Losses widen at debt-strapped Euro Disney
PARIS, April 28 (Reuters) - French theme-park operator Euro Disney , in talks with its creditors over rescheduling its mountainous debt, posted a wider first-half net loss on Thursday due partly to the resumption of royalty payments.
The European outpost of the Walt Disney Company (DIS) posted a net loss of 108.9 million euros ($128.8 million) in the six months to end-March, after a loss of 82.7 million a year earlier.
It swung to an operating loss of 56.1 million euros from profit of 16 million a year ago, on sales of 473.8 million euros -- virtually flat on 472.6 million last time.
Analysts had declined to give earnings forecasts, but one predicted turnover of 485 million euros.
The firm, which adopted new accounting methods at the end of fiscal 2003, also said in a statement that talks with its creditors were continuing.
It said it believed it had sufficient liquidity through to May 31, when a deadline for renegotiating its debt expires, and had set aside an additional debt security deposit of 40 million euros, taking the total to 100 million.
Euro Disney Chairman Andre Lacroix said he was encouraged by a six percent increase in revenues from its theme parks -- the Magic Kingdom and the Walt Disney Studios -- to 229.6 million euros, thanks to an increase in average spending per guest which was offset by a "modest decrease" in attendance.
"At the same time, we must reach an agreement with our stakeholders to resolve our financial situation," he said. REUTERS
PARIS, April 28 (Reuters) - French theme-park operator Euro Disney , in talks with its creditors over rescheduling its mountainous debt, posted a wider first-half net loss on Thursday due partly to the resumption of royalty payments.
The European outpost of the Walt Disney Company (DIS) posted a net loss of 108.9 million euros ($128.8 million) in the six months to end-March, after a loss of 82.7 million a year earlier.
It swung to an operating loss of 56.1 million euros from profit of 16 million a year ago, on sales of 473.8 million euros -- virtually flat on 472.6 million last time.
Analysts had declined to give earnings forecasts, but one predicted turnover of 485 million euros.
The firm, which adopted new accounting methods at the end of fiscal 2003, also said in a statement that talks with its creditors were continuing.
It said it believed it had sufficient liquidity through to May 31, when a deadline for renegotiating its debt expires, and had set aside an additional debt security deposit of 40 million euros, taking the total to 100 million.
Euro Disney Chairman Andre Lacroix said he was encouraged by a six percent increase in revenues from its theme parks -- the Magic Kingdom and the Walt Disney Studios -- to 229.6 million euros, thanks to an increase in average spending per guest which was offset by a "modest decrease" in attendance.
"At the same time, we must reach an agreement with our stakeholders to resolve our financial situation," he said. REUTERS