Euro Disney S.C.A. Reports 2009 First Half Results
Fiscal Year 2009 Reports First Half Results Six Months Ended March 31, 2009Record attendance at 7.1 million and strong occupancy at 86%, despite a shift in the Easter vacation periodResort revenues down 4% to EUR 554 million, due to lower guest spending and a 3 percentage point decrease in occupancyReal Estate revenues down EUR 20 million to EUR 5 million, driven by one significant sale in the prior year
Net loss increased by EUR 42 million to EUR 85 million due to lower revenues, as costs and expenses remained stable
(April 28, 2009) Euro Disney S.C.A. (the "Company"), parent company of Euro Disney Associes S.C.A. ("EDA"), operator of Disneyland(R) Resort Paris, reported today the results for its consolidated group (the "Group") for the first six months of fiscal year 2009 which ended
Key Financial Highlights First Half
(EUR in millions, unaudited) 2009 2008
Revenues 558.8 602.7
Costs and expenses (598.7) (601.4)
(Negative) / Positive operating margin (39.9) 1.3
Plus: Depreciation and amortization 78.7 79.8
EBITDA (1) 38.8 81.1
EBITDA as a percentage of revenues 6.9% 13.4%
Net loss (85.4) (43.4)
Attributable to equity holders of the parent (71.9) (37.5)
Attributable to minority interests (13.5) (5.9)
Cash flow (used in) / generated by operating
activities (23.2) 18.7
Cash flow used in investing activities (28.1) (41.3)
Free cash flow used (1) (51.3) (22.6)
Cash and cash equivalents, end of period 280.0 306.5
Key Operating Statistics (1)
Theme parks attendance (in millions) 7.1 7.0
Average spending per guest (in EUR) 43.01 44.67
Hotel occupancy rate 85.8% 88.5%
Average spending per room (in EUR) 187.16 196.04
(1) Please refer to Exhibit 7 for the definition of EBITDA, Free cash
flow and key operating statistics.
Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:
"We achieved record attendance for the first semester and strong occupancy levels in our hotels. Our sales initiatives are delivering results in an increasingly difficult economic environment.
Our revenues decreased this semester which negatively impacted our results. This decrease was mainly due to a decline in real estate activities as well as a shift of the Easter vacation period into the second semester. Our Spanish and English markets declined significantly during the first semester, partially offset by a strong performance from our French market. We reacted to these changes by increasing our sales initiatives, while at the same time continuing to pursue disciplined cost management.
We continue to improve the appeal of Disneyland Resort Paris. We recently launched Mickey's Magical Party across both parks, with four newinteractive shows and a new attraction. We remain committed to continuing this development of new content and attractions inspired by Disney characters and stories."
Revenues by Operating Segment
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Theme parks 309.6 316.4 (6.8) (2.1)%
Hotels and Disney(R) Village 219.6 235.9 (16.3) (6.9)%
Other 24.7 25.3 (0.6) (2.4)%
Resort operating segment 553.9 577.6 (23.7) (4.1)%
Real estate development operating
segment 4.9 25.1 (20.2) (80.5)%
Total revenues 558.8 602.7 (43.9) (7.3)%
Resort operating segment revenues decreased by 4% to
Theme parks revenues declined by 2% to
Hotels and Disney Village revenues decreased by 7% to
Other revenues, which include participant sponsorships, transportation and other travel services sold to guests, decreased
Real estate development operating segment revenues declined byEUR 20.2 million from the prior-year period. Prior-year real estate revenues included
Costs and Expenses
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Direct operating costs (1) 476.9 483.9 (7.0) (1.4)%
Marketing and sales expenses 64.4 60.7 3.7 6.1%
General and
administrative expenses 57.4 56.8 0.6 1.1%
Costs and expenses 598.7 601.4 (2.7) (0.4)%
(1) Direct operating costs primarily include wages and benefits for
employees in operational roles, depreciation and amortization
related to operations, cost of sales, royalties and management fees.
For the First Half and the corresponding prior-year period, direct
operating costs included royalties and management fees of EUR 32.3
million and EUR 33.5 million, respectively.
Direct operating costs for the First Half decreased
Marketing and sales expenses increased
Net Financial Charges
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Financial income 7.1 7.4 (0.3) (4.1)%
Financial expense (52.8) (52.0) (0.8) 1.5%
Net financial charges (45.7) (44.6) (1.1) 2.5%
Net financial charges increased
Net Loss
For the First Half, the net loss of the Group increased to
Cash as of First Half
Cash and cash equivalents as of
First Half Variance
(EUR in millions, unaudited) 2009 2008
Cash flow (used in) / generated by operating
activities (23.2) 18.7 (41.9)
Cash flow used in investing activities (28.1) (41.3) 13.2
Free cash flow used (51.3) (22.6) (28.7)
Cash flow used in financing activities (43.0) (0.9) (42.1)
Change in cash and cash equivalents (94.3) (23.5) (70.8)
Cash and cash equivalents, beginning of
period 374.3 330.0 44.3
Cash and cash equivalents, end of period 280.0 306.5 (26.5)
Free cash flow used for the First Half was
Cash used in operating activities for the First Half totaled
Cash used in investing activities for the First Half totaled
Cash used in financing activities for the First Half totaled
Update on recent and upcoming events
Mickey's Magical Party
We continue to enhance the appeal of our Resort and we recently launched Mickey's Magical Party, with an exciting new line-up of interactive entertainment and a new attraction, setting the stage for a particularly festive year at Disneyland(R) Resort Paris in 2009.
At the Walt Disney Studios(R) Park, the new attraction Playhouse Disney Live on Stage! provides the opportunity for guests to interact with their favorite friends from Disney Channel programs. The Walt Disney Studios Park also debuts Disney's Stars 'n Cars, a new
At the Disneyland(R) Park, Minnie heads up an all-new Minnie's Party Train that will chug down Main Street,
Liquidity Contract
On
Scheduled Debt Repayments
The Group will repay
Results Webcast: April 28, 2009 at 11:00 CET
To connect to the webcast:
http://corporate.disneylandparis.com/investor-relations/publications/
index.xhtml (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field. Remove the space if one exists.)
Additional Financial Information can be found on the Internet
athttp://corporate.disneylandparis.com
Code ISIN: FR0010540740
Code Reuters: EDL.PA
Code Bloomberg: EDL FP
The Group operates Disneyland(R) Resort Paris which includes: Disneyland(R) Park, Walt Disney Studios(R) Park, seven themed hotels with approximately 5,800 rooms (excluding approximately 2,400 additional third-party rooms located on the site), two convention centers, Disney(R) Village, a dining, shopping and entertainment centre, and a 27-hole golf course. The Group's operating activities also include the development of the 2,000-hectare site, half of which is yet developed. Euro Disney S.C.A.'s shares are listed and traded on Euronext Paris.
Attachments: Exhibit 1 - Consolidated Statements of Income
Exhibit 2 - Consolidated Segment Statements of Income
Exhibit 3 - Consolidated Balance Sheets
Exhibit 4 - Consolidated Statements of Cash Flows
Exhibit 5 - Statement of Changes in Shareholders' Equity and
Minority Interests
Exhibit 6 - Statement of Changes in Borrowings
Exhibit 7 - Definitions
EXHIBIT 1
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
CONSOLIDATED STATEMENTS OF INCOME
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 558.8 602.7 (43.9) (7.3)%
Costs and expenses (598.7) (601.4) 2.7 (0.4)%
(Negative) / Positive operating
margin (39.9) 1.3 (41.2) n/m
Net financial charges (45.7) (44.6) (1.1) 2.5%
Gain / (Loss) from equity
investments 0.2 (0.1) 0.3 n/m
Loss before taxes (85.4) (43.4) (42.0) 96.8%
Income taxes - - - n/a
Net loss (85.4) (43.4) (42.0) 96.8%
Net loss attributable to:
Equity holders of the parent (71.9) (37.5) (34.4) 91.7%
Minority interests (13.5) (5.9) (7.6) n/m
n/m: not meaningful.
n/a: not applicable.
EXHIBIT 2
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
CONSOLIDATED SEGMENT STATEMENTS OF INCOME
Resort operating segment
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 553.9 577.6 (23.7) (4.1)%
Costs and expenses (595.2) (586.8) (8.4) 1.4%
Negative operating margin (41.3) (9.2) (32.1) n/m
Net financial charges (45.7) (44.6) (1.1) 2.5%
Gain / (Loss) from equity
investments 0.2 (0.1) 0.3 n/m
Loss before taxes (86.8) (53.9) (32.9) 61.0%
Income taxes - - - n/a
Net loss (86.8) (53.9) (32.9) 61.0%
n/m: not meaningful.
n/a: not applicable.
Real estate development operating segment
First Half Variance
(EUR in millions, unaudited) 2009 2008 Amount %
Revenues 4.9 25.1 (20.2) (80.5)%
Costs and expenses (3.5) (14.6) 11.1 (76.0)%
Positive operating margin 1.4 10.5 (9.1) (86.7)%
Net financial charges - - - n/a
Gain / (Loss) from equity
investments - - - n/a
Income before taxes 1.4 10.5 (9.1) (86.7)%
Income taxes - - - n/a
Net income 1.4 10.5 (9.1) (86.7)%
n/a: not applicable.
EXHIBIT 3
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
Consolidated Balance Sheets
March 31, September 30,
(EUR in millions) 2009 2008
(unaudited)
Non-current assets
Property, plant and equipment 2,083.1 2,128.2
Investment property 39.3 39.3
Intangible assets 49.2 53.0
Financial assets 2.8 2.1
Other 82.7 78.2
2,257.1 2,300.8
Current assets
Inventories 37.5 37.4
Trade and other receivables 111.6 138.9
Cash and cash equivalents 280.0 374.3
Other 25.8 19.8
454.9 570.4
Total assets 2,712.0 2,871.2
Shareholders' equity
Share capital 39.0 39.0
Share premium 1,627.3 1,627.3
Accumulated deficit (1,494.9) (1,423.0)
Other 11.4 6.4
Total shareholders' equity 182.8 249.7
Minority interests 94.6 108.1
Total equity 277.4 357.8
Non-current liabilities
Provisions 17.5 18.3
Borrowings 1,879.7 1,892.8
Deferred revenues 30.6 31.4
Other 60.7 60.4
1,988.5 2,002.9
Current liabilities
Trade and other payables 263.1 336.7
Borrowings 88.1 86.2
Deferred revenues 92.2 86.7
Other 2.7 0.9
446.1 510.5
Total liabilities 2,434.6 2,513.4
Total equity and liabilities 2,712.0 2,871.2
EXHIBIT 4
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
CONSOLIDATED STATEMENTS OF Cash FlowS
First Half
(EUR in millions, unaudited) 2009 2008
Net loss (85.4) (43.4)
Items not requiring cash outlays:
- Depreciation and amortization 78.7 79.8
- Net book value of investment property sold - 4.5
- Increase in valuation and reserve allowances 2.2 3.1
- Other 2.1 1.5
Net increase in working capital account balances (1) (20.8) (26.8)
Cash flow (used in) / generated by operating activities (23.2) 18.7
Capital expenditures for tangible and intangible assets (28.1) (41.3)
Cash flow used in investing activities (28.1) (41.3)
Net sales / (purchases) of treasury shares (0.1) (0.5)
Repayments of borrowings (42.9) (0.4)
Cash flow used in financing activities (43.0) (0.9)
Change in cash and cash equivalents (94.3) (23.5)
Cash and cash equivalents, beginning of period 374.3 330.0
Cash and cash equivalents, end of period 280.0 306.5
(1) Working capital accounts are composed of Inventories, Trade
and other receivables, Other current assets, Trade and other
payables, Other current liabilities and Deferred income excluding
valuation allowances and Provisions.
SUPPLEMENTAL CASH FLOW INFORMATION
First Half
(EUR in millions, unaudited) 2009 2008
Supplemental cash flow information:
Interest paid 49.4 56.1
Non-cash financing and investing transactions:
Deferral into borrowings of accrued interest under TWDC
and CDC subordinated loans 5.3 5.1
Deferral into borrowings of royalties and management fees 25.0 25.0
EXHIBIT 5
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY AND MINORITY
INTERESTS
(EUR in millions, September 30, Net loss for March 31,
unaudited) 2008 First Half 2009 Other 2009
Shareholders'
equity
Share capital 39.0 - - 39.0
Share premium 1,627.3 - - 1,627.3
Accumulated
deficit (1,423.0) (71.9) - (1,494.9)
Other 6.4 - 5.0 11.4
Total
shareholders'
equity 249.7 (71.9) 5.0 182.8
Minority interests 108.1 (13.5) - 94.6
Total equity 357.8 (85.4) 5.0 277.4
EXHIBIT 6
STATEMENT OF CHANGES IN BORROWINGS
First Half 2009
(EUR in millions, September 30, Transfers March 31,
unaudited) 2008 Increase Decrease (3) 2009
CDC senior loans 240.5 - - (0.8) 239.7
CDC subordinated
loans 761.2 1.1 - (0.8) 761.5
Credit Facility -
Phase IA 157.9 0.9(1) - (31.5) 127.3
Credit Facility -
Phase IB 88.4 0.5(1) - (10.1) 78.8
Partner Advances -
Phase IA 304.9 - - - 304.9
Partner Advances -
Phase IB 92.9 - - (1.6) 91.3
TWDC loans 247.0 29.2(2) - - 276.2
Non-current
borrowings 1,892.8 31.7 - (44.8) 1,879.7
CDC senior loans 1.4 - (0.7) 0.8 1.5
CDC subordinated
loans 1.5 - (0.6) 0.8 1.7
Credit Facility -
Phase IA 63.1 - (31.5) 31.5 63.1
Credit Facility -
Phase IB 20.2 - (10.1) 10.1 20.2
Partner Advances -
Phase IB - - - 1.6 1.6
Current borrowings 86.2 - (42.9) 44.8 88.1
Total borrowings 1,979.0 31.7 (42.9) - 1,967.8
(1) Effective interest rate adjustment. As part of the 2005
financial restructuring, these loans were significantly modified. In
accordance with IAS 39, the carrying value of this debt was replaced
by the fair value after modification. The effective interest rate
adjustment has been calculated reflecting an estimated market
interest rate at the time of the modification that was higher than
the nominal rate.
(2) Increase related to the unconditional deferral of EUR 25.0
million of royalties and management fees of the fiscal year 2009 and
the contractual deferral of interests.
(3) Transfers from non-current borrowings to current borrowings, based on
the scheduled repayments over the next twelve months.
EXHIBIT 7
EURO DISNEY S.C.A.
Fiscal Year 2009
First Half Results
Six Months Ended March 31, 2009
DEFINITIONS
EBITDA corresponds to earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that EBITDA is a useful tool for evaluating the Group's performance.
Free cash flow is cash generated by operating activities less cash used in investing activities. Free cash flow is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that Free cash flow is a useful tool for evaluating the Group's performance.
Theme parks attendance corresponds to the attendance recorded on a "first click" basis, meaning that a person visiting both parks in a single day is counted as only one visitor.
Average spending per guest is the average daily admission price and spending on food, beverage and merchandise and other services sold in the theme parks, excluding value added tax.
Hotel occupancy rate is the average daily rooms sold as a percentage of total room inventory (total room inventory is approximately 5,800 rooms).
Average spending per room is the average daily room price and spending on food, beverage and merchandise and other services sold in hotels, excluding value added tax.
-- Posted April 29, 2009