A rise in the number of visitors thronging the Walt Disney Co. (DIS) theme park in Hong Kong acted as a lever to combat loss to a certain extent. Hong Kong Disneyland still runs at a loss though the amount shriveled to HK$718 million ($92.3 million) in fiscal 2010 from HK$1,315 million ($169.1 million) in fiscal 2009.
The park earned earnings before interest, taxes, depreciation and amortization of HK$221 million ($28.4 million). Hotel occupancy increased 12 percentage points to 82%.
The number of guests at the entertainment venue mounted 13% for the year to 5.2 million spurring a sales growth of 19% climbing to HK$3 billion ($0.38 billion). Wealth created in the world’s fastest-growing major economy, mainland China, encouraged outbound tourism.
The influx of guests from the mainland inflated the arrival numbers, at the theme park, to 42% from 36% in 2009. Other guests from around the world increased to 25% compared with 23% a year ago. However, visits from locals proved to be a dampener falling to 33% from 41%.
The company is going the extra mile to lure visitors to its park by providing amusement experience for entire families. With this aim in mind, the Hong Kong Disneyland hopes to include three new attractions in its entertainment mix scheduled to open in the next three years.
The first initiative, based on the highly acclaimed “Toy Story” series of movies, especially aimed at kids, is set to open in 2011. This will be followed by “Grizzly Gulch” and “Mystic Mountain” in 2014.
These new attractions at the theme park will provide family-oriented entertainment. The company, investing a lot of hope in new projects, aims to turn this loss-making Disney Park into a profit earner.
The Hong Kong amusement park is a joint venture between Walt Disney and the Hong Kong government with the latter owning about 53% of the park.
Walt Disney is one of the world’s leading diversified entertainment companies. Moreover, the company commands a formidable portfolio of globally recognized brands, such as the namesake brand Walt Disney, ABC, ESPN, Marvel Entertainment and Touchstone Pictures. These renowned brands offer a strong competitive edge to the company and bolster its well-established position in the market against major players like News Corp. (NWS) and Time Warner Inc. (TWX).
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