01 Aug 2014
Multiple attraction launches in first half of 2014 spur on Merlin's profit numbers
BY Tom Anstey
Merlin Entertainments has posted its half year results through to 28 June 2014, marking a 10 per cent growth in operating profit compared to the same period last year.
Operating profits for the attractions operator increased to £71m (US$119.8m, €89.5m) for the first half of the year, compared to £64m (£108m, €80.7m) profit from the same period in 2013.
Visitor numbers also saw an increase for the first six months of the year, with a rise of 6.6 per cent – from 25.8 million in 2013 to 27.5 million in 2014.
Merlin has made good progress against its strategic growth drivers so far this year, with the successful launches of Alton Towers’ CBeebies Land
furthering the theme park's pre-school offering, while the debuts of Legends of Chima at Legoland California and the new Flight of the Demons winged coaster at Heide Park were both well received upon opening.
Five midway attractions have been opened by Merlin so far this year, with Sea Life Charlotte, North Carolina, Madame Tussauds and Dungeon in San Francisco, Madame Tussauds in Beijing
and a Legoland Discovery Centre in Boston, all helping to drive growth for the attractions giant, which now has more than 100 locations worldwide.
While the Midway Attractions Operating Group saw revenues grow by 5.6 per cent, trading has been affected by a range of factors. Firstly, political disruption in Bangkok has had a significant impact on the Siam Ocean World aquarium and Madame Tussauds situated in the city. Secondly, business was impacted by severe cold weather in North America in the earlier part of the period. Not only did the cold weather impact trading performance at the time but subsequently schools have had to reduce planned holidays to meet federal laws requiring minimum school opening days.
“Merlin continues to make significant progress through the first half of 2014,” said CEO Nick Varney.
“Against a backdrop of ongoing currency headwinds, we have delivered further growth in visitor numbers, revenues and profits, with continued delivery from our existing estate, underpinned by the ongoing roll out of our unique portfolio of international leisure brands.
“The first half performance was supported by the more favourable weather in Northern Europe and a particularly strong Legoland performance, which was fuelled partly by effective marketing around the internationally successful Lego movie. This offset a relatively weaker performance by the Midway Attractions Operating Group which was affected by a number of external events.”
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