2009 Annual Report due 12th November

[ightenhill]

Can be seeen now on the share pages http://corporate.disneylandparis.com/CO ... r-2009.pdf

I do see a certain irony in the statement "Throughout the year we balanced our promise of high quality Disney Entertainment experience for our guests whilemanaging costs" All I see are no major shows any more that made Disney what it is, and cheap rubbish replacing it but maybe thats just me..

Other than that there is some positive to be gleaned from the report, even in turbulent fiscal  times..

Looks like Tiana is on her way to join the parade..

[Adam]

Interesting to look at the figures year on year:

* Attendance up by 100,000 people despite recession and MMP.
* Occupancy only slipped by 3.6% - however, they cite Spain as a significant factor in this - wouldn't the UK be a significant one?
* Revenue down by 7%, with costs down by 2.4% to reduce the impact.
* Operating loss of €63m
* Average spend per guest down by 4.5% and per room down by 4.8% - not surprising, but could show a bit more spent by some in a room than others - parents vs children?
* Hotels and Disney Village worst hit with drop of 7.9% - logical, as people will spend in the parks, but go to a cheaper hotel and eat somewhere less expensive.
* The figures would have been a lot better without the repayments of borrowing and the balance sheet hasn't been affected to a huge degree.

Overall, not too bad.

[Tuvok]

This could be much worse. I'm really sruprised at how 'good' our resorts holds up during these economic times. Increased attendance levels also confirms that MMP has a possitive effect on people and attract them to visit the resort. With no attractions added during this year, 'Mickey' was the only star.
I think we will welcome even more visitors next year with the opening of Toy Story Playland. I'm looking forward to see it for myself. Will go back in 2 weeks to experience the wonderful new Christmas events and shows.
It also amazes me that DLRP has 340 mil EUR in cash... Can they use all of that to built new rides, the convention centre, hotels and other stuff?

[andrewuk]

What amazes me is that TWDC are willing to let DLP carry on and on with the huge debt, treating it almost like a naughty child paying some of their pocket money after they broke a window :!: Surely they could clear some it :?:

There is also the line about cost-cutting if they don't meet financial objectives next year that worries me. They must know that they have made profit only after big investments (Space Mountain, 15th anniversary) and have cut back so much already.

[dagobert]

Hopefully DLRP will continue to increase the attendance numbers over the next years.

TWDC also released the annual report. I think it is very interesting that DLRP is featured so heavily in the Parks & Resort Section of their annual report while HKDL isn't mentioned once.

http://corporate.disney.go.com/investor ... 009_q4.pdf

[Willow]

From what I see, the best news coming out of the report is that Attendance was a new record, I expected attendance to drop after the main 15th ended.
Looks like Mickey's Magical Party worked.

€25 million was spent on management and royalty fees to TWDC, this wasn't paid so has been  converted into debt.

Good news that the debt scheduled to be paid, was paid.

[andrewuk]

Looks like Mickey's Magical Party worked.

Only as an advertising gimmick IMO.
My take is that the new attractions from the 15th are still having an effect. I think that rides get people in first time not half-baked stage shows but I could be wrong.

[Anthony]

My take is that the new attractions from the 15th are still having an effect. I think that rides get people in first time not half-baked stage shows but I could be wrong.

Definitely, I agree this is still most likely a tail-off from the success of recent years.

In fact, look at the First Half report and attendance was at 7.1m - up 0.1m on 2008. So that 0.1 increase actually comes from the October-March period, right?

Therefore it's been completely, absolutely flat during the Mickey's Magical Party months so far, and even then I dare say they've only managed to keep it up thanks to these constant 20, 30 40% price cuts. They're running another 30% discount in the UK now, during their most most popular season! It's surely not healthy, in business terms.

Just to kick MMP further, I'd even suggest it's been a hindrance on their business. The adverts are tacky, the brochures don't show anything of the parks, the website is plain awful. They've had to slash prices just to get people interested. The regular prices just absolutely don't match what they're advertising.

But yeah, results aren't too bad given that there are still so many things about Euro Disney SCA that make you want to bang your head against the wall. They must be the only theme park on earth without a YouTube or Twitter account, for example. How much do they cost? Not 63 million euros...

I just hope that, if things continue this way, they look at improving what they're doing rather than giving up and cutting costs. I know they need to do that in the short term, but only so far. Investing in a website that isn't crap and a marketing team that don't want to make everything look like a character-filled Disney Store catalogue would be a start.

Come out fighting, don't run around like headless chickens cancelling quality shows and giving people annual passports for €1, for heaven's sake. Do they have the marketing manager of Netto working for them?

[smurfy74]

on the flip side without MMP would the figures have stayed at last years levels - you can spin anything  :wink:

[Tuvok]

Definitely, I agree this is still most likely a tail-off from the success of recent years.

In fact, look at the First Half report and attendance was at 7.1m - up 0.1m on 2008. So that 0.1 increase actually comes from the October-March period, right?

Therefore it's been completely, absolutely flat during the Mickey's Magical Party months so far, and even then I dare say they've only managed to keep it up thanks to these constant 20, 30 40% price cuts. They're running another 30% discount in the UK now, during their most most popular season! It's surely not healthy, in business terms.

Just to kick MMP further, I'd even suggest it's been a hindrance on their business. The adverts are tacky, the brochures don't show anything of the parks, the website is plain awful. They've had to slash prices just to get people interested. The regular prices just absolutely don't match what they're advertising.

But yeah, results aren't too bad given that there are still so many things about Euro Disney SCA that make you want to bang your head against the wall. They must be the only theme park on earth without a YouTube or Twitter account, for example. How much do they cost? Not 63 million euros...

I just hope that, if things continue this way, they look at improving what they're doing rather than giving up and cutting costs. I know they need to do that in the short term, but only so far. Investing in a website that isn't crap and a marketing team that don't want to make everything look like a character-filled Disney Store catalogue would be a start.

Come out fighting, don't run around like headless chickens cancelling quality shows and giving people annual passports for €1, for heaven's sake. Do they have the marketing manager of Netto working for them?

So you rather would them to keep those expensive shows and come even more in dept then they allready are? Why is it that you are blaming MMP for the decrease in profit? You haven't heard about the economic crisis that is holding the entire world in it's grip? You actually have the illusion that people are not vissiting the resort because they think MMP is crap? Wake up! Consumers all over the world are spending less money on EVERYTHING. Not just vacation trips like Disneyland, they also cut there spendings on cars, furniture, houses, the whole package. Every single branche in the world is reporting decline in consumer spendings, but you blame MMP for the loss this year...

It's one thing to dislike a theme year, but to twist simple facts as the economic break down in order to blame something you personaly don't like is really very sad.
It would not have made any difference if they extended the 15th anniversary theme for yet another year (or have no theme year at all, for that matter), people would still spend less money in the resort then the year before. It's simple economics, IF you're willing to have an objective view on it.

I would bet that even IF Disneyland maintained there shows, or even built new attractions during this year, there would still be a loss, because consumers are much more carefull in spending their money regardless of what they are offered. This behaviour will remain present during the next year, so yes they'll have to stay with theme years without 'broadway-production shows' in order to make it 'new' and attract visitors.

If DLRP follows your 'recommendations' to go back to these expensive shows, extended operating hours and more cast members, they can close the gates forever. They have to act now, and that's just what they did. Keeping the loss to a minimum and reserving money to grow again when the economy is back on track and visitors are spending more money again. That's what every single company in the world is doing right now, including Disney.

Did you see the results for The Walt Disney Company as a whole this year? The entire Parks & Resorts Division reported a decline of 7% globally. I don't suppose you want to blame that too on 'crap theme years'?

[ed-uk]

EuroDisney has lost money from the get go in 1992. What has kept it going over the years is support from the French goverment, and more money being poured in to it by the WDC and shareholders. It's got nothing to do with MMP. EuroDisney has a huge mountain of debt to pay off. It's not a question of giving up, they have to pay it back. The company has come out fighting, they even built a second park against the odds. It marked a big turn around for the company that, I don't think some people realise. Ok they cut two shows in the summer Tarzan ( which was 10 years old anyway)  and the Lion King. But over the last two years they've expanded the Studios with TOT, Crushes coaster and Stitch Live. I don't know what it is about EuroDisney that makes people want to bash their head against the wall. We've even got a shareholders club. Not even shareholders in the WDC have that. It has to be affordable for people to go to, which is why they have to discount in a recession. I think the results this year are down to the recession, not MMP.

[Anthony]

You actually have the illusion that people are not vissiting the resort because they think MMP is crap? Wake up! Consumers all over the world are spending less money on EVERYTHING. Not just vacation trips like Disneyland, they also cut there spendings on cars, furniture, houses, the whole package. Every single branche in the world is reporting decline in consumer spendings, but you blame MMP for the loss this year...

Not quite, no. I suggested it's been a "hindrance", and only then in terms of its advertising, the brochures... All I talked about was the advertising. You're right, people are looking twice at everything they're spending. So they came to thinking about going to DLP, saw these ads, and surely some just thought "we can miss this year", didn't they? The garish and tacky brochures bear no relation to the package prices they charge in my view. DLP is a wonderful, beautiful place, but they often just don't show that to people.

Go and look at a brochure for Walt Disney World, see how they present themselves, and then tell me which you think joe public would consider "worth the money".

Stick a supermarket label on a pair of designer boots and people just won't pay.

If DLRP follows your 'recommendations' to go back to these expensive shows, extended operating hours and more cast members, they can close the gates forever.

Who are you replying to now? I didn't mention two of those and certainly didn't "recommend" the other.

Cancelling the "quality" shows. On one hand, we've seen costs cut with Tarzan and Lion King, which should actually never have been at the tiny Videopolis Theatre to start with (awful cost to benefit ratio). On the other, they've had 4 performances a day of "Party Time" with that huge cast of 40 and another 5 performances of the rather bad "Dance Time". So why was the universally popular Tarzan cancelled, only for them to then spend money on the new Goofy's Summer Camp, which played to half-full audiences?

I don't suppose you want to blame that too on 'crap theme years'?

Can you stop putting words into my mouth? I didn't blame the loss on anything actually, just posted a few suggestions about where they could look to improve business, where they might actually be setting themselves back.

Thanks for completely misreading and/or twisting around an objective post.

[ightenhill]

TBH looking at the WDW forums the mere idea of them loosing those horrible Lights of Winter (ugly in daylight, blocking a classic view at night) seems to be causing some anger.

There are numerous threads regarding TWDC cutting costs and not spending on rides in Florida whilst all the money is going into the CA refit.. So I suppose we can count are selves lucky that we are actually getting a new area in the studios, the rides may be a bit naff but hopefully the theming will be nice, intact and lead the way for a dark ride addition..

[ed-uk]

On the up side I do think the Studios needed more rides. When the park first opened they only had two rides there, Rock n Roller Coaster and the Flying Carpets, the rest was shows, and not much suitable for very young children. I think Disney have tried to address this issue with Toy Story Playland. Not to mention TOT and Crushes Coaster which are suitable for adult. And yes, I think Disney are having to make cuts and do discounting at their resorts in America at the moment, it's not just EuroDisney doing it.  They're not closing a park two days a week, or a hotel in the winter, or Frontierland on a Monday and Tuesday to save money, that would be bad.

[smurfy74]

On a positive side if the debt can be maintained at its current level in the worst economic situation the resort has ever found itself in then surely this is quite a good thing, with the European economies due to grow further next year then fingers crossed there will be a good debt reduction and a headline profit figure =D>