BUSINESS HK Disneyland records net loss of over 13 mln USD due to social unrest last year

BUSINESS

HK Disneyland records net loss of over 13 mln USD due to social unrest last year

Xinhua

10:50, March 17, 2020

HONG KONG, March 16 (Xinhua) -- The net loss of Hong Kong Disneyland Resort (HKDL) for fiscal year 2019, ending September last year, increased to 105 million Hong Kong dollars (13.52 million U.S. dollars), up 94 percent from the previous year, the Hong Kong Disneyland Resort said here Monday.

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Photo: VCG

It's the theme park's fifth year of net loss since 2015. The managing director of HKDL Stephanie Young attributed the net loss to social unrest which last over the second half of 2019.

"As Hong Kong's tourism industry faced significant headwinds last year due to the social unrest, with visitor arrivals dropping considerably, our performance during the fourth quarter was also adversely affected like many other communities," Young said at a online press conference.

According to HKDL, due to the impact of fourth quarter starting from July last year, earnings before interest, taxes, depreciation and amortization for the full fiscal year was down 17 percent to 1.1 billion Hong Kong dollars (141.66 million U.S. dollars), resulting in a net loss of 105 million Hong Kong dollars.

And between October 2018 and September 2019, the annual revenue reached 6 billion Hong Kong dollars (772.72 million U.S. dollars), comparable to that in fiscal year 2018.

"We performed quite well for the first nine months for the fiscal year as we saw revenue up by 11 percent during this period," Young said, adding that the attendance grew by 5 percent and hotel occupancy increased by 8 percentage points year-on-year between October 2018 and June 2019.

Together with social unrest, the outbreak of coronavirus also had a severe impact on HKDL. The theme park closed temporally on Jan. 26.

"We have full confidence in running our business, but there's a lot uncertainties and we're facing a very challenging time," Young said.

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