Upbeat 2018 results for Merlin Entertainments provide impetus for further growth
POSTED 01 Mar 2019 . BY Andy Knaggs
We continue to seek to mitigate ongoing external cost pressures – Nick Varney
European attractions operator Merlin Entertainments has reported growth in a number of areas of its business in 2018, including record visitor numbers.
Some 67 million people visited Merlin’s attractions during the year, up from 66 million in the year to December 2017. The operator reports a profit before tax of £285m (US$377m, €332m), an increase of 4.9 per cent on 2017, with its operating free cash flow increasing by 9.7 per cent to £345m (US$457m, €402m).
Across different sectors of the business, there was an organic revenue increase of 6.4 per cent for Legoland, driven by the opening of more than 640 accommodation rooms, which offset a broadly flat like for like performance. Merlin said that a further 372 rooms are expected to open in 2019 at locations such as Alton Towers and the Magic Hotel at Gardaland. Resort Theme Parks organic revenue grew by 9.1 per cent, through product investment, favourable weather and a strong Halloween, while Midway Attractions saw its organic revenue grow by 1.1 per cent on the year.
The preliminary results drew attention to the potential for continued growth, with continued progress towards opening Legoland New York in 2020, an agreement to open another Legoland park in Korea by 2022, the launch of two new Midway brands in Peppa Pig World and The Bear Grylls Adventure, and a "productivity agenda" which is expected to yield up to £35m (US$46m, €40m) of annual savings by 2022.
Nick Varney, chief executive officer of Merlin Entertainments, commented: "2018 saw improved momentum across most of our businesses, reflecting the strength of our diversified portfolio and geographic spread. Resort Theme Parks benefited from successful product investment such as Wicker Man at Alton Towers; Legoland Parks’ growth was driven by record levels of accommodation openings; and, in addition to the contribution of seven new attractions, Midway saw improving trends in London.
"We continue to seek to mitigate ongoing external cost pressures and expect to deliver up to £35m of annualised savings by 2022 through a number of initiatives. Not only will this help underpin our financial outlook, but it will also better enable our people to deliver what matters most to our guests: fantastic memorable experiences."
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Upbeat 2018 results for Merlin Entertainments provide impetus for further growth
POSTED 01 Mar 2019 . BY Andy Knaggs
We continue to seek to mitigate ongoing external cost pressures – Nick Varney
European attractions operator Merlin Entertainments has reported growth in a number of areas of its business in 2018, including record visitor numbers.
Some 67 million people visited Merlin’s attractions during the year, up from 66 million in the year to December 2017. The operator reports a profit before tax of £285m (US$377m, €332m), an increase of 4.9 per cent on 2017, with its operating free cash flow increasing by 9.7 per cent to £345m (US$457m, €402m).
Across different sectors of the business, there was an organic revenue increase of 6.4 per cent for Legoland, driven by the opening of more than 640 accommodation rooms, which offset a broadly flat like for like performance. Merlin said that a further 372 rooms are expected to open in 2019 at locations such as Alton Towers and the Magic Hotel at Gardaland. Resort Theme Parks organic revenue grew by 9.1 per cent, through product investment, favourable weather and a strong Halloween, while Midway Attractions saw its organic revenue grow by 1.1 per cent on the year.
The preliminary results drew attention to the potential for continued growth, with continued progress towards opening Legoland New York in 2020, an agreement to open another Legoland park in Korea by 2022, the launch of two new Midway brands in Peppa Pig World and The Bear Grylls Adventure, and a "productivity agenda" which is expected to yield up to £35m (US$46m, €40m) of annual savings by 2022.
Nick Varney, chief executive officer of Merlin Entertainments, commented: "2018 saw improved momentum across most of our businesses, reflecting the strength of our diversified portfolio and geographic spread. Resort Theme Parks benefited from successful product investment such as Wicker Man at Alton Towers; Legoland Parks’ growth was driven by record levels of accommodation openings; and, in addition to the contribution of seven new attractions, Midway saw improving trends in London.
"We continue to seek to mitigate ongoing external cost pressures and expect to deliver up to £35m of annualised savings by 2022 through a number of initiatives. Not only will this help underpin our financial outlook, but it will also better enable our people to deliver what matters most to our guests: fantastic memorable experiences."
RELATED STORIES
Legoland Korea given green light after funding agreement POSTED 09 Jan 2019. BY Andy Knaggs Merlin Entertainments is set to open its first Legoland theme park in South Korea, having
entered into a partnership agreement that will draw significant local government funding
and infrastructure support.
Merlin reveals plans to grow Australian portfolio with new attractions POSTED 25 Oct 2018. BY Luke Cloherty A new Legoland Discovery Centre and Dungeons attractions are being planned for
Australia and New Zeland by operator Merlin Entertainments, according to divisional
director Rob Smith.
Merlin plans second Legoland park in China POSTED 19 Sep 2018. BY Luke Cloherty Operator Merlin Entertainments is to bring a second Legoland resort to China – to add to
the one under construction in Shanghai – in Sanya, Hainan Province.
Merlin Entertainments opens first Bear Grylls attraction in Birmingham POSTED 18 Sep 2018. BY Luke Cloherty Celebrity survivalist Bear Grylls’s new £20m ($26.3m, €22.5m) adventure attraction in
Birmingham, England has opened its doors to the public with a promise from Grylls to
bring the “spirit of endeavour” to one destination.
Global luxury hospitality brand, Six Senses, has partnered with longevity healthcare provider,
HUM2N, to launch a clinic at Six Senses London, at The Whiteley.
Premium London health club, KX Chelsea, will imminently unveil its most significant
redevelopment since its launch in 2002 to create an integrated wellness model combining
training, recovery and relaxation.
Researchers in the US have identified an antibody which could greatly reduce the loss of lean
muscle mass in people who are taking weight-loss medications.
Crunch Fitness has announced the launch of Crunch Reform Pilates – its own reformer concept
designed to bring this fast growing, but rather expensive, modality into the mainstream.
As healthcare continues to shift towards prevention, there’s a growing focus on helping
people stay active, independent and feeling good for longer. [more...]
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gathering of the Health & Fitness industry’s most influential leaders. [more...]
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