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NEWS
Revenue up but profit down as Merlin reports half year results
POSTED 02 Aug 2018 . BY Tom Anstey
With many exciting new initiatives and launches to come in the future, we remain confident in our long term prospects
– Nick Varney
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.
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Jobs . News . Products . Magazine
NEWS
Revenue up but profit down as Merlin reports half year results
POSTED 02 Aug 2018 . BY Tom Anstey
With many exciting new initiatives and launches to come in the future, we remain confident in our long term prospects
– Nick Varney
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.
MORE NEWS
New “Hilltop Gallery” in China’s Yanshan mountains completes construction
Construction has recently completed on the 2,600 sq m Hilltop Gallery – also known as the Phoenix Valley Summit Art Centre – in China's Hebei province.
Stockholm’s Nationalmuseum reopens following refurbishment
Larger exhibition areas across three floors will showcase more than 5,000 artworks including paintings, sculpture, and photography at the reopened Nationalmuseum in Stockholm, Sweden following a revamp.
Netflix's Black Mirror to give users a choice of stories: Will attractions follow?
The upcoming season of the Emmy-winning science-fiction series Black Mirror, due for release in December, will have an episode that allows users to choose their own story.
V&A’s Photography Centre opens as part of its FuturePlan initiative
London’s V&A Museum has opened its new Photography Centre – a dedicated space showing works including the Royal Photographic Society collection, which it acquired in 2017 from the National Science and Media Museum in Bradford, Yorkshire.
+ More news   
LATEST JOBS
Global Marketing Executive
Merlin Entertainments Group
Salary: Competitive
Job location: London, UK
Operations Manager
Legoland
Salary: Competitive
Job location: Columbus, OH, USA
Aquarium Commercial Supervisor
Sea Life
Salary: Competitive
Job location: Carlsbad, CA, USA
Digital Marketing Executive
Legoland
Salary: Competitive
Job location: Windsor, UK
Digital Business Analyst
Merlin Entertainments Group
Salary: Competitive
Job location: London, UK
Curator
Sea Life
Salary: Competitive
Job location: North Carolina, USA
+ More jobs  
 


ADVERTISE . CONTACT US

Leisure Media, Portmill House, Portmill Lane,
Hitchin, Hertfordshire SG5 1DJ Tel: +44 (0)1462 431385

©Cybertrek 2018

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
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ATTRACTIONS HANDBOOK
PRINT SUBSCRIPTIONS
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