Fe and the Cheyenne seem to be full most of the month, looking at availability.

I wonder what capital projects they have shelved??? any ideas?