Euro Disney S.C.A. – Reports 2010 First Half Results
PARIS, May 11, 2010 /PRNewswire-FirstCall/ --
- Revenues decreased 7% to EUR 519 million, driven by lower
theme parks attendance and hotel occupancy, partially offset by
increases in guest spending
- Net loss increased EUR 29 million to EUR 114 million
- Repayment of EUR 45 million of debt during the First Half
Euro Disney S.C.A. (the “Company”), parent company of Euro Disney
Associes S.C.A. (“EDA”), operator of Disneyland(R)
results for its consolidated group (the “Group”) for the first six months of
fiscal year 2010 which ended
Key Financial Highlights First Half
(EUR in millions, unaudited) 2010 2009
Revenues 519.5 558.8
Costs and expenses (593.8) (598.7)
Operating margin (74.3) (39.9)
Plus: Depreciation and amortization 81.8 78.7
EBITDA [1] 7.5 38.8
EBITDA as a percentage of revenues 1.4% 6.9%
Net loss (114.5) (85.4)
Attributable to equity holders of the
parent (95.2) (71.9)
Attributable to minority interests (19.3) (13.5)
Cash flow generated by / (used in)
operating activities 27.8 (23.2)
Cash flow used in investing activites (39.6) (28.1)
Free cash flow used [1] (11.8) (51.3)
Cash and cash equivalents, end of period 283.5 280.0
Key Operating Statistics [1]
Theme parks attendance (in millions) 6.5 7.1
Average spending per guest (in EUR) 43.51 43.01
Hotel occupancy rate 79.6% 85.8%
Average spending per room (in EUR) 189.67 187.16
Commenting on the results, Philippe Gas, Chief Executive Officer of Euro
Disney S.A.S, said:
“The continued challenging economic context is reflected in our First
Half revenues and net results, primarily due to lower attendance and
occupancy at the Resort. For the same period last year, revenues had not been
fully impacted by the economic decline, partly because of the way guests book
their vacations in advance of visits. However, our focus on sales and
marketing initiatives has helped improve guest spending.
We recently launched the Disney New Generation Festival, a year-long
celebration featuring the newest characters from the Disney universe, and
later this summer we will open three new attractions within Toy Story
Playland at the Walt Disney Studios. We are excited to share these updates to
our Resort experience with our Guests.
The dedication and quality Guest service provided by our Cast Members are
essential to the long-term success of our company. The entire management team
remains strongly committed to their well-being, particularly during this
difficult economic and social environment.”
Seasonality
The Group’s business is subject to the effects of seasonality and the
annual results are significantly dependent on the second half of the year,
which traditionally includes the high season at Disneyland(R)
Consequently, the operating results for the First Half are not necessarily
indicative of results to be expected for the full fiscal year.
Revenues by Operating Segment
First Half Variance
(EUR in millions, unaudited) 2010 2009 Amount %
Theme parks 287.3 309.6 (22.3) (7.2)%
Hotels and Disney(R) Village 205.3 219.6 (14.3) (6.5)%
Other 24.9 24.7 0.2 0.8 %
Resort operating segment 517.5 553.9 (36.4) (6.6)%
Real estate development operating
segment 2.0 4.9 (2.9) (59.2)%
Total revenues 519.5 558.8 (39.3) (7.0)%
Resort operating segment revenues decreased by 7% to
from
Theme parks revenues declined by 7% to
million
million, partly offset by a 1% increase in average spending per guest to
43.51
from the
Hotels and Disney(R) Village revenues decreased by 7% to
million
percentage points decrease in hotel occupancy to 79.6%, partly offset by a 1%
increase in average spending per room to
occupancy resulted from 65,000 fewer room nights compared to the prior-year
period, primarily due to fewer guests visiting from the
lower business group activity, partly offset by more French guests staying
overnight. The increase in average spending per room reflected an increase in
daily room rates.
Costs and Expenses
First Half Variance
(EUR in millions,
unaudited) 2010 2009 Amount %
Direct operating costs
(1) 475.5 481.1 (5.6) (1.2)%
Marketing and sales
expenses 62.3 64.4 (2.1) (3.3)%
General and
administrative expenses 56.0 53.2 2.8 5.3%
Costs and expenses 593.8 598.7 (4.9) (0.8)%
(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, royalties and management fees were
Direct operating costs decreased
prior-year period, primarily due to reduced costs associated with lower
business activity and reduced taxes. This decrease was partially offset by
labor rate inflation.
Marketing and sales expenses decreased
prior-year period, as a result of the timing of sales and marketing
initiatives versus the prior-year period.
General and administrative expenses increased
the prior-year period, driven by depreciation related to new system
developments and labor rate inflation.
Net Financial Charges
First Half Variance
(EUR in millions,
unaudited) 2010 2009 Amount %
Financial income 1.6 7.1 (5.5) (77.5)%
Financial expense (41.7) (52.8) 11.1 (21.0)%
Net financial charges (40.1) (45.7) 5.6 (12.3)%
Financial income decreased
term interest rates.
Financial expense decreased
and lower average borrowings.
Net Loss
For the First Half, the net loss of the Group amounted to
million
attributable to equity holders of the parent amounted to
net loss attributable to minority interests amounted to
increase in net loss of the Group was driven by the decreased revenues
compared to the prior-year period.
Cash flows
Cash and cash equivalents as of
down
resulted from:
First Half Variance
(EUR in millions, unaudited) 2010 2009
Cash flow generated by / (used in)
operating activities 27.8 (23.2) 51.0
Cash flow used in investing activities (39.6) (28.1) (11.5)
Free cash flow used (11.8) (51.3) 39.5
Cash flow used in financing activities (45.0) (43.0) (2.0)
Change in cash and cash equivalents (56.8) (94.3) 37.5
Cash and cash equivalents, beginning of period 340.3 374.3 (34.0)
Cash and cash equivalents, end of period 283.5 280.0 3.5
Free cash flow used for the First Half was
Cash flow generated by operating activities for the First Half totaled
This improvement resulted from lower working capital requirements, driven by
the conditional deferral into long term debt of
and interest related to the Group’s fiscal year 2009 performance. These
amounts were paid in the prior-year period. This positive cash impact was
partly offset by a decline in operating margin.
Cash flow used in investing activities for the First Half totaled
39.6 million
increase reflects the development of Toy Story Playland, scheduled to open in
the summer.
Cash flow used in financing activities corresponds to the repayment of
the debt and totaled
million
The Group has covenants under its debt agreements which limit its
investments and financing activities. The Group must also meet financial
performance covenants which require improvements to its operating margin.
For fiscal year 2010, if compliance with these financial performance
covenants cannot be achieved, the Group will have to appropriately reduce
operating costs, curtail a portion of planned capital expenditures and/or
seek assistance from The Walt Disney Company (“TWDC”) or other parties as
permitted under the debt agreements. Although no assurances can be given,
management believes the Group has adequate cash and liquidity for the
foreseeable future based on existing cash positions, liquidity from the
100.0 million
conditional deferral of certain royalties and management fees and interest.
Update on recent and upcoming events
New Generation Festival
On
including
animated features The Princess and the Frog and Remy and Emile from the
Disney/Pixar movie Ratatouille into the Parks, to join in the fun.
In
Studios(R) Park starring characters from the animated Disney/Pixar Toy Story
films. Buzz Lightyear will welcome guests into Andy’s back yard as they are
shrunk to the scale of a toy in an enormous playground. Toy Story Playland
will include three all-new attractions: Toy Soldiers Parachute Drop,
simulating a parachute drop with Andy’s Green Army Men; Slinky Dog Zig Zag
Spin[2], a racetrack attraction and RC Racer, a 25-meter half-pipe race
circuit.
Liquidity Contract
On
with Oddo Corporate Finance for a period of one year. For further
information, please refer to the press release published on
and available on the Company’s website.
Scheduled Debt Repayments
The Group plans to repay
six months of fiscal year 2010, consistent with the scheduled maturities.
First Half Results Webcast:
To connect to the webcast:
http://corporate.disneylandparis.com/investor-relations/publications/
index.xhtml
Additional Financial Information can be found on the Internet at
http://corporate.disneylandparis.com
Code ISIN: FR0010540740
Code Reuters: EDL.PA
Code Bloomberg: EDL FP
The Group operates 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 approximately 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 Statement of Income
Exhibit 2 - Consolidated Segment Statement of Income
Exhibit 3 - Consolidated Statement of Financial Position
Exhibit 4 - Consolidated Statement of Cash Flows
Exhibit 5 - Consolidated Statement of Changes in Equity
Exhibit 6 - Statement of Changes in Borrowings
Exhibit 7 - Definitions
EXHIBIT 1
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
CONSOLIDATED STATEMENT OF INCOME
First Half Variance
(EUR in millions,
unaudited) 2010 2009 Amount %
Revenues 519.5 558.8 (39.3) (7.0)%
Costs and expenses (593.8) (598.7) 4.9 (0.8)%
Operating margin (74.3) (39.9) (34.4) 86.2%
Net financial charges (40.1) (45.7) 5.6 (12.3)%
(Loss) / gain from
equity investments (0.1) 0.2 (0.3) n/m
Loss before taxes (114.5) (85.4) (29.1) 34.1%
Income taxes - - - n/a
Net loss (114.5) (85.4) (29.1) 34.1%
Net loss attributable
to:
Equity holders of the
parent (95.2) (71.9) (23.3) 32.4%
Minority interests (19.3) (13.5) (5.8) 43.0%
n/m: not meaningful
n/a: not applicable
EXHIBIT 2
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
CONSOLIDATED SEGMENT STATEMENT OF INCOME
Resort operating segment
First Half Variance
(EUR in millions,
unaudited) 2010 2009 Amount %
Revenues 517.5 553.9 (36.4) (6.6)%
Costs and expenses (592.0) (595.2) 3.2 (0.5)%
Operating margin (74.5) (41.3) (33.2) 80.4%
Net financial charges (40.0) (45.7) 5.7 (12.5)%
(Loss) / gain from
equity investments - 0.2 (0.2) n/m
Loss before taxes (114.5) (86.8) (27.7) 31.9%
Income taxes - - - n/a
Net loss (114.5) (86.8) (27.7) 31.9%
n/m: not meaningful.
n/a: not applicable.
Real estate development operating segment
First Half Variance
(EUR in millions,
unaudited) 2010 2009 Amount %
Revenues 2.0 4.9 (2.9) (59.2)%
Costs and expenses (1.8) (3.5) 1.7 (48.6)%
Operating margin 0.2 1.4 (1.2) (85.7)%
Net financial
charges (0.1) - (0.1) n/a
Loss from equity
investments (0.1) - (0.1) n/a
Income before
taxes - 1.4 (1.4) n/m
Income taxes - - - n/a
Net profit - 1.4 (1.4) n/m
n/m: not meaningful.
n/a: not applicable.
EXHIBIT 3
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
March 31, September
(EUR in millions) 2010 30, 2009
(unaudited)
Non-current assets
Property, plant and
equipment 1,995.1 2,035.5
Investment property 39.7 39.7
Intangible assets 50.2 54.2
Restricted cash 73.2 70.2
Other 12.7 13.2
2,170.9 2,212.8
Current assets
Inventories 30.7 35.6
Trade and other
receivables 97.2 111.8
Cash and cash
equivalents 283.5 340.3
Other 12.3 14.6
423.7 502.3
Total assets 2,594.6 2,715.1
Shareholders' equity
Share capital 39.0 39.0
Share premium 1,627.3 1,627.3
Accumulated deficit (1,573.7) (1,478.5)
Other (0.2) (1.2)
Total shareholders'
equity 92.4 186.6
Minority interests 81.3 100.4
Total equity 173.7 287.0
Non-current
liabilities
Borrowings 1,845.3 1,880.3
Deferred revenues 28.2 29.1
Provisions 16.6 17.5
Other 63.7 63.4
1,953.8 1,990.3
Current liabilities
Trade and other
payables 272.9 275.1
Borrowings 90.2 89.9
Deferred revenues 102.2 68.9
Other 1.8 3.9
467.1 437.8
Total liabilities 2,420.9 2,428.1
Total equity and
liabilities 2,594.6 2,715.1
EXHIBIT 4
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
CONSOLIDATED STATEMENT OF CASH FLOWS
First Half
(EUR in millions, unaudited) 2010 2009
Net loss (114.5) (85.4)
Items not requiring cash outlays or with
no impact on working capital:
- Depreciation and amortization 81.8 78.7
- Increase in valuation and reserve
allowances - 0.8
- Other 2.7 3.5
Net change in working capital account
balances:
- Change in receivables, deferred income
and other assets 45.0 26.3
- Change in inventories 4.5 (0.7)
- Change in payables and other liabilities 8.3 (46.4)
Cash flow generated by / (used in)
operating activities 27.8 (23.2)
Capital expenditures for tangible and
intangible assets (39.6) (28.1)
Cash flow used in investing activities (39.6) (28.1)
Net purchases of treasury shares (0.2) (0.1)
Repayments of borrowings (44.8) (42.9)
Cash flow used in financing activities (45.0) (43.0)
Change in cash and cash equivalents (56.8) (94.3)
Cash and cash equivalents, beginning of
period 340.3 374.3
Cash and cash equivalents, end of period 283.5 280.0
SUPPLEMENTAL CASH FLOW INFORMATION
First Half
(EUR in millions, unaudited) 2010 2009
Supplemental cash flow information:
Interest paid 24.9 49.4
Non-cash financing and investing
transactions:
Deferral into borrowings of accrued
interest under TWDC and CDC
subordinated loans 9.1 5.3
Deferral into borrowings of royalties
and management fees - 25.0
EXHIBIT 5
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Net loss
for the
September First Half March 31,
(EUR in millions) 30, 2009 (unaudited) Other 2010
(unaudited) (unaudited)
Shareholders' equity
Share capital 39.0 - - 39.0
Share premium 1,627.3 - - 1,627.3
Accumulated deficit (1,478.5) (95.2) - (1,573.7)
Other (1.2) - 1.0 (0.2)
Total shareholders'
equity 186.6 (95.2) 1.0 92.4
Minority interests 100.4 (19.3) 0.2 81.3
Total equity 287.0 (114.5) 1.2 173.7
EXHIBIT 6
STATEMENT OF CHANGES IN BORROWINGS
First Half 2010 (unaudited)
September Transfers March 31,
(EUR in millions) 30, 2009 Increase Decrease (4) 2010
(unaudited)
CDC senior loans 238.9 - - (1.0) 237.9
CDC subordinated loans 776.8 6.5 (1) - (0.9) 782.4
Credit Facility - Phase IA 96.6 0.6 (2) - (31.5) 65.7
Credit Facility - Phase IB 69.0 0.4 (2) - (10.1) 59.3
Partner Advances - Phase IA 304.9 - - - 304.9
Partner Advances - Phase IB 89.8 - - (1.6) 88.2
TWDC loans 304.3 2.6 (3) - - 306.9
Non-current borrowings 1,880.3 10.1 - (45.1) 1,845.3
CDC senior loans 1.6 - (0.8) 1.0 1.8
CDC subordinated loans 1.8 - (0.8) 0.9 1.9
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 3.2 - (1.6) 1.6 3.2
Current borrowings 89.9 - (44.8) 45.1 90.2
Total borrowings 1,970.2 10.1 (44.8) - 1,935.5
(1) Increases are related to the contractual deferral of interest on
certain CDC subordinated loans, including
incurred in the First Half that was conditionally deferred based on the
Group’s 2009 performance.
(2) Effective interest rate adjustments. 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.
(3) Increases are related to the contractual deferral of interest on TWDC
loans.
(4) Transfers from non-current borrowings to current borrowings are based
on the scheduled debt repayments over the next twelve months.
EXHIBIT 7
EURO DISNEY S.C.A.
Fiscal Year 2010
First Half Results
Six Months Ended March 31, 2010
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.
———————————
[1] Please refer to Exhibit 7 for the definition of EBITDA, Free cash
flow and key operating statistics.
[2] Slinky[R] Dog is a registered trademark of Poof-Slinky, Inc. All
rights reserved.
Press Contact
Laurent Manologlou
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: laurent.manologlou@disney.com
Investor Relations
Olivier Lambert
Tel: +331-64-74-58-55
Fax: +331-64-74-56-36
e-mail: olivier.lambert@disney.com
Corporate Communication
Jeff Archambault
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: jeff.archambault@disney.com
SOURCE Euro Disney S.C.A.