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Hong Kong Reports a Profit, if you don’t include a bunch of costs

The Disney company appears desperate to make their Hong Kong Disneyland Resort appear to be a good decision. They’re now reporting that the park would be profitable if they didn’t include taxes, loan interest, amortization, and depreciation. So basically, they’re still losing money. Great.

Hong Kong Disneyland is, hopefully, the last example of Disney deciding to open small and hope the crowds come to justify expansion. The Tokyo Disney Sea model has instead proven to be the winner. Build something that people just can’t stay away from and they won’t.

(via Marketwatch)

3 thoughts on “Hong Kong Reports a Profit, if you don’t include a bunch of costs”

  1. EBITDA can be a perfectly legitimate accounting practice for companies that have long term debt and expect to write down that debt over a long period of time.

    Investments like a theme park are speculative investments for the future and no park is expected to go profitable in one two or even five years.

    Please leave the financial opinions and speculation to the experts, and focus on the news.

  2. Why, why, why! Why could we not get a Disney’s Seas instead of California Adventure. Oh, yeah, because Ei$ner did not have anything to do with DS and everything to do with CA.

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