EuroDisney's Silence On Prospects Disappoints
PARIS (Dow Jones)--French theme park group Euro Disney SCA (F.DIS) Wednesday
reported full-year results at the low end of analysts' expectations, and
further disappointed the market by failing to give forecasts for the coming
year.
The company's net profit fell 21% to EUR30.5 million, from EUR38.7 million
last year, due to a rise in lease and net financial charges as well as to a
EUR7.2 million one-off charge. Analysts had expected net profit of EUR26
million to EUR36 million.
In particular, the company booked a charge of EUR5.3 million for the
pre-opening costs of its second Paris theme park, the Walt Disney Studios park.
Operating profit rose to EUR185.2 million from EUR175.8 million. The
consensus expectation was for EUR190 million.
At 0913 GMT, Euro Disney shares were down 1.2% at EUR0.80, having fallen
nearly 4% earlier Wednesday.
"I was expecting more comments on the trend for the coming months," said
CIC-EIFB analyst Annick Thevenon. She hopes for more information at the
analysts' meeting at 0930 GMT.
Another analyst at a large French bank, who asked not to be named, said he
had hoped for an update on visitor numbers since the Sept. 11 terrorist
attacks
in the U.S., which led to a sharp drop in tourism.
"(Sep. 11 events) had little impact on the 2001 fiscal year as it ended on
Sept. 30, but should have one on the 2002 fiscal year," he said.
Euro Disney said that it can't assess with certainty the impact of Sept. 11,
subsequent military action in Afghanistan and the global economic slowdown
will have on its 2002 results, but it said "these events may continue to
reduce personal and business travel as well as discretionary consumer
spending."
One positive element in Euro Disney's report is news that the Walt Disney
Studios park, which will be located next to the first park in Marne-La-Vallee,
near Paris, will open a month earlier than expected, on March 16 2002.
"Construction is going ahead of schedule, and on-budget with approximately
EUR350.6 million of project-related expenditure incurred as of Sept. 30," Euro
Disney said.
The early opening was welcomed by at least one analyst, who said it will
limit the "visit postponement effect" whereby visitors wait for the new park
to open before planning a trip to Disneyland Paris.
PARIS (Dow Jones)--French theme park group Euro Disney SCA (F.DIS) Wednesday
reported full-year results at the low end of analysts' expectations, and
further disappointed the market by failing to give forecasts for the coming
year.
The company's net profit fell 21% to EUR30.5 million, from EUR38.7 million
last year, due to a rise in lease and net financial charges as well as to a
EUR7.2 million one-off charge. Analysts had expected net profit of EUR26
million to EUR36 million.
In particular, the company booked a charge of EUR5.3 million for the
pre-opening costs of its second Paris theme park, the Walt Disney Studios park.
Operating profit rose to EUR185.2 million from EUR175.8 million. The
consensus expectation was for EUR190 million.
At 0913 GMT, Euro Disney shares were down 1.2% at EUR0.80, having fallen
nearly 4% earlier Wednesday.
"I was expecting more comments on the trend for the coming months," said
CIC-EIFB analyst Annick Thevenon. She hopes for more information at the
analysts' meeting at 0930 GMT.
Another analyst at a large French bank, who asked not to be named, said he
had hoped for an update on visitor numbers since the Sept. 11 terrorist
attacks
in the U.S., which led to a sharp drop in tourism.
"(Sep. 11 events) had little impact on the 2001 fiscal year as it ended on
Sept. 30, but should have one on the 2002 fiscal year," he said.
Euro Disney said that it can't assess with certainty the impact of Sept. 11,
subsequent military action in Afghanistan and the global economic slowdown
will have on its 2002 results, but it said "these events may continue to
reduce personal and business travel as well as discretionary consumer
spending."
One positive element in Euro Disney's report is news that the Walt Disney
Studios park, which will be located next to the first park in Marne-La-Vallee,
near Paris, will open a month earlier than expected, on March 16 2002.
"Construction is going ahead of schedule, and on-budget with approximately
EUR350.6 million of project-related expenditure incurred as of Sept. 30," Euro
Disney said.
The early opening was welcomed by at least one analyst, who said it will
limit the "visit postponement effect" whereby visitors wait for the new park
to open before planning a trip to Disneyland Paris.