Euro Disney theme park reported heavy annual losses on Thursday despite welcoming a record number of visitors through its doors in the last 12 months. Figures revealed the loss for the year to September 2012 stood at €85 million.
Euro Disney, operator of a theme park and hotels near Paris, took a record 16 million people through its turnstiles in the last 12 months but reported a big loss on Thursday.
The business, which blamed the loss on the cost of refinancing debt, said it saw profits on the horizon.
The board reported that the net annual loss for the year to September increased by 54.0 percent or by 30 million euros to 85.6 million euros ($109.0 million).
Sales rose by 2.3 percent to 1.324 billion euros.
The loss had worsened mainly because of the non-recurrent cost of refinancing debt, the company said, noting also that it had invested heavily in renovation and in new attractions to mark the 20th anniversary this year of Disneyland Paris.
In September, the US parent company Walt Disney provided a loan of 1.3 billion euros to ease the cost of huge debt, which has now been reduced to 1.71 billion euros.
The interest on this is now 4.0 percent instead of 5.2 percent applied previously by creditor banks.
The company took big charges for the cost of buying back Disneyland parc assets which were on lease-back contracts.
The parc attracted 16 million visitors in the year which was 400,000 more than a previous record last year.
Chief executive Philippe Gas said that this had been achieved in a difficult economic climate, and that this demonstrated the underlying strength of the business, the direction of the strategy and the strong attractiveness of the product.
The programme to mark the 20th anniversary had boosted business at the parc and in the hotels in the second half of the year, after a decline in the first half.
Gas said that 2012 was a turning point for the business. "We are confident in our ability to build on the recent success," he said so as to "achieve lasting profitability in coming years."
Date created : 2012-11-08