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Results May Give Euro Disney Investors a Thrill : Earnings: The park could report its first-ever quarterly profit this week. Analysts cite financial restructuring, new Space Mountain ride.

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From Bloomberg Business News

Euro Disney shareholders have good reason to look for thrills and excitement this week when the theme park outside Paris reports its fiscal third-quarter results.

That’s because the quarter, which ended June 30, could well be the first since the park opened in April, 1992, in which it earned a profit.

The park is benefiting from the introduction of its $120-million Space Mountain ride, entry fees that have been cut by 20%, and a year-old financial restructuring waiving interest payments and royalties.

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The company has not made any promise of a profit for the quarter, and executives there have repeatedly said Euro Disney is aiming for profitability in fiscal 1996, which ends in September, 1996.

Still, there are indications that good news may be close at hand.

According to the Sunday Times of London, analysts including Morgan Stanley believe the third-quarter figures could show a profit of as much as $20 million on the strength of a 20% rise in visitors.

Calls to Euro Disney’s office Sunday were not returned and none of the executives could be reached at home for comment.

Should the quarter be profitable, however, the major package of financial measures put in place a year ago to reduce expenses will probably be the major factor.

In June, 1994, Euro Disney’s bankers agreed to give the money-losing enterprise a vacation from interest payments, deferring further payments until 1997. At the same time, Walt Disney Co., which now owns around 40% of the park, agreed to eliminate management fees for three years. The park also found an equity investor in Saudi prince Al Waleed ibn Talal ibn Abdulaziz al Saud.

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