Merlin has the magic as visitor numbers rise despite terror fears
VISITORS have continued to flock to Merlin Entertainments’ global attractions this year, despite terrorism fears and a weaker pound threatening UK tourist numbers.
Around 29.7 million people paid a visit to one of the company’s theme parks or tourist attractions in the first six months of the year, 6.2pc more than in the same period last year.
But the company said it remained “cautious” about the threat to its UK attractions after recent terror attacks in Manchester and London.
Trading in London, where the company operates Madame Tussauds and the London Eye, was buoyed by a weaker pound attracting foreign visitors, but domestic demand was reduced, the company said.
Further afield, the company’s eight Legoland parks have been its strongest performers.
It recently opened a new park in Japan, has plans to set up shop in South Korea, and is seeking permission to build one in New York.
Overall, the Legoland parks’ revenue was 34.6pc higher in the first half of the year than in the same period last year, at £267m. Last month Merlin opened a new Madame Tussauds attraction in Delhi, and has also recently opened two new attractions in China.
The fall in sterling is beneficial for the group because more than 70pc of its profits are earned outside the UK, meaning they benefit from the weaker pound.
Overall, the company’s revenues grew 19.4pc in the first half of the year, to £685m, if changes in currency were stripped out. Pre-tax profits were flat at £50m. Merlin increased its dividend in the period to 2.4p, up from 2.2p a year ago. Nick Varney, the company’s chief executive, said he was excited by the “long-term underlying growth prospects” in the overall entertainment market.
“We remain on track to meet our 2020 milestone targets, supported not only by the attractions and accommodation opened to date, but also by the progress we have made on the pipeline, in particular the ongoing development of new brands which will underpin the longer term roll-out,” he said.