Shareholders Meeting Trip part 2: F1, 3rd gate and numbers!
After a good night rest it was time for the General Shareholders Meeting. Now, there where a lot of numbers they talked about. Especially those that gone up; more visitors, more rooms booked, more spending per person, more cash flow, and so on. Only during the Questions and Answer session did we get to hear some other things and issue that some shareholders had. Will shareholders ever get dividends, what will happen when Euro Disney S.C.A. Has to start paying back its Hughes depths in 2011 but Karl Holz always had an answer ready, even if this answer was always the same, that they made a big positive result, that they are on the right track and that this is the track Disney management is going to follow for the future.
Even avoiding the questions a little, he is right though. The improvement is impressive with a growth of 12% in 2007 (if you want precise numbers make sure to check the annual report) and an even more impressive 1st quarter of 2008 result where there is a 20% improvement in comparison with the 2007 first quarter. He is right saying it is the right path, and I do understand the answers too. What management wants to show their cards open on the table, even to the shareholders, when the road the take could change again at any time. For now shareholders have to give their faith to the team that has given them result this year. The Euro Disney S.C.A. Is a delicate company, almost breakable, and therefor needs all the attention and dedication it is getting from the team. Let’s hope next year the numbers will be even more impressive.
But, to us fans, other things are of bigger importance! What about the future for the parks; new rides, attractions, show, etc… We want to know. Well, we had a good run with Crush, Cars, the new parade and Tower of Terror, but those hoping to hear something on the shareholders meeting regarding more new attractions did only get the new coming Stitch attraction presented. While Karl Holz did talk about the importance of adding new experiences into the parks to keep guest happy and to keep them want to return again soon, he didn’t say anything about upcoming attractions. With no news this time around I guess we will be in for another wait.
Thinking about this, with all the great attractions added and the fantastic 15th anniversary celebration that took care of the fantastic results, what will happen once people know the new rides and the celebration is over? Will they be able to trigger more record numbers as they did in 2007 and 1st quarter of 2008? We will have to wait and see.
Or maybe they just don’t want to give away their plans for the future and are imagineers already working hard on some new Disney magic.
One of the shareholders had a very interesting question. What about the contractual commitments regarding the development of the lands, including the 3rd gate that goes with it. This gate needs to be in place by 2017, otherwise they will loose the right to use the land. Karl Horlz was very clear on this! There are no plans for a third park anytime soon, nothing is on the drawing board. Although this was the answer to the question, it isn’t clear what will happen with the contractual commitments. But one can speculate of course; loosing the right to use the land is not an option. Disney would never want to see the right go out of their hands. Imagine third parties would be building some horrible hotel on it (just to name one example). Xavier (a friend also at the meeting) came up with a possible solution. Disney will ask to extend the right, and most probably would get the approval too. So, lets stop dreaming about a third gate anytime soon… Its not going to happen.
But do you remember the F1 rumor. Now that is still alive. Mr. Holz said that there have been meetings between the parties and interest is big. The right location and the right infrastructure is there, so a F1 park build and operated by a third company on Disney property is still hot, but nothing is definitive yet.
That was it for the meeting. Most people might consider it a boring thing to do but I enjoy this (even if I secretly hoped to get some news for future expansions that didn’t come)
Next; Shareholders Meeting Trip part 3: Ghosts and Ghouls
Picture copyrights Disney