Euro Disney Cuts Loss, Operating Costs

Euro Disney said Tuesday that it cut its losses sharply in the final three months of 1994, attracting more visitors to its Disneyland theme park outside Paris and cutting operating costs.

The company reported a net loss of $20.79 million for its fiscal first quarter ended Dec. 31, compared to a restated loss of $93.66 million for the year-earlier quarter.

“Although we still have a lot of work to do, we are very encouraged by these results,” Chairman Philippe Bourguignon said in a statement.

Operating revenue rose to $162.9 million from $157.9 million.

The news sent Euro Disney shares sharply higher on the Paris stock exchange, where it rose 8.05 cents to $1.98.

Euro Disney said attendance at the theme park and occupancy at its hotels rose, but the gains were largely offset by lower hotel prices compared to the year-earlier period.

The results appear to show a gradual improvement at the company, which is 49%-owned by Walt Disney Co., after two years of disastrous losses and predictions that the American-style theme park was bound to fail in Europe.

For the year ended Sept. 30, Euro Disney narrowed its losses to $343.4 million from $1.01 billion the previous year.

It restructured its heavy $4.01-billion bank debt last year, brought in new capital and announced cuts in entry ticket prices beginning in April and new attractions aimed at boosting attendance.