Euro Disney has to retract statement on losses

EURO DISNEY yesterday had to issue a retraction of earlier statements by a spokesman confirming that the company would make a full-year loss of Fr1.8bn to Fr2bn ( pounds 226m), writes Gail Counsell.

The company said it had made no forecast for the full year and it had nothing further to add to the announcement it made on 8 July. That said Euro Disney expected to incur a loss during its peak fiscal fourth quarter, which runs from July to September and would make 'significant losses' for the whole year.

In the third quarter, from April to June, the company lost Fr500m, on top of first half losses of Fr1.08bn.

Earlier a spokesman for the pounds 2.2bn theme park near Paris had reportedly said that analysts' expectations of a Fr2bn loss this year were 'reasonable'.

In the later statement, Euro Disney said it was 'not commenting on analysts' estimates'.

The theme park has been hit by the reluctance of visitors to spend money at its hotels and souvenir shops. However, most analysts believe that the continuing downturn in the French economy and the relatively high value of the franc compared with other currencies, especially sterling, means revenues will continue depressed for some time.