Major attractions operator Merlin Entertainments has issued a performance update for the 40 weeks ended October 6, including the major summer trading period of July and August.
The company reports a 4.7 per cent group organic revenue growth in the year to date, mainly from new business. Revenue at resort theme parks grew by 9 per cent; its Legoland parks showed revenue up 6.4 per cent given a full-year contribution from Legoland Japan; its new Midway attractions however showed no growth and the company expects a decline until the full effects of fresh openings are felt later in the year.
Two new brands have been launched, Peppa Pig World of Play in Shanghai, China and The Bear Grylls Adventure in Birmingham, UK.
Said Nick Varney, CEO: “We have opened a record 644 rooms, and six new Midway attractions which has resulted in organic revenue growth of 4.7 per cent. Continued strong guest demand for our themed accommodation offering and the ongoing trend towards short breaks has driven 27.7 per cent growth in accommodation revenue.
“The impact of terror attacks which adversely affected performance from early 2017 has started to abate and we have seen early signs of recovery in the London tourism market over the summer.”
He added: “The cost environment remains challenging, with tighter labour markets in many parts of the world adding to the pressures resulting from legislative changes such as the national living wage in the UK. Our productivity agenda remains a key area of focus and it is testament to our teams that, despite these cost pressures, we have continued to deliver excellent levels of guest satisfaction overall.”
The company operates 120 attractions, 18 hotels and six holiday villages in 18 countries. It has 65m visitors annually and employs 29,000 people. It had revenues of £1.59bn in 2017. Its portfolio includes Madame Tussauds, Alton Towers, Gardaland in Italy, Heide Park in Germany, the London Eye, Sea Life, The Dungeons, and eight Legoland parks.
