Business News

Posted: Wed., Jan. 21, 1998, 11:00pm PT

Euro Disney's earnings leap

16.6% rise in revenues sparks stock upswing

PARIS -- Euro Disney reported a surprisingly strong 16.6% rise in revenues for the first quarter of its 1997-98 year, sparking a rise in the theme park operator's stock.

The stock was up 9¢, or 7.24%, at 8.15 francs ($1.33) in late trading in a broadly weaker market.

Euro Disney said its revenues rose to 1.30 billion francs ($212.1 million) in the October-December quarter from 1.12 billion francs ($182.7 million) in the year-earlier period, reflecting higher attendance at its Disneyland Paris park, higher spending-per-visitor and a rise in hotel occupancy.

"The sales figure is good, better than my forecasts," Paribas analyst Nigel Reed said. He remains a seller of the stock but said he may increase his earnings estimates.

Next year, Euro Disney will start paying management fees and royalties to 39% owner Walt Disney Co. Reed estimates they will be $39.2 million next year.

Contact the Variety newsroom at news@variety.com

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