EURO Disney almost halved its losses for the first quarter of the 1995 1996 fiscal year after attracting more visitors to its amusement park outside Paris.
Euro Disney said a net loss of 57 million francs (£7.2 million) for the October December quarter, compared with a loss of 109 million francs in the year earlier period. A company spokesman blamed seasonal factors for the loss and said Euro Disney had predicted the result.
Analysts called the results slightly better than expected and said they reflected the success of Euro Disney's strategy of price cuts which have drawn an increasing number of visitors in recent months.
"It's still a loss, but sales revenue growth of 17 per cent is better than I expected," Mr Nigel Reed, analyst with Paribas Capital Markets in London, said. "It shows that the strategy of cutting admission prices is continuing to pay off as visitors see better value." The company's shares were up 2.2 per cent on the news, trading 0.25 francs higher at 11.80 francs by midday.
The company, 39 per cent owned by Walt Disney, said operating revenues at the Disneyland Paris theme park totalled one billion francs for the first quarter of its 1995 96 fiscal year, compared with 854 million francs a year ago.
This revenue growth was driven by strong increases in park attendance and hotel occupancy due, in part, to the reduction in park entry prices implemented in April 1995," Euro Disney said in a statement.
Meanwhile, Walt Disney said it had record revenues and profits for the first quarter of its fiscal year as its films continued to do well at the box office and in home video sales and rentals.
The entertainment giant, which also enjoyed record attendance at its two major US theme parks, said its net income for the three months ended December 31st rose 3 per cent to $496 million (£310 million), or 93 cents a share, from $482 million, or 91 cents a share.
"I am gratified by the record" results registered by all business segments during a period in which we were challenged with difficult comparisons stemming from our great success in the same quarter a year ago," chairman and chief executive, Mr" Michael D. Eisner said in a statement.
Disney said its profits would, have jumped by II per cent if it excluded a $55 million gain in the prior year's quarter from the sale of part of the company's stake in Euro Disney.
Disney said its investment in Euro Disney resulted in a loss of $2,1 million, reflecting the company's equity share of Euro Disney's operating results.
The company also said its first quarter revenue and incomes reflected the success of the films Toy Story and Father of the Bride Part II in the US and the success of Pocahontas, The Santa Clause and While You Were Sleeping overseas.
Disneys' stock gained 12.5 cents to $60.625 in morning trading on the New York Stock Exchange.
