Mickey takes the money
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November 18, 1998: 10:48 a.m. ET
Euro Disney profits to all but vanish when U.S. parent claims its share
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LONDON (CNNfn) - Euro Disney, operator of the Disneyland Paris theme park, reported a 50 percent surge in yearly profits Wednesday, but payments to The Walt Disney Co. will all but wipe out profits this fiscal year.
Net income before one-time items at the group, 40 percent owned by The Walt Disney Co., soared to 248 million francs ($42 million) against 165 million francs in the previous year.
Earnings per share rose to 0.38 francs, compared with 0.28 francs last time.
Walt Disney (DIS) agreed to waive royalty and management fees under the terms of 1994's restructuring package. That waiver ends next year, and the U.S. company is due payments of about 200 million francs a year, according to Euro Disney.
Attendance at the Paris theme park was flat at 12.5 million, due to the competing attraction of soccer's World Cup. Profits soared though as costs were kept under control, despite a 25 percent jump in financial charges.
Revenue in the latest 12 months rose 6 percent to 5.9 billion francs.
Although the company has recovered from its perils in 1994, it is still struggling under a heavy debt load. At its September year-end, borrowings totaled 15.9 billion francs, against shareholders' equity of 7.3 billion.
In Paris Euro Disney shares rose 1.2 percent to 8.65 francs. In July the shares were trading at 12.8 francs.
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Walt Disney
Euro Disney
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