Attractions industry news

02 Aug 2018

Revenue up but profit down as Merlin reports half year results

The first half of the year has been a mixed bag for Merlin, with the operator reporting revenue increases of £24m (US$31.4m, €27m) for the first half of the year, but a decline in operating profits, which were down £10m (US$13m, €11.3m).

For the 26 weeks ended 30 June, revenue was £709m (US$927m, €798m), up from £685m (US$895.7m, €771m) for the same period in 2017, representing a 3.5 per cent rise.

Operating profits took a significant hit, down to £63m (US$82.4m, €71m) – a 14.3 per cent decline. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also dropped slightly, down 1.3 per cent to £143m (US$187m, €161m), compared to £144m (US$188.3m, €162m) for the period last year.

According to Merlin, the decline in profit was due primarily to adverse foreign exchange movements and a higher depreciation charge due to new business development.

"In the existing estate we have been pleased with trading in the resort theme parks operating group," said Merlin CEO Nick Varney.

"We've had strong customer reception to our product investments and we continue to see the anticipated recovery at Alton Towers. The business has also undoubtedly benefited from the recent warm weather in Northern Europe which due to the natural balance of our portfolio has conversely had an adverse impact on our indoor Midway attractions.

"Having so far traded in line with expectations we are now entering our peak season, where we generate the majority of our annual profit. With many exciting new initiatives and launches to come in the future, we remain confident in our long term prospects."

Merlin has a number of developments currently in progress at its visitor attractions worldwide, including new Midway attractions including Justice League at Madame Tussauds Orlando and Sydney; the Lego City: Deep City Adventure at Legoland California; the Wickerman wooden coaster at Alton Towers; and the Peppa Pig additions at both Heide Park and Gardaland.

Merlin is also continuing its initiative to turn its theme parks into destination resorts, with a total of 644 new rooms opening in 2018. These include the 252-bedroom hotel at Legoland Japan, the 250-bedroom Legoland California Castle Hotel, and the 142 bedroom Pirate Island Hotel at Legoland Deutschland.

Further attractions opening this year for the operator include Sea Life at Legoland Japan, the Legoland Discovery Centre and Bear Grylls Adventure in Birmingham, Peppa Pig World of Play in Shanghai and Little Big City in Beijing. Legoland New York is also making progress, and is expected to open in 2020.

<< Back

News powered by attractionsmanagement.com

Kengo Kuma’s V&A Dundee: Drone footage shows finished building ahead of opening

The Kengo Kuma-designed V&A Museum of Design Dundee, Scotland’s first dedicated design museum, is set to open its doors in less than a month. [more...]

Indian Hotels Company to introduce Vivanta brand to UK

The Indian Hotels Company (IHC) will open and operate a Vivanta-branded luxury hotel at Heathrow Airport in London. [more...]

Non-EU travellers driving strong growth in UK's inbound tourism

Strong growth from a mix of overseas visitor markets made 2017 a "record year" for inbound tourism in the UK. [more...]

Royal Society launches Places of Science small museums fund

The Royal Society has announced “Places of Science”, a new funding scheme for small museums in Britain. [more...]

Historic properties lead the way as visitors flock to English attractions

Historic properties and attractions across England experienced significant growth in visitor numbers in 2017. [more...]

AECOM Economics transferring European operation to US, Middle East and Asia

AECOM – the multinational engineering firm that provides design, consulting, construction, and management services to clients all over the world – has dissolved the EMEA division of its Economics arm. [more...]

In brief:

Revenue up but profit down as Merlin reports half year results [more...]
SPPARC’s London railway arches renovation to ‘weave historic fabric with contemporary architecture’ @SPPARCArc [more...]
Hard Brexit spells 'doomsday outcome' for Ireland, says tourism body [more...]
London Cartoon Museum’s new home to be designed by Sam Jacob Studio @SamJacobStudio @Cartoonmuseumuk @oliver_preston [more...]
Spending on leisure boosted by "record level' of consumer confidence @Deloitte [more...]
New @Tate_StIves by @JamieFobertArch in the running for 2018 @RIBA #StirlingPrize [more...]
British Museum seeks to acquire 'Trump Baby' for dissent exhibition [more...]
'Jurassic' Jeff Goldblum installation appears on London's Southbank @NOWTV [more...]
Disability and accessibility over heritage, says Archbishop of Canterbury @JustinWelby [more...]
More news from attractionsmanagement.com>>
<< Back