2015 Annual Results : three questions for Mark Stead, Senior Vice President and Chief Financial Officer

Logo_Euro_Disney_SCAAs the Euro Disney Group reported it’s  Fiscal Year results for 2015, Disneyland Paris News the company’s  digital magazine asked three questions to Mark Stead, Senior Vice-President and Chief Financial Officer, to understand them and put them in perspective.

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  • What are the main developments of fiscal year 2015?

We are pleased to announce solid revenue growth for fiscal year 2015, reflecting higher theme park attendance, hotel occupancy and guest spending.

In 2015 overall revenues increased 7% from 2014 and we reached almost €1.4 billion in Resort operating segment revenues, representing a 9% increase from 2014. These results reflect this year’s higher attendance, higher occupancy and higher spending per guest in our theme parks and in our hotels.

With 14.8 million guests this year, attendance has risen by 5% while the hotel occupancy rate increased by four percentage point.

Guest spending reached two record highs:  spending per guest in theme parks increased 6% to €53.66, while spending per room increased 3% to €237.88.

Our markets are thus showing positive signs, but this remains subject to the confirmation of the European economic recovery.

  • How can this performance be explained?

Growing park attendance as well as higher hotel occupancy is spurred by an improving macroeconomic climate, but they are also due to the success of our ‘early booker’ offers in the United Kingdom, France, and Spain – not to mention the better weather we enjoyed in 2015.

The increase in average spending per guest resulted from higher spending on admissions, food and beverage and merchandise.

The increase in average spending per room was due to higher daily room rates and higher spending on food and beverage, partly offset by lower spending on merchandise.

On the other hand, our costs and expenses increased 8% in 2015. This increase has three main drivers:

– Costs related to higher Resort volumes.

– Investments in new shows, attractions, and hotels:  we further enriched our guest offerings with new entertainment experiences, such as Frozen Summer Fun and the Jedi Training Academy. We have also continued with the implementation of our hotel and park refurbishment program.

– Our investment in our Cast Members, with increased labor costs.

In summary, the increase in our costs results from costs associated with higher resort volumes, costs related to the enhancement of the guest experience and costs linked to our investment in our Cast Members.

  • Do these results reflect the strategy of our Group?

The increases in revenues and in average spending are the product of our long-term strategy, which is to improve the experience we create for our Guests and Cast Members.

We remain confident that investing in our resort is essential, because these investments will enable us to improve guest satisfaction.

That’s why in 2015, we continued to invest in our shows (Frozen Sing-along and Jedi Training Academy), and in our attraction renovations (Space Mountain: Mission 2, Videopolis, etc.) and in our hotels (second phase of hotel room renovation in Disney’s Newport Bay Club).

Over the long term, we’ll continue implementing our strategy of investing in a high-quality guest experience, and we’ll continue to renovate our resort in preparation of our 25th anniversary in 2017.

 

Source: Disneyland Paris News

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