Disneyland Paris Reports 45 Percent Profit Drop Due to Decades-Old Agreement

Disneyland Paris experienced a significant 45.3% decline in net profit to $98.2 million for the fiscal year ending September 30, 2025, largely due to longstanding debt and an old public-private partnership agreement with the French government. Unlike Disney's wholly owned American parks, Disneyland Paris was financed through $1.8 billion in bank loans and additional loans from Disney, with ownership split between Disney (49%) and public shareholders, complicating further investment. The park's early financial struggles were exacerbated by cultural differences, high ticket prices, and economic recessions, including the shelving of a second park project until 2002, which added nearly $200 million in debt. Disney took full control of the resort in 2014 and refinanced its debt, but attendance declines from 2017 onward, coupled with a $213 million termination fee due in 2027, have continued to pressure profits. Despite a $2.1 billion investment in expansions and new attractions, Disneyland Paris faces stiff competition from the upcoming Universal Studios park in the UK and must innovate to maintain visitor appeal. Analysts remain cautiously optimistic but emphasize that overcoming these financial challenges will require ongoing improvements in guest experiences and operational strategies.