Euro Disney S.C.A. Reports 2013 First Half Results
PARIS, May 7, 2013 /PRNewswire/ --
• Total revenues increased 3% to € 568 million
• Resort revenues increased 2% reflecting higher guest spending partially offset by anticipated moderate decrease in volumes
• EBITDA at € 3.1 million, up € 1.4 million
• Net loss narrowed by 10% reflecting the positive impact of the 2012 refinancing and an improved operating margin
Euro Disney S.C.A. (the "Company"), parent company of Euro Disney Associés S.C.A. ("EDA"), operator of Disneyland® Paris, reported today the results of its consolidated group (the "Group") for the first six months of fiscal year 2013 which ended March 31, 2013 (the "First Half").
Key Financial Highlights First Half Fiscal
(EUR in millions, unaudited) 2013 2012 Year 2012
Revenues 567.7 552.4 1,324.3
Costs and expenses (650.2) (637.1) (1,320.9)
Operating margin (82.5) (84.7) 3.4
Plus: Depreciation and amortization 85.6 86.4 173.8
EBITDA [1] 3.1 1.7 177.2
EBITDA as a percentage of revenues 0.5% 0.3% 13.4%
Net loss (108.4) (120.9) (100.2)
Attributable to owners of the
parent (89.1) (100.8) (85.6)
Attributable to non-controlling
interests (19.3) (20.1) (14.6)
Cash flow (used in) / generated by
operating activities (19.8) 12.3 142.7
Cash flow used in investing
activities (52.2) (83.8) (152.0)
Free cash flow used [1] (72.0) (71.5) (9.3)
Cash and cash equivalents, end of
period 68.7 230.4 114.3
Key Operating Statistics [1]
Theme parks attendance (in millions) 6.7 6.8 16.0
Average spending per guest (in EUR) 45.97 44.11 46.44
Hotel occupancy rate 78.0% 79.8% 84.0%
Average spending per room (in EUR) 207.84 207.29 231.33
Commenting on the results, Philippe Gas, Chief Executive Officer of Euro Disney S.A.S, said:
"Delivering 3% revenue growth during our first semester is encouraging given the current economic environment and clearly demonstrates the resiliency of Disneyland Paris. Three years ago, we made the decision to increase our investments in the guest experience and the Resort in general and therefore focus on guest spending growth. Our results for the first semester are in line with this strategic choice with a 4% increase in guest spending and a slight decrease in visitation.
"We are seeing the first concrete benefits of the debt refinancing transaction, with substantial interest charge savings for the first semester. With the refinancing, we also benefit from greater flexibility to continue to invest in order to further strengthen the appeal of Disneyland Paris.
"In the second half of the year, we will continue to build on both the success of the 20th Anniversary celebration, which was extended for another 6 months, and the strong commitment of our Cast Members to keep delivering on our brand promise. At the same time, we remain cautious for the rest of the year in light of the continued challenging economy."
Seasonality
The Group's business is subject to the effects of seasonality and the annual results are significantly dependent on the second half of the fiscal year, or April 1 to September 30, which traditionally includes the high season at Disneyland® Paris. Consequently, the operating results for the First Half are not necessarily indicative of results to be expected for the full fiscal year.
Revenues by Operating Segment
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Theme parks 311.4 304.8 6.6 2.2%
Hotels and Disney Village(R) 228.2 224.5 3.7 1.6%
Other 21.5 21.8 (0.3) (1.4)%
Resort operating segment 561.1 551.1 10.0 1.8%
Real estate development operating segment 6.6 1.3 5.3 n/m
Total revenues 567.7 552.4 15.3 2.8%
n/m: not meaningful
Resort operating segment revenues increased 2% to € 561.1 million from € 551.1 million in the prior-year period.
Theme parks revenues increased 2% to € 311.4 million from € 304.8 million in the prior-year period, due to a 4% increase in average spending per guest to € 45.97, partly offset by a 2% decrease in attendance to 6.7 million. The increase in average spending per guest was due to higher spending on admissions, food and beverage and merchandise. The decrease in attendance was due to fewer guests visiting from France, Spain and Belgium.
Hotels and Disney Village® revenues increased 2% to € 228.2 million from € 224.5 million in the prior-year period, reflecting a 17% increase in Disney Village revenues, partly offset by a 1.8 percentage point decrease in hotel occupancy to 78%. The increase in Disney Village revenues mainly reflected the opening of a new boutique, World of Disney, in July 2012. The decrease in hotel occupancy resulted from 24,000 fewer room nights sold compared to the prior-year period, primarily due to fewer guests visiting from Spain, as well as lower business group activity, partly offset by more guests visiting from the United Kingdom.
Other revenues, which primarily include participant sponsorships, transportation and other travel services sold to guests, decreased 1% to € 21.5 million from € 21.8 million in the prior-year period.
Real estate development operating segment revenues increased by € 5.3 million to € 6.6 million, from € 1.3 million in the prior-year period. This increase was due to one land sale closed during the First Half while no land sale closed in the prior-year period.
Costs and Expenses
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Direct operating costs (1) 527.4 513.4 14.0 2.7%
Marketing and sales expenses 68.0 69.5 (1.5) (2.2)%
General and administrative
expenses 54.8 54.2 0.6 1.1%
Costs and expenses 650.2 637.1 13.1 2.1%
Direct operating costs primarily include wages and benefits for employees in operational roles, depreciation and amortization related to operations, cost of sales, royalties and management fees. For the First Half and the corresponding prior-year period, royalties and management fees were € 32.7 million and € 31.6 million, respectively.
Direct operating costs increased 3% compared to the prior-year period due to expenses related to new guest offerings, labor rate inflation and increased costs associated with higher real estate development activity.
Marketing and sales expenses decreased 2% compared to the prior-year period due to lower sales activities and media initiatives.
Net Financial Charges
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Financial income 0.5 2.9 (2.4) (82.8)%
Financial expense (26.3) (38.9) 12.6 (32.4)%
Net financial charges (25.8) (36.0) 10.2 (28.3)%
Financial income decreased by € 2.4 million compared to the prior-year period due to a lower average level of cash and cash equivalents and lower short-term interest rates.
Financial expense decreased by € 12.6 million due to a lower average interest rate on debt following the 2012 refinancing.
Net Loss
For the First Half, the net loss of the Group amounted to € 108.4 million compared to € 120.9 million for the prior-year period.
Cash flows
Cash and cash equivalents as of March 31, 2013 were € 68.7 million, down € 45.6 million compared with September 30, 2012, and down € 161.7 million compared with March 31, 2012. These variances resulted from:
First Half Variance
(EUR in millions, unaudited) 2013 2012
Cash flow (used in) / generated by operating activities (19.8) 12.3 (32.1)
Cash flow used in investing activities (52.2) (83.8) 31.6
Free cash flow used (72.0) (71.5) (0.5)
Cash flow generated by / (used in) financing activities 26.4 (64.2) 90.6
Change in cash and cash equivalents (45.6) (135.7) 90.1
Cash and cash equivalents, beginning of period 114.3 366.1 (251.8)
Cash and cash equivalents, end of period 68.7 230.4 (161.7)
Free cash flow used for the First Half was € 72.0 million compared to € 71.5 million used in the prior-year period.
Cash flow used in operating activities for the First Half totaled € 19.8 million compared to € 12.3 million generated in the prior-year period. This decrease resulted from higher working capital requirements. Changes in working capital during the prior-year period benefited from the deferral into long-term debt of € 33.9 million of royalties and management fees, as permitted by the 2005 restructuring debt agreements. No such benefit occurred in the First Half following the removal of this deferral mechanism after the 2012 refinancing.
Cash flow used in investing activities for the First Half totaled € 52.2 million compared to € 83.8 million used in the prior-year period. This decrease was driven by the level of investments made in the prior-year period in the World of Disney boutique, which opened in July 2012, as well as the timing of capital expenditures related to a new attraction based on the Disney.Pixar movie Ratatouille, scheduled to open in the Walt Disney Studios® Park in 2014.
Cash flow generated by financing activities totaled € 26.4 million for the First Half compared to € 64.2 million used in the prior-year period. During the First Half, the Group drew an amount of € 30.0 million from the € 250.0 million standby revolving credit facility granted by The Walt Disney Company ("TWDC")[2]. In the prior-year period, the Group repaid € 64.3 million of its bank borrowings, consistent with the scheduled maturities before the 2012 refinancing.
In accordance with the scheduled maturities agreed as part of the 2012 refinancing, the Group is only required to repay € 1.4 million of its borrowings with TWDC in the last six months of fiscal year 2013.
UPDATE ON RECENT AND UPCOMING EVENTS
Disneyland® Paris' 20th Anniversary Celebration
On February 28, 2013, the Group announced the extension of Disneyland® Paris' 20th Anniversary celebration until September 30, 2013. Guests now have a second chance to enjoy the festivities that include a new twist on the Disney Dreams®! nighttime spectacular. The show is enriched with scenes from two animated films, The Lion King and Brave, and becomes an interactive experience with Disney Light'Ears[3]. These Mickey ears change color in time with the show, making Disney Dreams! an even more spectacular experience for the whole family. For more information, please refer to the press release available on the Group's website.
New Ratatouille-themed attraction announced for Disneyland Paris in 2014
On February 28, 2013, the Group also announced a new attraction based on the Disney.Pixar movie Ratatouille, scheduled to open in the Walt Disney Studios® Park in 2014. This unique attraction will take guests into the world of Remy - a talented young rat who dreams of becoming a renowned French chef. Disney storytelling and state-of-the-art technology will come together in this romantic, larger-than-life, Parisian experience. For more information, please refer to the press release available on the Group's website.
An Analyst Meeting will be held on May 7, 2013 at 14:30 (CET)
at Le Royal Monceau, 37 avenue Hoche - 75008 Paris
The presentation of the Analyst Meeting will be available at 14:30 on Euro Disney S.C.A. corporate website:
http://corporate.disneylandparis.com/investor-relations/publications/index.html
Additional Financial Information can be found on the Internet at http://corporate.disneylandparis.com
Code ISIN: FR0010540740
Code Reuters: EDLP.PA
Code Bloomberg: EDL:FP
The Group operates Disneyland® Paris, which includes: Disneyland® Park, Walt Disney Studios® Park, seven themed hotels with approximately 5,800 rooms (excluding approximately 2,400 additional third-party rooms located on the site), two convention centers, Disney Village®, a dining, shopping and entertainment center, and a 27-hole golf course. The Group's operating activities also include the development of the 2,230-hectare site, half of which is yet to be developed. Euro Disney S.C.A.'s shares are listed and traded on NYSE Euronext Paris.
Attachments: Exhibit 1 - Consolidated Statement of Income
Exhibit 2 - Consolidated Segment Statement of Income
Exhibit 3 - Consolidated Statement of Financial Position
Exhibit 4 - Consolidated Statement of Cash Flows
Exhibit 5 - Consolidated Statement of Changes in Equity
Exhibit 6 - Statement of Changes in Borrowings
Exhibit 7 - Definitions
EXHIBIT 1
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
CONSOLIDATED STATEMENT OF INCOME
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Revenues 567.7 552.4 15.3 2.8%
Costs and expenses (650.2) (637.1) (13.1) 2.1%
Operating margin (82.5) (84.7) 2.2 (2.6)%
Net financial charges (25.8) (36.0) 10.2 (28.3)%
Loss from equity investments (0.1) (0.2) 0.1 n/m
Loss before taxes (108.4) (120.9) 12.5 (10.3)%
Income taxes - - - n/a
Net loss (108.4) (120.9) 12.5 (10.3)%
Net loss attributable to:
Owners of the parent (89.1) (100.8) 11.7 (11.6)%
Non-controlling interests (19.3) (20.1) 0.8 (4.0)%
n/m: not meaningful
n/a: not applicable
EXHIBIT 2
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
CONSOLIDATED SEGMENT STATEMENT OF INCOME
Resort operating segment
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Revenues 561.1 551.1 10.0 1.8%
Costs and expenses (644.1) (635.9) (8.2) 1.3%
Operating margin (83.0) (84.8) 1.8 (2.1)%
Net financial charges (25.8) (36.0) 10.2 (28.3)%
Loss from equity investments (0.1) (0.2) 0.1 n/m
Loss before taxes (108.9) (121.0) 12.1 (10.0)%
Income taxes - - - n/a
Net loss (108.9) (121.0) 12.1 (10.0)%
n/m: not meaningful.
n/a: not applicable.
Real estate development operating segment
First Half Variance
(EUR in millions, unaudited) 2013 2012 Amount %
Revenues 6.6 1.3 5.3 n/m
Costs and expenses (6.1) (1.2) (4.9) n/m
Operating margin 0.5 0.1 0.4 n/m
Net financial charges - - - n/a
Loss from equity investments - - - n/a
Income before taxes 0.5 0.1 0.4 n/m
Income taxes - - - n/a
Net profit 0.5 0.1 0.4 n/m
n/m: not meaningful.
n/a: not applicable.
EXHIBIT 3
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
September 30,
(EUR in millions) March 31, 2013 2012
(unaudited)
Non-current assets
Property, plant and equipment, net 1,824.4 1,860.8
Investment property 14.2 14.2
Intangible assets 33.9 36.1
Restricted cash 14.9 21.3
Other 17.0 8.9
1,904.4 1,941.3
Current assets
Inventories 43.2 38.7
Trade and other receivables 107.8 116.8
Cash and cash equivalents 68.7 114.3
Other 21.4 24.8
241.1 294.6
Total assets 2,145.5 2,235.9
Equity attributable to owners of the
parent
Share capital 39.0 39.0
Share premium 1,627.3 1,627.3
Accumulated deficit (1,748.5) (1,659.4)
Other (8.1) (15.7)
Total equity attributable to owners
of the parent (90.3) (8.8)
Non-controlling interests (14.9) 2.7
Total equity (105.2) (6.1)
Non-current liabilities
Borrowings 1,709.2 1,709.3
Deferred income 15.4 15.6
Provisions 11.4 12.3
Other 49.6 51.8
1,785.6 1,789.0
Current liabilities
Trade and other payables 281.9 331.7
Borrowings 31.7 1.7
Deferred income 150.5 112.3
Other 1.0 7.3
465.1 453.0
Total liabilities 2,250.7 2,242.0
Total equity and liabilities 2,145.5 2,235.9
EXHIBIT 4
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
CONSOLIDATED STATEMENT OF CASH FLOWS
First Half
(EUR in millions, unaudited) 2013 2012
Net loss (108.4) (120.9)
Items not requiring cash outlays or with no impact on
working capital:
- Depreciation and amortization 85.6 86.4
- Net increase in valuation and reserve allowances 2.9 3.0
- Other (0.3) 1.3
Net change in working capital account balances:
- Change in receivables, deferred income and other
assets 52.9 37.1
- Change in inventories (5.2) (1.7)
- Change in payables, prepaid expenses and other
liabilities (47.3) 7.1
Cash flow (used in) / generated by operating
activities (19.8) 12.3
Capital expenditures for tangible and intangible
assets (50.3) (81.9)
Increase in equity investments (1.9) (1.9)
Cash flow used in investing activities (52.2) (83.8)
Net (purchases) / sales of treasury shares (0.2) 0.1
Cash proceeds from TWDC standby revolving credit
facility 30.0 -
Repayment of borrowings (0.1) (64.3)
Payment of costs incurred during the 2012 refinancing (3.3) -
Cash flow generated by / (used in) financing
activities 26.4 (64.2)
Change in cash and cash equivalents (45.6) (135.7)
Cash and cash equivalents, beginning of period 114.3 366.1
Cash and cash equivalents, end of period 68.7 230.4
SUPPLEMENTAL CASH FLOW INFORMATION
First Half
(EUR in millions, unaudited) 2013 2012
Supplemental cash flow information:
Interest paid 33.5 21.2
EXHIBIT 5
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Net loss
for
September the First March 31,
(EUR in millions) 30, 2012 Half Other 2013
(unaudited) (unaudited) (unaudited)
Equity attributable to
owners of the parent
Share capital 39.0 - - 39.0
Share premium 1,627.3 - - 1,627.3
Accumulated deficit (1,659.4) (89.1) - (1,748.5)
Other (15.7) - 7.6 (8.1)
Total equity
attributable to owners
of the parent (8.8) (89.1) 7.6 (90.3)
Non-controlling
interests 2.7 (19.3) 1.7 (14.9)
Total equity (6.1) (108.4) 9.3 (105.2)
EXHIBIT 6
STATEMENT OF CHANGES IN BORROWINGS
First Half 2013 (unaudited)
September March 31,
(EUR in millions) 30, 2012 Increase Decrease Transfers 2013
(unaudited)
TWDC Loans 1,231.8 - - - 1,231.8
Promissory Note with DEI 268.7 - - - 268.7
Promissory Note with Euro
Disney S.A.S. 92.7 - - - 92.7
TWDC - Centre de congrès 15.9 - - - 15.9
TWDC EUR 100 million
revolving credit facility 100.0 - - - 100.0
TWDC loans 1,709.1 - - - 1,709.1
Financial lease 0.2 - - (0.1) 0.1
Non-current borrowings 1,709.3 - - (0.1) 1,709.2
TWDC - Centre de congrès 1.4 - - - 1.4
TWDC EUR 250 million
revolving credit facility - 30.0 (1) - - 30.0
TWDC Loans 1.4 30.0 - - 31.4
Financial Lease 0.3 - (0.1) 0.1 0.3
Current borrowings 1.7 30.0 (0.1) 0.1 31.7
Total borrowings 1,711.0 30.0 (0.1) - 1,740.9
Amount drawn in the First Half from the € 250 million standby revolving credit facility granted by TWDC to the Group.
EXHIBIT 7
EURO DISNEY S.C.A.
Fiscal Year 2013
First Half Results
Six Months Ended March 31, 2013
DEFINITIONS
EBITDA corresponds to earnings before interest, taxes, depreciation and amortization. EBITDA is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that EBITDA is a useful tool for evaluating the Group's performance.
Free cash flow is cash generated by operating activities less cash used in investing activities. Free cash flow is not a measure of financial performance defined under IFRS, and should not be viewed as a substitute for operating margin, net profit / (loss) or operating cash flows in evaluating the Group's financial results. However, management believes that Free cash flow is a useful tool for evaluating the Group's performance.
Theme parks attendance corresponds to the attendance recorded on a "first click" basis, meaning that a person visiting both parks in a single day is counted as only one visitor.
Average spending per guest is the average daily admission price and spending on food, beverage and merchandise and other services sold in the theme parks, excluding value added tax.
Hotel occupancy rate is the average daily rooms occupied as a percentage of total room inventory (total room inventory is approximately 5,800 rooms).
Average spending per room is the average daily room price and spending on food, beverage and merchandise and other services sold in hotels, excluding value added tax.
--------------------------------------------------
1. Please refer to Exhibit 7 for the definition of EBITDA, Free cash flow and key operating statistics.
2. Please refer to note 12.1. "TWDC Debt" of the Group's 2012 consolidated financial statements, included in the Group's 2012 Reference Document.
3. Disney Light'Ears will be sold beginning in summer 2013 at select locations throughout Disneyland Paris and online.
Press Contact
Laurent Manologlou
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: [email protected]
Corporate Communication
François Banon
Tel: +331-64-74-59-50
Fax: +331-64-74-59-69
e-mail: [email protected]
Investor Relations
Olivier Lambert
Tel: +331-64-74-58-55
Fax: +331-64-74-56-36
e-mail: [email protected]
SOURCE Euro Disney S.C.A.
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