Lego Movie success proves magic for Merlin as revenues increase

Leisure group lifted by good weather

MERLIN ENTERTAINMENTS, which operates attractions including Madame Tussauds waxworks, Legoland, The York Dungeon and Scarborough Sea Life Sanctuary, reported a rise in first quarter revenue helped by good weather in Europe.

The group also benefited from the success of The Lego Movie, which was the surprise No 1 film at the UK box office in 2014 and will be followed by Lego Batman which is due out in 2017. Merlin reported strong trading at its Legoland Parks as a consequence.

The world’s No 2 operator of visitor attractions behind Walt Disney said underlying sales rose 3.3 per cent in the 18 weeks to May 2 and by 6.5 per cent on a constant currency basis and including contributions from new openings.

Group chief executive Nick Varney said: “Merlin has had a satisfactory start to 2015.

“Perhaps most importantly however, guests are telling us they love our new products and attractions.

“Looking forward, we are positive on the outlook for the remainder of the year. At this early stage of the season, our full year expectations remain unchanged, although we remain mindful of the potentially negative impact a weaker euro could have on eurozone visitation to the UK.”

Merlin has ambitious expansion plans with new Legoland Parks due to open in Dubai, Japan and Korea by 2017 as well as shortstay sites such as Dungeons, Sea Life Centres and Shrek-themed attractions.

Those openings will be overseen by a new management team.

Keith Bowman, equity analyst at Hargreaves Lansdown Stockbrokers, said: “Trading during the group’s seasonally quiet period has proved in line with forecasts, and comes against tough

2014