uk-2014-annual-review

2014 ANNUAL REVIEW
OVERVIEW OF 2014 RESULTS
FINANCIAL FIGURES
Revenues
€ in millions
Operating margin
€ in millions
EBITDA*
€ in millions, as % of revenues
1, 324.3
1 ,309.4
1, 279.7
3.4
(27.5)
(65.4)
13.4%
11%
177.2
144.3
8.9%
113.8
2012 2013 2014
2012 2013 2014 2012 2013 2014
CONTINUED INVESTMENT
IN A CHALLENGING ECONOMIC CONTEXT
OVERVIEW BY MARK STEAD, CHIEF FINANCIAL OFFICER
Net loss
€ in millions
(100.2)
(78.2)
(113.6)
Consolidated debt
€ in millions
1, 711.0
1 ,709.4
1 ,747.7
Revenue generated
by activity in 2014
3.1%
Other Revenues
2.2%
Real-Estate
Development
During fiscal year 2014, the Euro
Disney S.C.A. group maintained its
investment strategy to drive quality
and guest satisfaction. Nonetheless,
the financial results were impacted by
the softness in the European economy.
Revenues decreased by 2% to €1.28
billion due to a reduction in park
attendance and hotel occupancy,
partially offset by guest spending as well
as an increase in real-estate revenues.
For several years now, our strategy has
focused on improving quality in order
to enhance the guest experience and
drive levels of guest spending. This calls
for important investments throughout
the resort, with the creation of new
experiences in our parks, as for example
Over
€400
million
invested since 2012
with the Ratatouille-inspired attraction
we opened last July, and the multi-year
renovation program for our 5,800 hotel
rooms. This year alone, we refurbished
half of the 1,100 rooms in Disney’s
Newport Bay Club ® – our largest hotel.
Our strategy is starting to see results:
in-park guest spending has increased
by 5% in 2014 (reaching the symbolic
€50 mark), which offset the decrease
in volumes.
Since 2012, we have invested more
than €400 million in resort renovation
and development. Over the next three
years, we intend to continue increasing
this investment. Investment is essential
for continued innovation and to ensure
that Disneyland ® Paris remains an
exceptional destination for millions of
guests. This is not just a belief. It is a
reality that can be seen in the fact that
guest satisfaction rose by 3 points in
2014. Furthermore, in the fourth quarter of
fiscal year 2014 (following the Ratatouille
opening) the overall guest satisfaction rate
for Walt Disney Studios ® Park increased by
4 points. In order to maintain our strategy,
we must improve the financial situation
of our Group. For this reason, in October
2014 we announced a €1 billion recapitalization
project. The proposal will enable
us to reduce our debt significantly and
to have the necessary financial flexibility
to maintain our investments.
We look to the future with confidence.
I am convinced that we can achieve
renewed growth by continuing to invest
and by realizing this recapitalization
project. By doing this, we will be well
positioned to leverage economic recovery
when it arises.
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KEY OPERATING STATISTICS
PARKS
2012 2013 2014
* Earnings before interest, taxes, depreciation, and amortization.
Theme park attendance
in million visits
14 2
•
Average spending
per guest
excluding VAT
50 66
•
HOTELS
2012 2013 2014
Hotel occupancy rate
75 4%
•
Average spending
per room
in €, excluding VAT
232 26
•
38.3%
Hotels &
Disney ® Village
INTENTION TO REVISIT
89%
of guests
would consider
returning.
93%
of guests
would recommend
the destination.
56.4%
Theme Parks
18 19