Disneyland Paris Posts a Profit for the First Time in More Than a Decade
According to Formula Money, recent account filings have shown that Disneyland Paris has returned to a profit last year. With a boost in attendance and guest spending, revenue increased almost 13% to a record £1.5bn ($2bn).
This is a significant turn for Disneyland Paris, as they historically have had a difficult time turning a profit since the opening in 1992. The turn in the tide began in 2012 when Disney provided £1.1bn ($1.46bn) to repay loan debts and would go on to take complete ownership five years later in a £1.80/share offer ($2.38/share).
According to the annual results of Euro Disney Associés, the resort’s main operating company, revenue from theme park activities rose 14.5% to £871m ($1.15bn) in FY18, while the additional £387.5m ($513m) came from a subsidiary that operates five of the hotels and 10 acre on-site entertainment district.
As the largest employer in the Paris region, staff numbers increased 4.3% to 16,368 last year. The rise in revenue helped to offset the 7.2% increase in costs largely due to the staff pay increasing £65m ($86m) to a record £627m ($830m). This left the company with an £18m ($23.8m) operating profit, up from a £43m ($57m) loss in 2017.
In 2018, the company invested £170m ($225m) as it renovated the resort’s attractions and hotels for it’s 25th anniversary. Last year, Bob Iger announced the company will invest another £1.8bn ($2.4bn), which will bring additional lands inspired by Star Wars, Marvel and Frozen. The expansion is set to bring more than 1,000 jobs to the resort.