Sales push for Disney after €56m loss

EURO Disney has unveiled plans for a marketing campaign across Europe after posting a dismal full-year net loss of 56 million euros.

The campaign, likely to include television advertising, is planned for the end of the year to lure more first-timers to Disneyland Resort Paris and will adapt to the later booking trend.

A spokesman said: “Once they come here they will come back. But we have to convince people to come here first.”

Plans are already underway for another hotel, under the Radisson brand, to open on site in 2005. Building work for the 250-room property starts early next year.

The news comes as the Disneyland Resort Paris operator posted a loss for the year to September 30, and continues to negotiate with lenders to pay off debts of 2.2 billion euros, much of which stem from the original park’s construction.

It has already secured an extension on debt repayments with lenders until next March but reiterated fears it may not be able to pay off debts if a rescue deal is not in place. This could result in the banks demanding debts are repaid faster.

Chairman and chief executive Andrew Lacroix said the marketing campaign and negotiations to refinance debt long-term were key to next year’s success.

The increased 2002/03 full-year loss, up from 33 million euros last year, was blamed on disappointing revenues, higher operating costs due to the new Walt Disney Studios Park,

and higher advertising costs.

Lacroix admitted it had been a difficult year but remained confident the resort’s future was secure. “Our company was not immune to the difficulties all operators experienced and our results reflect this year’s unusual circumstances.”

The company reported a 2.1% fall in revenues for the year, which it said reflected a travel downturn, strikes and work stoppages in France, and

challenging economic conditions in key markets. Visitors were down from 13.1 million in 2002 to 12.4 million this year. Hotel occupancy fell from 88.2% to 85.1%.

Euro Disney is 39.1% owned by the Walt Disney Travel Company and 16.3% owned by Saudi billionaire Prince Alwaleed bin Talal.