Euro Disney Revenues Fall By 7%
The number of visitors to Euro Disney increased by 111,000 year on year accumulating in a record 7.1 million in its first half ending 31st March 2009. However, despite this increase in park visitors, revenues fell by 7.3% to £496.5 million.
Philippe Gas, Euro Disney chief executive said: “Our Spanish and English markets declined significantly during the first semester, partially offset by a strong performance from our French market”
Gas added that they had reacted to the changes by increasing sales initiatives and continuing to cut costs. First half costs were reduced by 0.4% to £533 million, resulting in an operating loss of £35.5 million, versus a £1.1 million profit last year.
Euro Disney’s business conditions are subject to seasonality effects, with revenue typically lower in the first half of the year compared to the second. This year’s results were also affected by the fact that the Easter holidays occurred in April rather than March, whilst a decline in theme parks revenues has been attributed to a £1.47 reduction in average spending per guest to £38.28. The fall in spending reflects a greater number of promotional offers deployed by the company.
