Euro Disney Investors Hope New Attractions Boost Theme Park's Profits

By Shirley Skeel, Daily Mail, London
Knight Ridder/Tribune Business News

Nov. 3--The Indiana Jones rollercoaster at Disneyland Paris is due to be run in reverse for the Millennium.

Euro Disney, which operates the theme park, promises "sensational thrills''. Investors know the feeling after a year of stomach-churning price swings in the shares.

Now 84 1/2 pence, their prospects lean more on hope than hard facts, after sales rose just 3.5 percent in the year to September. Attendances were flat at 12.5 million.

Luckily the new attraction, Honey I Shrunk the Audience!, boosted spending per head and operating profits rose 12 percent.

But debt repayments and royalties to Walt Disney knocked net profits back 47 percent to UKpound 16 million.

This year Tarzan swings onto the site, which should help, and interest charges will ease after a refinancing.

Investors hope for a fillip from a second park, Disney Studios, opening in 2002. But it still looks too early to climb aboard the shares.
-----

To see more of the Daily Mail and the Financial Mail on Sunday, or to subscribe to the newspaper, go to http://www.financialmail.co.uk

UKpound preceding a numeral refers to the United Kingdom's pound sterling.

(c) 1999, Daily Mail and the Financial Mail on Sunday, London. Distributed by Knight Ridder/Tribune Business News.