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HKDL's net loss narrowed to HK$1.32 billion

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  • News HKDL's net loss narrowed to HK$1.32 billion

    According to latest news from Wall Street Journal:

    HK Disneyland Fiscal Year Loss Narrows To HK$1.32 Bln

    Hong Kong Disneyland's net loss for the year ended Oct. 3 narrowed to HK$1.32 billion from HK$1.57 billion due to savings in financial and operating costs, the government said.

    Revenue fell 1% to HK$2.54 billion from HK$2.57 billion as the outbreak of swine flu affected attendance and hotel occupancy, the government said in a paper posted Tuesday on the Web site of the Legislative Council. The legislature will discuss the paper Monday.

    The park's hotel-occupancy rate fell to 70% during the period, from 78% a year earlier, while attendance rose 2% to 4.6 million from 4.5 million, according to the paper. The park's fiscal year ends on the Saturday closest to Sep. 30.

    Hong Kong Disneyland has been plagued by weak attendance and disappointing financial returns since it opened in September 2005. Critics have pointed to its size--it is the smallest of Disney's theme parks--and a lack of attractions appealing to its target market of mainland Chinese tourists.

    In July, Hong Kong's legislature approved the financial arrangements for a deal between Walt Disney Co. (DIS) and Hong Kong's government to expand Hong Kong Disneyland. The project is to be completed in phases through mid-2014.

    The theme park is 52%-owned by the Hong Kong government and 48% by Walt Disney Co.
    Source : Wall Street Journal

  • #2
    Re: HKDL's net loss narrowed to HK$1.32 billion

    Hong Kong Disneyland lifts lid on string of financial losses



    HONG KONG, Jan 19 (Reuters) - Disney's troubled Hong Kong Disneyland theme park made a net loss of HK$1.315 billion last year while attracting 4.6 million visitors, in its first major admission of its financial performance since opening in 2005.

    STOCKS | GLOBAL MARKETS

    Since opening to great fanfare in 2005, Disney's first magic kingdom in China has struggled to attract the expected flood of visitors from mainland China, although its performance was difficult to gauge given Disney's initial refusal to fully disclose key results and attendance figures.

    In a legislative paper by Hong Kong's Tourism Commission to local lawmakers, however, it said Hong Kong Disneyland made a net loss of HK$1.315 billion ($169.4 million) in 2009, partly because of the "unfavourable impact" of the H1N1 swine flu outbreak.

    The paper added that the park made a net loss of HK$1.574 billion in 2008.

    "We would like to point out that HKD is a long-term asset that grows over time and it is still in its early years of development," the paper said while noting the park's continued cost containment efforts.

    The paper added that Hong Kong Disneyland had brought Hong Kong well over HK$30 billion of economic benefit over the past four years.

    The park's attendance in 2009 was 4.6 million, 2 percent more than 2008, generating revenues of HK$2.541 billion.

    The theme park, Disney's smallest, is now undergoing a $468 million expansion aimed at bolstering its competitiveness with a rival Disneyland that is scheduled to open in Shanghai.

    As part of the expansion deal, partly financed by the Hong Kong government, Disney pledged to boost the transparency of its operations by releasing annual operating and financial results.

    With attendance falling short of targets, the government has been seeking ways to boost the number of visitors in the long term, given the threat from a rival Disney theme park planned for Shanghai in the next five or six years.
    Source : Reuters

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    • #3
      Re: HKDL's net loss narrowed to HK$1.32 billion

      Not great news to hear, but not surprising I guess. At least (regardless of what you think of the whole plan) there is the expansion to hopefully boost attendance in the longer term.
      sigpic

      "We're not trying to entertain the critics ... I'll take my chances with the public." -
      Walt Disney

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      • #4
        Re: HKDL's net loss narrowed to HK$1.32 billion

        ORDDU: Until those in charge of Hong Kong Disneyland decide to add some major attractions to the park, as opposed to a few 'side dish' attractions, it will continue to fail. Mystic Manor should be the first thing they add--not the Toy Story kiddie land.

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        • #5
          Re: HKDL's net loss narrowed to HK$1.32 billion

          The only good news I read from the local paper that South China Morning Post is that the park is going to be profitable around 2015. That's when all 3 attractions (Mystic Manor, Toy Story Land and Grizzly Gulch) opens up. Though its gonna have competition with Universal Studios Singapore when that opens up later this year.

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          • #6
            Re: HKDL's net loss narrowed to HK$1.32 billion

            By 2015 it will not only be competing against Universal Studios Singapore, but also Shanghai Disneyland and Universal Studios Seoul, the biggest in the world.

            Not to mention Tokyo Disneyland and Universal Studios Osaka, which already exists.

            And it did not really say "profitable" by 2015. From what I read, it said "break even".
            Jul 1992: Disneyland Paris
            Apr 2006: Hong Kong Disneyland
            Jul 2010: Disneyland and Disney's California Adventure
            Mar 2011: Hong Kong Disneyland
            Jul 2013: Tokyo Disneyland and Tokyo DisneySea
            Sep 2013: Hong Kong Disneyland
            Jul 2014: Disney California Adventure

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            • #7
              Re: HKDL's net loss narrowed to HK$1.32 billion

              ^Which is another reason why they've got to push for further additions right now. There's no use waiting for Mystic Manor to be open for them to then consider the approving the next phase - they should be instead ready to start construction on the "next big thing" there and then.
              sigpic

              "We're not trying to entertain the critics ... I'll take my chances with the public." -
              Walt Disney

              Comment


              • #8
                Re: HKDL's net loss narrowed to HK$1.32 billion

                I'm sure once their expansion is done and all the new attractions are up and running the attendance will get way better. It will also make people stay in the park longer so that's a good thing, they could be spending more money. Hong Kong Disneyland will get back up onto its feet soon.

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                • #9
                  Re: HKDL's net loss narrowed to HK$1.32 billion

                  From the beginning this was a poorly proposed expansion. Mystic manor may be the coolest thing on earth but hkdl can't afford to open just 2 proper rides and a few time wasters. OPark has a much attractive expansion plan, just go to their website and see it. HKDL needs more!

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                  • #10
                    Re: HKDL's net loss narrowed to HK$1.32 billion

                    I still stick by the opinion that they should build more things for people to do at night, like a theatre, this will encourage people to stay longer.

                    Just read in Apple Daily that The Venetian may close its Cirque du Soleil show by April, because it is doing badly financially, sometimes only 40% of the theatre is filled.

                    Maybe HKDL can consider opening its own Cirque show theatre instead.
                    Jul 1992: Disneyland Paris
                    Apr 2006: Hong Kong Disneyland
                    Jul 2010: Disneyland and Disney's California Adventure
                    Mar 2011: Hong Kong Disneyland
                    Jul 2013: Tokyo Disneyland and Tokyo DisneySea
                    Sep 2013: Hong Kong Disneyland
                    Jul 2014: Disney California Adventure

                    Comment


                    • #11
                      Re: HKDL's net loss narrowed to HK$1.32 billion

                      It's a shame, because HKDL is really a charming and cute park. It's small size did surprise me though. Hopefully the expansions will help. Most of it seems really cool. TSL? eh.

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