NEWS
Merlin records weak summer at UK theme parks after Smiler accident
POSTED 17 Sep 2015 . BY Tom Anstey
A report as a result of an inquiry into the Smiler incident is expected on 24 September
After suggesting that the rollercoaster crash that seriously injured four people in June could affect profits by up to £50m (US$77.6m, €70m), Alton Towers operator Merlin Entertainment has confirmed a notable slump after weak trade through the UK’s summer months.

“The trends we reported at the half year have continued throughout the summer,” said Merlin chief executive Nick Varney, reiterating the comments made in July. “Although difficult to assess at this stage, we continue to believe that there may be an ongoing adverse impact on the resort theme parks operating group profitability in 2016.”

Thanks to strong trade for Merlin’s Legoland theme parks in North America and Germany, group like-for-like sales for the 36 weeks ended 5 September were up 0.3 per cent. However, this still reflects a slow in growth which was up 2.8 per cent at the halfway point of 2015. A weak Euro also contributed to lost revenue at Merlin’s London attractions, which have high visitor numbers from the continent.

Despite its woes in the UK theme park sector, Merlin is predicting profit before tax to be “broadly in line” with 2014’s results, which came in at £249m (US$372.5m, €329.2m) for the year.

Merlin has made several investments into its UK theme parks this year, which helped to offset a drop in visitor number, including the launch of the Enchanted Village accommodation at Alton Towers, the Aztec hotel at Chessington World of Adventures and a new Lego “Friends” themed area at Legoland Windsor.

A report as a result of an inquiry into the Smiler incident is expected on 24 September.

RELATED STORIES
  Alton Towers continues short-break push with plans for new multi-million hotel addition


After costing parent company Merlin Entertainments around £50m (US$77.6m, €70m) in profits following the Smiler accident, Alton Towers has revealed multi-million pound plans for a fourth hotel as the park aims to become the UK’s leading short break destination.
  Smiler incident could cost Merlin £50m, says operator


Merlin Entertainments has said the rollercoaster crash that seriously injured four people in June could affect profits by up to £50m (US$77.6m, €70m), with the tragic incident having an adverse effect on trading at the start of an important period for the operator.
  Multi-million pound Shrek's Adventure comes to Merlin's London cluster


Merlin Entertainments has launched the latest attraction at its London cluster on the River Thames, a ‘game-changing’ fully immersive Shrek attraction, which the project’s creative director has said will take linear experiences to new heights.
  Four Merlin rollercoasters temporarily shut down after Alton Towers accident


Following the incident at Alton Towers, which saw a carriage full of people crash into an empty one on the Smiler, four rollercoasters operated by Merlin Entertainments at parks across the UK have been closed until further notice.
 


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17 Sep 2015

Merlin records weak summer at UK theme parks after Smiler accident
BY Tom Anstey

A report as a result of an inquiry into the Smiler incident is expected on 24 September

A report as a result of an inquiry into the Smiler incident is expected on 24 September

After suggesting that the rollercoaster crash that seriously injured four people in June could affect profits by up to £50m (US$77.6m, €70m), Alton Towers operator Merlin Entertainment has confirmed a notable slump after weak trade through the UK’s summer months.

“The trends we reported at the half year have continued throughout the summer,” said Merlin chief executive Nick Varney, reiterating the comments made in July. “Although difficult to assess at this stage, we continue to believe that there may be an ongoing adverse impact on the resort theme parks operating group profitability in 2016.”

Thanks to strong trade for Merlin’s Legoland theme parks in North America and Germany, group like-for-like sales for the 36 weeks ended 5 September were up 0.3 per cent. However, this still reflects a slow in growth which was up 2.8 per cent at the halfway point of 2015. A weak Euro also contributed to lost revenue at Merlin’s London attractions, which have high visitor numbers from the continent.

Despite its woes in the UK theme park sector, Merlin is predicting profit before tax to be “broadly in line” with 2014’s results, which came in at £249m (US$372.5m, €329.2m) for the year.

Merlin has made several investments into its UK theme parks this year, which helped to offset a drop in visitor number, including the launch of the Enchanted Village accommodation at Alton Towers, the Aztec hotel at Chessington World of Adventures and a new Lego “Friends” themed area at Legoland Windsor.

A report as a result of an inquiry into the Smiler incident is expected on 24 September.




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