Announcing its fiscal year results for 2009, which ended Sept. 30, Euro Disney S.C.A. reported attendance of 15.4 million with an 87 percent hotel occupancy rate and decreased revenues of 7 percent to 1.231 billion euros, driven by a decline in guest spending. The company also reported net loss of 63 million euros, as lower revenues were partially offset by a 2 percent reduction in costs and expenses, ending the year with 340 million euros in cash and cash equivalents as well as the opening of Toy Story Playland at the Walt Disney Studios in 2010.

For the fiscal year, net loss of the group amounted to 63 million euros, compared to a net profit of 1.7 million euros for the prior-year period. Net loss attributable to equity holders of the parent amounted to 55.5 million euros and net loss attributable to minority interests amounted to 7.5 million euros. The net loss of the group was driven by the decreased revenues and operating margin compared to the prior-year period.

Depreciation and amortization for the 2009 fiscal year were 160.8 million euros, up from 159 million euros in 2008, while EBITDA for 2009 was 187.2 million euros, or 15.2 percent as a percentage of revenues, down from 249.5 million euros, or 18.8 percent as a percentage of revenues, in 2008. Theme park attendance in 2009 was 15.4 million, a slight increase from 15.3 million in 2008. Average guest spending for 2009 was registered at 44.22 million euros, a dip from 46.32 million euros in 2008.

Resort operating segment revenues decreased by 6 percent to 1.21 billion euros from 1.28 billion euros in the prior-year period. Theme parks revenues declined by 4 percent to 688.2 million euros from 715.8 million euros in the prior-year period, primarily resulting from a 5 percent reduction in average spending per guest to 44.22 euros, and partially offset by an increase in attendance. The reduction in average spending per guest reflects lower spending on admissions and merchandise. This lower spending was driven by additional promotional offers, which reduced average admission prices, and a higher proportion of our guests visiting from markets close to Paris. These guests generally spend less on merchandise. Theme parks attendance increased slightly to 15.4 million. This increase was driven by higher guest visitation from France and Belgium, partially offset by fewer guests visiting from Spain and the United Kingdom.

Hotels and Disney Village revenues decreased by 8 percent to 474.7 million euros from 515.6 million euros in the prior-year period, due to a 5 percent decline in average spending per room to 201.24 euros and a 3.6 percentage points decrease in hotel occupancy from 90.9 percent to 87.3 percent. The decrease in average spending per room principally reflected more promotional offers and lower spending on merchandise. The reduction in hotel occupancy resulted from 80,000 fewer room nights compared to the prior-year period, primarily driven by fewer guests visiting from Spain and lower business group activity, partially offset by more guests visiting from France and Belgium. Other revenues, which include participant sponsorships, transportation and other travel services sold to guests, decreased 2.3 million euros to 49.8 million euros.

"During the fiscal year, we were faced with the most challenging economic environment in our history, which drove certain fundamental changes in consumer behavior,” the company reported. “These changes included booking significantly closer to their visits, searching for promotional offers and traveling closer to their homes. As a result, we adapted our offers to address our guests' changing needs. This decision delivered record park attendance of 15.4 million and an 87 percent hotel occupancy rate, down from last year but high by industry standards. We saw our guest mix change, as attendance was driven by French and Belgian markets, offsetting significant weakness from Spain and the United Kingdom. These changes also impacted guest spending and hotel occupancy, lowering our revenues. Throughout the year we also balanced our promise of a high-quality Disney entertainment experience for our guests while managing costs. The strength of the Disney brand and the attractiveness of our resort as Europe's number one tourist destination position us well when the recovery of the economies of our key markets and the leisure and tourism industry occur. We continue to invest in the long-term growth of our company and we look forward to opening Toy Story Playland, inspired by the popular Disney-Pixar “Toy Story” characters and films, at the Walt Disney Studios Park in summer 2010."

For fiscal year 2009, the group did not meet its performance objectives as defined and thus deferred the following payments into long-term subordinated debt: 25 million euros of the fiscal year royalties due to TWDC, and 15.1 million euros of interest due. The group expects to defer payment of a further 5.1 million euros of interest due to the CDC during the first quarter of fiscal year 2010. These deferrals and the group's compliance with its financial covenants requirements are subject to final third-party review as provided in the debt agreements. Subject to this final third-party review, the group believes that it has complied with its financial covenant requirements for the fiscal year. For fiscal year 2010, if compliance with 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 TWDC or other parties as permitted under the debt agreements. Although no assurance 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 million euro line of credit available from TWDC, and use of the conditional deferrals. The group plans to repay 89.9 million euros of its borrowings in fiscal year 2010, consistent with the scheduled maturities.

In April 2010, Disneyland Paris will launch the New Generation Festival, a celebration welcoming the most recent Disney characters into the parks. Remy from “Ratatouille,” Princess Tiana from the upcoming Disney animated feature “The Princess and the Frog” and many more characters arrive at Disneyland Paris. These new characters will be showcased in the Once Upon a Dream Parade, Disney's Stars 'n' Cars and on the Disney all-stars express. During the celebration in summer 2010, the Walt Disney Studios Park will welcome three new family attractions in Toy Story Playland, inspired by the animated Disney-Pixar feature “Toy Story.” With oversized decor, guests will have the impression that they've been reduced to the size of Andy's toys as they come to life in Toy Soldiers Parachute Drop, Slinky Dog Zig Zag Spin and RC Racer. For more information, visit www.disneytravelagents.com or corporate.disneylandparis.com/investor-relations.

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