Euro Disney S.C.A., parent company of Euro Disney Associes S.C.A, operator of Disneyland Paris, reported revenues for its consolidated group for the third quarter of fiscal year 2009, as well as the revenues for the nine months ended June 30, 2009. For the third quarter, total revenue was 307.7 million euros, compared to 330.5 million euros in the third quarter of 2008, a drop of 6.9 percent. For the nine-month period, total revenue was 866.5 million euros, compared to 933.2 million euros for the same period in 2008, a decline of 7.1 percent.
Resort operating segment revenues decreased 5 percent to 861.2 million euros from 907.6 million euros in the prior-year period. For the nine months ended June 30, 2009, theme parks revenues decreased 3 percent to 482.1 million euros from 498.4 million euros in the prior-year period, resulting from a 4 percent decrease in average spending per guest, partly offset by a 1 percent 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 percent to 341.4 million euros from 371.4 million euros in the prior-year period, reflecting a 3.8 percentage point decrease in hotel occupancy and a 4 percent 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. Real estate development operating segment revenues declined by 20.3 million euros from the prior-year period to 5.3 million euros. Prior-year real estate revenues included 12.5 million euros of revenue related to the sale of a property in Val d’Europe, which had been subject to a long-term ground lease. The remaining decrease resulted from a reduction in the number of transactions closed in the nine months ended June 30, 2009, with one transaction closed in the current year compared to four in the prior-year period.

Resort operating segment revenues decreased 7 percent to 307.3 million euros from 330.0 million euros in the prior-year quarter, despite the favorable impact of the shift of the Easter holiday in some of our key markets from the second quarter in the prior-year period to the third quarter in the current fiscal year. Theme parks revenues decreased 5 percent to 172.4 million euros from 182 million euros in the prior-year quarter, resulting from a 5 percent decrease in average spending per guest. This reduction in average spending per guest was due to lower spending on admissions and merchandise, driven by a higher proportion of our guests visiting from markets close to Paris. Increased French and Belgian visitation was offset by fewer guests visiting from Spain, the United Kingdom and the Netherlands.

Hotels and Disney Village revenues decreased 10 percent to 121.8 million euros from 135.4 million euros in the prior-year quarter, due to a 6.1 percentage point decrease in hotel occupancy and a 3 percent decline in average spending per room. The reduction in hotel occupancy resulted from 32,000 fewer room nights compared to the prior-year quarter, primarily driven by fewer business groups and guests visiting from Spain and the United Kingdom partially offset by more French and Belgian guests. The decline in average spending per room principally reflected lower guest spending on food and beverage.

Philippe Gas, chief executive officer of Euro Disney S.A.S, said, “Consistent with the broader tourism industry in Europe, our revenues have been impacted by the challenging economic environment and consumer spending behavior. At the onset of the economic downturn, we implemented promotional offers to which our proximity markets in particular have responded. This decision has succeeded in driving attendance to Disneyland Paris, confirming the strong affinity for quality Disney entertainment, while at the same time impacting guest spending and margins. We are closely managing our costs and have curtailed certain capital spending in this current environment. However, in line with our long-term growth strategy, we continue to invest in the resort and are developing new attractions to open next year.”

On May 22, 2009, the company announced the nomination of Greg Richart to assume the responsibilities of Ignace Lahoud as chief financial officer of Euro Disney S.A.S. The group was involved in litigation with a counter party, seeking the refund of certain tax expenses made as from calendar year 2001 related to the group’s hotels. In July, the group settled this matter and recognized 7.1 million euros as a reduction of costs and expenses during the fourth quarter. For more information, visit www.corporate.disneylandparis.com.  

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