Hong Kong Disneyland: Fiscal 2016 Net Loss Widens to HK$171 Million
February 20 2017 - 3:20AM
Dow Jones News
By Chester Yung
HONG KONG--Hong Kong's Disney theme park on Monday posted a net
loss of 171 million Hong Kong dollars (US$22 million) for the last
fiscal year, widening from a net loss of HK$148 million a year
earlier, partly due to lower attendance figures amid weakness in
the tourism sector.
The weaker performance for the fiscal year ended September 2016
comes at a tough time for the theme park--the smallest of all
Disney theme parks in the world--amid the intensifying competition
for visitors after the opening of the much larger Shanghai
Disneyland in June last year.
Hong Kong Disneyland, in which the city's government has a 53%
stake, recorded attendance of 6.1 million people for fiscal 2016,
down from of 6.8 million a year earlier. Walt Disney Co. (DIS) owns
the remaining stake in the park.
It hasn't been a happy time for what is known as the happiest
place on earth. Hong Kong Disneyland has been suffering from
declining attendance and weak financial results in recent years as
China's economic slowdown hurt Hong Kong's tourism market.
In a bid to revive the Hong Kong theme park, Walt Disney last
November unveiled plans for a US$1.4 billion expansion project for
its smallest park.
New attractions are set to open from 2018 to 2023, including
"Frozen" and Marvel Comics-themed areas, a larger, remodeled castle
and a new entertainment venue. The total number of attractions
would rise to more than 130 from 110 once the upgrade is complete,
the park said. The expansion is subject to approval from Hong
Kong's legislature.
Write to Chester Yung at chester.yung@wsj.com
(END) Dow Jones Newswires
February 20, 2017 03:05 ET (08:05 GMT)
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