We are Aussie Strength. The ultimate supplier for Commercial Gym Equipment that's built to deliver in the toughest environments. From USA-Built hardcore weight training equipment from Arsenal…read more
Merlin Entertainments sees profits fall through first half of 2018
Global attractions operator Merlin Entertainments has reported that while revenue across its operations increased by US$31.4 million for the first half of the year, it has experienced a decline in operating profits, which fell by US$13 million.
For the six months to 30th June, revenue was US$927 million, rising from US$895.7 million, for the same period in 2017, representing a 3.5%.
Operating profits saw a significant fall, down to US$82.4 million - a 14.3% decline. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) also dropped slightly, down 1.3% to US$187 million, compared to US$188.3 million for the same period in 2017.
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.
Explaining the results, Merlin Entertainments Chief Executive Nick Varney advised “in the existing estate we have been pleased with trading in the resort theme parks operating group.
"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, Florida, USA and Sydney; the Lego City: Deep City Adventure at Legoland California, USA; the Wickerman wooden coaster at Alton Towers in the United Kingdom; and the Peppa Pig additions at Heide Park in Germany and Gardaland, Italy.
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.
Images: 2018 has seen the death of two guests who, at different times, fell from the Merlin operated Skywalk attraction at Sydney's Centrepoint tower (top) and Nick Varney at the launch of LEGOLAND Japan (below).
18th May 2018 - Historic levels of growth in global theme park industry in 2017
2nd April 2018 - Leisure industry gets into April Fool’s Day spirit
13th March 2018 - Illawarra Fly Treetop Walk reaches 10 years of operations
22nd February 2018 - Massive new Sea Life Nagoya to open next to Legoland Japan
22nd July 2017 - Poor ticket sales see Legoland Japan reduce opening days
27th April 2016 - Merlin Entertainments marks five years of operations in Australasia
17th October 2014 - Merlin Entertainment reveals plans for Legoland Dubai
4th July 2013 - Merlin looks to major growth in Asia
Support our industry news service
We hope that you value the news that we publish so while you're here can we ask for your support?
As an independent publisher, we need reader support for our industry news gathering so ask that - if you don't already do so - you back us by subscribing to the printed Australasian Leisure Management magazine and/or our online news.
Click here to view our subscription options.
The Complete Guide to Leisure Industry Products & Services.
Perfect Gym Solutions is a software as a service (SaaS) solution purpose-built to service the fitness industry, with over 1000 clients servicing over 2 million gym members across 40 countries making…read more
We are the leading providers of kids fun multi-sports programs for Sport and Recreation Centres. Programs cover twelve common sports as well as Gross Motor Skill Development and suit children from as…read more
PROVEN BUSINESS CONCEPTS WITH XBODY XBody’s goal is to see you and your EMS business succeed. That is why we don’t just sell equipment, we provide know-how, expert knowledge,…read more
AUSTRALIAN MADE. FIT FOR PURPOSE. Based on the Gold Coast, AlphaFit is a leading manufacturer and supplier of Australian gym equipment specifically for the commercial, strength and conditioning,…read more
TPEC Pool Enclosures provide a large range of premium commercial and residential retractable swimming pool, spa and terrace enclosures throughout Australia, servicing residential, local government…read more
SPORTENG specialises in the Planning, Design and Construction inspection of Fields of Play for all sports. Blending engineering with the specialist knowledge gained from working closely with sport…read more
get listed with our suppliers directory
Get your business noticed in our targeted directory. Viewed by 10,000 industry professionals per week!