Not enough people are coming to see Mickey and Minnie

The loss by the European sector of the Disney empire, for the year ending in September, was below analyst forecasts.

But it was up on the loss of 33.1m euros a year ago, as visitor numbers to the park at the Marne La Vallee region near Paris dropped.

EuroDisney is continuing to negotiate with creditor banks over its debts.

'Acceptable resolution'

Early in November the company won a six month moratorium on its debt payments, which will expire in March 2004.

EuroDisney said it would not have been able to meet all its debt obligations without such an agreement.

A EuroDisney spokesman said: "The company's management believe it will allow time for the parties to develop a mutually acceptable resolution to... future financing needs."

The company said overall visitor numbers totalled 12.4 million people against 13.1 million a year ago - the operator opened the Walt Disney Studios beside the original Magic Kingdom in March 2002.

Saudi prince

Sales fell 2.1% to 1.05bn euros from 1.08bn in the same period in 2002, due to a prolonged drop in European travel and tourism, strikes, and slow economic growth.

EuroDisney is 39 % owned by the Walt Disney Corporation and 17% by Saudi billionaire prince Al-Walid.

Losses before exceptional items came in at 67.9m euros, compared to 4.9m euros profit a year earlier.

As well as the French theme park, Walt Disney also owns Florida's Disney World, Disneyland in California, and an attraction in Tokyo.